Finding Text
2021-011 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Federal Agency: Department of Education & Department of the Treasury Federal Program: Title I Grants to Local Educational Agencies – ALN 84.010 Supporting Effective Instruction State Grants – ALN 84.367 School Improvement Grants – ALN 84.377 Elementary and Secondary School Emergency Relief Fund – ALN 84.425 Coronavirus Relief Fund – ALN 21.019 Condition: The School District was unable to provide supporting documentation for all expenses. Criteria: The expenses charged to the program by the School District should be supported by the School District’s financial records. We were unable to observe documentation supporting salaries paid, and multiple invoices for disbursement could not be examined. Effect: The School District was not in compliance with the requirements. Cause: The School District did not maintain adequate documentation for expenses. Recommendation: We recommend that the School District establish a policy and procedure to ensure supporting documentation is maintained for all transactions. Management’s Response: The District has appointed a Federal Programs Coordinator who is familiar with the Single Audit requirements of the Uniform Guidance. Management has restructured its business office and is working with third party consultants in conjunction with the Federal Programs Coordinator to implement policies and procedures to properly document federal grant expenditures. These policies and procedures include maintaining proper source documentation for federal award program activities and reconciling that documentation with amounts recorded in the general ledger within the District’s accounting software on a consistent basis. Questioned Costs: None Repeat Finding: This is a repeat finding from the previous audit, 2020-008.