Finding 1097195 (2024-003)

Federal Program: U.S. Department of Justice AL #16.710. Federal Award Year: 2024. Criteria: When non-federal entities are funded under the reimbursement method, expenditures need to be incurred prior to the date of the reimbursement request (2 CFR section 200.305(b)(3)). Condition: During our testing of cash management procedures, it was noted that the first draw down request was for an amount greater than the amount of expenditures that had been incurred as of the draw down date. The entire amount of requested funds was paid to the District. Cause: Lack of internal controls over the draw down process. Effect: The District received federal funds in excess of what is allowed under the program. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendations: We recommend the District review their procedures over draw requests to ensure that the appropriate funds are being requested. Views of Responsible Officials and Planned Corrective Actions: Management recognizes the deficiency and plans to implement the auditor's recommendation.The District has returned all overdrawn funds to the Federal agency.