Finding 1161831 (2023-001)

Criteria: Proper recording of all transactions, including all revenues and expenses, allows for accurate reports and whether the district is subject to single audit. It also helps ensure that receipts and disbursements have been applied accurately and that all activity has been accounted for. Condition: The electric school bus purchased with EPA Clean School Bus Program funds was not recorded on the district books. The transaction was also not mentioned to auditors when conducting the audit. Cause: The district did not record the transaction on the books. Effect: Failure to record the electric school bus purchase on the books understated revenues and expenses. This also understated federal expenditures for single audit determination. The district was subject to single audit and the auditor had to do further testing and resubmit the audit. Questioned Costs: The total amount of the electric school bus purchase was $393,184. Recommendation: We recommend the district record all transactions in the books, including anything purchased directly with grant money. We also recommend the district keep track of total federal expenditures to determine if a single audit is required. Management's Response: Management cocurs with the finding.