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 managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Condition: Management reviewed expenditure reports prior to submission, however this review did not detect or correct errors in the expenditure report. Questioned Costs: None. Context: The District submitted innacurate expenditure reports which did not agree with the accounting records. Effect: The District reported expenditures that could not be supported by the accounting records. Cause: When the expenditure reports were reviewed they were not accurately compared to the accounting records. Recommendation: Management's review of the expenditure reports should include a comparison of the functions and objects reported on the report to the accounting records. Management's Response: The District agrees with the finding and a corrective action plan and proper internal controls will be implemented.