Finding 1172525 (2025-013)

Condition: The District did not prepare a complete Schedule of Expenditures of Federal Awards that could be fully verified and reconciled to the trial balance. Criteria: The Schedule of Expenditures of Federal Awards (“SEFA”) is required under federal regulations to be prepared by the Auditee when spending $750,000 or more in federal funds. Questioned Costs: There are no questioned costs. Cause: The District did not have sufficient controls over the tracking of federal expenditures and reconciled to the general ledger. Effect: The SEFA may include expenditures that are not eligible for reporting and may omit expenditures that should be reported. Recommendation: In order to prevent future occurrences of this deficiency, we recommend that management develop a method to track federal grant funds and the use of those funds and reconcile both to the general ledger. Perspective: This is a systemic issue in that controls over the requirement have not been developed to ensure the reported information is accurate. Repeat: This is not a repeat finding. Auditee’s Response: The District agrees with the finding. See attached corrective action plan.