Core Issue: The District lacks an effective internal control system for managing federal awards.
Impacted Requirements: This affects the completeness and accuracy of the schedule of expenditures and related disclosures.
Recommended Follow-Up: Implement a robust internal control system to ensure compliance with accrual accounting standards.
Finding Text
The District does not have a system of internal control that would provide management with reasonable assurance that the District's schedule of expenditures of federal awards and related disclosures are complete and presented in accordance with the accrual basis of accounting.
Corrective Action Plan
The District relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal awards including the related note disclosures. The District reviews the schedule of expenditures of federal awards and approves all adjustments.