Finding Text
Criteria or Specific Requirement: Per 2 CFR 200.303 a grant recipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The District's internal controls did not affectively monitor the grant budget. Questioned Costs: None. Context: The District did not compare actual expenditures in each grant line item with available remaining budget amounts. Effect: The District claimed expenditures in grant lines that had already been fully expended. Cause: When expenditures were reviewed and approved they were not compared to the remaining budget. Recommendation: The District should accurately track the actual expenditures compared to the remaining budget for each grant line. Management's Response: The District agrees with the finding and a corrective action plan and proper internal controls will be implemented.