Finding Text
2024-002 Material Weakness in Internal Control Over Period of Performance – Health Center Program, WIC Special Supplemental Nutrition Program for Women, Infants, and Children, and Immunization Cooperative Agreements (93.224, 10.557, 93.268) Criteria: As discussed in the material weakness in internal control over financial reporting item 2024-001, this requires the statement of expenditures of federal awards to report on the accrual bases of accounting. Condition: See material weakness in internal control over financial reporting item 2024-001. Audit procedures identified that payroll periods overlapping the fiscal year-end were not properly allocated. Specifically, for the WIC (10.557), Immunization (93.268) and Health Center (93.224) programs, the District incorrectly included two days of salary from the prior fiscal year (September 2023) while failing to accrue three days of salary earned within the current fiscal year (September 2024). Additionally, for the Health Center (93.224) program, the District failed to properly adjust the SEFA for a salary overpayment, which was further impacted by improper fiscal year-end accrual timing. The cumulative impact of these errors resulted in a net understatement of $5,513 in SEFA expenditures as follows: • Immunization (93.268): $2,469 Net Understatement • WIC (10.557): $3,085 Net Understatement • Health Center (93.224): $41 Net Overstatement Cause: See material weakness in internal control over financial reporting item 2024-001. Effect: As discussed in the material weakness in internal control over financial reporting item 2024-001, the statement of expenditures of federal awards was under accrued as of year end. Recommendation: See material weakness in internal control over financial reporting item 2024-001. Management’s Response: See material weakness in internal control over financial reporting item 2024-001. Questioned Costs: None. The costs were determined to be allowable and substantiated; however, they were reported in the incorrect fiscal period. Recurring Finding: No. (New finding for the fiscal year ended September 30, 2024).