Finding 1096210 (2024-002)

Criteria: Compliance requirement A. Activities Allowed or Unallowed applies to this finding. Condition: During our testing of allowable activities we noted the total amount per draw (requested amount) exceeded the budget by $27,009 in reimbursement requests. In addition, one employee's salary was calculated for reimbursement at a rate of 25% instead of the 20% approved in the budget ($4,371 difference).Cause: The overall budget was not compared to the individual cost categories specified in the budget throughout the year allowing the amounts to exceed the allowed costs. Effect or potential effect: The School’s spending allocations are not in compliance with the budget. Questioned costs: Total amounts exceeding the budget were $27,009 in reimbursement requests. Total reimbursement in excess of allowed salary was $4,371. Total questioned costs are $31,380. Context: When comparing the allowed expenses to the budget the auditors noted additional spending in excess of the allowed cost categories. Recommendation: We recommend the budget be reviewed during each draw request to ensure overspending does not occur. Views of responsible officials: Management acknowledges the audit finding related to exceeding budgeted amounts for specific allowable activities. We understand the importance of adhering strictly to approved budgets and appreciate the auditor's insights for improving our internal controls.