Finding 1172770 (2025-004)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-02-06
Audit: 386055
Auditor: SCHEFFEL BOYLE

AI Summary

  • Core Issue: The District reported budgeted costs instead of actual expenditures, leading to questioned costs of $5,448.
  • Impacted Requirements: The District must accurately report allowable costs based on actual expenditures for the grant period.
  • Recommended Follow-Up: Reconcile budgeted amounts with general ledger totals and expenditure reports before future submissions.

Finding Text

Criteria: Allowable Costs/Activities Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget, and for the period of the grant. Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures. Questioned Costs: The questioned cost $5,448. Context: The District claimed a total of $159,716 of salaries for cost object and function 1000-100. This is the total expenditures claimed across the 07/01/24 - 08/31/25 grant reporting period. Of the total, $16,503 were claimed in FY25. Per review of grant expenditures, the District could only locate $11,055 of eligible salaries with appropriate back-up. The difference of $5,448 is questioned costs. Effect: There is an increased risk that these funds will be subject to repayment as they were incorrectly submitted for reimbursement. Cause: This was an oversight by management personnel in the District. The District mistakenly reported the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management's Response: The District will review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting.

Corrective Action Plan

Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures in Title I, Grant Year 2024. Questioned costs of $5,448. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management Response: The District will take necessary steps to review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting the final grant reports. Anticipated Date of Completion: June 30, 2026

Categories

Allowable Costs / Cost Principles Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1172771 2025-005
    Material Weakness Repeat
  • 1172772 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $322,536
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $272,380
10.553 SCHOOL BREAKFAST PROGRAM $50,336
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $43,312
93.778 MEDICAL ASSISTANCE PROGRAM $26,483
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $25,664
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $15,800
10.555 NATIONAL SCHOOL LUNCH PROGRAM $12,221
84.425 EDUCATION STABILIZATION FUND $10,235
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $2,711