Finding 1216046 (2025-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-05-29

Audit: 402576

Organization: Communities in Schools of the Dallas Region, Inc. (TX)

Auditor: SUTTON FROST CARY LLP

AI Summary

Core Issue: CISDR lacks proper internal controls for documenting allowable costs, leading to missing documentation for 23 out of 50 transactions.
Impacted Requirements: Compliance with internal control procedures is compromised, resulting in questioned costs of $2,607.83.
Recommended Follow-Up: Implement a document retention plan and provide training for all staff on compliance policies.

Finding Text

Finding 2025-002: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. 21st Century Community Learning Centers ALN 84.287C State Compensatory Education Funds – Communities In Schools Criteria: CISDR’s internal control procedures over compliance requires supporting documentation for all purchases. Condition: During allowable cost testing for federal and state grants, supporting documentation for 23 out of the 50 transactions tested could not be located. Cause: CISDR had significant turnover in management and accounting staff, resulting in document retention failures. Effect: CISDR’s document retention was not in accordance with internal control over compliance procedures. Expenses charged to the grant could not be substantiated. Questioned Costs: $2,607.83, representing the amount of the samples tested that had no supporting documentation. Recommendation: Management should implement a document retention plan and train all staff on the policy. Management’s Response: See corrective action plan.

Corrective Action Plan

Summary of Finding: Supporting documentation for certain grant-related expenditures could not be located during compliance testing. Management Response The Organization maintained procedures requiring supporting documentation for grant-related expenditures during FY2025; however, supporting documentation was not consistently centralized or retained in a manner that allowed for efficient retrieval during audit testing. Management has since implemented centralized electronic document retention procedures for invoices, grant support, reimbursement documentation, and related approvals. Responsibilities for maintaining and reviewing grant documentation have been clarified between management and the outsourced accounting team to improve accountability and consistency of execution. In addition, grant reimbursement support is now reviewed prior to submission and retained electronically to strengthen ongoing compliance monitoring and audit support procedures. Management has also developed and implemented a recurring Grant Utilization Review meeting process designed to support periodic review of grant activity, supporting documentation, reimbursement status, and compliance-related matters. The first quarterly review meeting is scheduled for June 2026.

Other Findings in this Audit

1216042 2025-001

Material Weakness Repeat
1216043 2025-002

Material Weakness Repeat
1216044 2025-004

Material Weakness Repeat
1216045 2025-001

Material Weakness Repeat
1216047 2025-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.558	TEMPORARY ASSISTANCE FOR NEEDY FAMILIES	$252,874
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$116,517
84.287	TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS	$112,563
84.425	EDUCATION STABILIZATION FUND	$58,199
14.218	COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS	$8,557