Finding 1141025 (2024-003)

Condition/Context: The District's system of tracking its grants was not fully adjusted at the time of the audit and the SEFA had not been completed in order to determine the total amount of grant expenditures as of June 30, 2024. Cause: The District has individuals with the skills, knowledge and expertise to perform these activities in-house. However, the transition within the Business Office at the end of June 30, 2023 and the change in accounting software format, affected the District's ability to close the fiscal year in a timely manner and prepare a complete and accurate SEFA. Effect: The District did not prepare a complete and accurate SEFA. Recommendation: As management continues to acclimate itself to the District's processes and accounting software, we recommend working with the external auditors to gain a more thorough understanding on the preparation of the SEFA going forward. Views of Responsible Officials and Planned Corrective Actions: Management agrees and working to ensure grant reporting is complete in order to prepare the SEFA going forward. It is noted that there has been progress in this area over the past several months as the new business manager has become more acclimated with the software and processes.