Finding Text
Criteria: According to 2 CFR part 200, the District is required to file accurate reports with the Missouri Department of Elementary and Secondary Education, the granting agency. Condition: It was noted for the 2024/2025 school year, the information reported on the reports filed with the granting agency could not be reconciled to the District's general ledger. The District completed the Final Expenditure Report as required but could not produce support for the amounts drawn. The District had to go back and recode multiple years of expenses to be able to allocate the revenues to allowable expenses. Cause: The District's staff in charge of reporting for federal awards is inexperienced in single audit requirements and unaware of many requirements relating to coding and tracking of awards. Effect: Risk is present that non-allowable costs could end up being reported as allowable costs for grants and not be detected or reported correctly in the financial statements and schedule of expenditures of federal awards. Recommendation: We recommend that increased monitoring over federal awards funds be implemented and that expenses be checked for compliance and proper reporting in the schedule of expenditures of federal awards and Final Expenditure Reports as required by the granting agency. This should include reconciling between expenses being tracked on reports outside of the general ledger and the expenses being entered into the general ledger to ensure that each grant is properly recorded. Management Response: The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these funds reconcile to the general ledger going forward.