Finding Text
2024-001 SIGNIFICANT DEFICIENCY – SALES TAX PAID
Condition: During our review of IDEA funds, we noted that sales tax was paid on multiple invoices.
Criteria: When federal dollars are used to pay for items from a tax exempt entity, it is important to ensure the vendor is not charging the entity sales tax.
Cause: The District paid sales tax on multiple invoices we found during our testing.
Effect: Unallowable cost through IDEA.
Perspective: The District should have controls in place and a review process to ensure sales tax is not being charged.
Recommendation: We recommend the District go through and update (or establish) procedures to ensure sales tax is not being paid.
Views of Responsible Officials and Planned Corrective Actions: Haysville USD 261 staff involved will work with the necessary parties to ensure policies and procedures are updated.