Finding Text
Finding #2025-004; Distance Learning and Telemedicine – ALN No. 10.855; Year Ended June 30, 2025 CONDITION: The District’s internal control over compliance failed to ensure timely distribution of advanced federal grant funds. CRITERIA: Internal controls over federal programs and adherence to the District’s policies are to be sufficient to ensure compliance with grant requirements, as discussed in Compliance Finding 2025-003. CAUSE: The cause of the internal control deficiency over compliance was the failure to adhere to the District’s established cash management policy. EFFECT: The effect of this deficiency is that internal controls over cash management are not functioning as designed, and grant funds were held for an excessive period of time prior to disbursement for payment of invoices. RECOMMENDATION: We recommend that the District follow its established cash management policy to attempt to expend all advances of federal funds within seventy-two (72) hours of receipt. Further, advances of funds should be requested only when payment is anticipated and after discrepancies with products received have been corrected to mitigate the amount of time grant funds are held prior to disbursement. MANAGEMENT RESPONSE: Management agrees with the recommendation. The District will follow the cash management policy and ensure timely disbursement of advanced federal funds. Further, the District will monitor the submission of requests for funds to correspond with anticipated payment of invoices.