Finding 1094177 (2023-002)

Section III: Federal Award Findings and Questioned Costs Material Weakness Finding 2023-002 Finding Cash management excessive cash and fund balances. Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Compliance Requirement: Cash Management Repeat Finding: No Criteria: Management is responsible for complying with the requirements of the Mississippi Department of Education Procedures Manual, which recommends that expenditures should be expended before the reimbursements are requested for reimbursable grants. Condition: We noted the following exceptions during our review of cash management: 1. The cash balance was excessive for Title I Fund in the amount of $87,497 These amounts were included in the allocation of funds to the district for reimbursement of expenditures that had not been expended by the district. 2. The amounts were not presented as deferred revenues on the district’s financial statements. Context: Federal funds were reviewed for excessive cash balances and/or fund balances at year end. Cause: Improper internal controls resulted in the district not recording expenditures and reimbursements accurately and timely. Expenditures and reimbursements for request were not properly reconciled. Effect: The effect could lead to fraud and errors occurring if transactions are not properly recorded accurately and timely. Improper internal controls concerning these particular fund allocations could result in questioned cost by the federal agencies. Questioned Cost: Title I School Grants to local educational agencies - $89,497 Recommendation: The district should implement stronger internal controls to ensure that all reimbursements are requested accurately in each area when the expenditure is expended by the district. Views of Responsible Officials Please see Auditee’s Corrective Action Plan.