Finding Text
Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness)
Assistance Listing Number and Title: 84.041 Impact Aid
Name of Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 84.010 Title I
Name of Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch
Name of Federal Agency: U.S. Department of Agriculture
Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.
Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including:
• Overclaimed revenues for Title I
• Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation
• Incorrect reporting of state and federal revenues for National School Lunch Program.
Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger.
Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments.
Questioned Cost: No
Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following:
SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger
Repeat of a Prior-Year Finding: No
Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA.
District’s Response: The District acknowledges the deficiencies.
Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs.
Planned Implementation Date: August 1, 2025
Responsible Person: District Business Manager
Section IV—Summary Schedule of Prior Audit Findings
There were no findings for the fiscal year ended June 30, 2023.