Finding Text
Finding 2025-002 Lack of Internal Controls over Reporting Federal Agency: U.S. Department of Education Federal Program: Research and Development Cluster ALN: 84.351 Award Numbers: S351A210129 Award Years: 2021-2026 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Per 2 CFR 200.329, the grant recipient must monitor their activities under Federal Awards to ensure they are compliant with all requirements and meeting performance expectations. Per the grant award, performance reports should contain current performance and financial expenditure information for the grant. Condition and context: During our testing of reporting, we noted that the total expenditures reported on the November performance report exceeded the expenditure account detail for the reporting period by about $60,000. Per the grant director, this was due to purchase order requisitions being cancelled by the business manager that were still accrued as expenditures on the November report by the grant director. Cause: The district did not have internal controls in place to avoid overstating expenditures in the grant report. Effect: Failure to accurately report expenditures could result in noncompliance with federal grant requirements and a loss of Federal grant funding. Questioned Costs: None. Repeat Finding: No. We believe this to be an isolated occurrence. Recommendation: We recommend that the District follow internal control procedures to confirm that grant expenditures are accurately reported. Management’s Response: Management concurs with the finding. See Corrective Action Plan.