Finding Text
Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Compliance Supplement: Education Stabilization Fund, Reporting- The District is required to have internal controls, including segregation of duties, over reporting for quarterly expenditure claims. These internal controls should be effective in preventing, detecting, and correcting misstatements in the reports. Condition: Multiple individuals are responsible for the preparation and submission of the District's quarterly expenditure reports; however, the expenditure reports filed for September 30, 2024 included expenditures in the amount of $22,040 that were neither obligated nor liquidated by the date of the report. Questioned Costs: None. Context: The District's internal controls did not identify and correct a material misstatement in the Septmeber 30, 2024 expenditure report for the 2025 Covid-19 - Community Partnership grant - C3 program. Effect: The September 30, 2024 expenditure report was filed overstating expenditures by $22,040. Cause: The individual responsible for reviewing the expenditure report did not have adequate knowledge of the federal reporting requirements; consequently, errors on quarterly expenditure reports were not identified in the review. Recommendation: Personnel with adequate knowledge of reporting requirements should review all expenditure reports to ensure any errors are identified and corrected before the expenditure report is submitted. Management's Response: Management does not disagree with this finding, and competent personnel will review all future expenditure reports.