Finding Text
Criteria or specific requirement: 2 CFR §200.302(b)(3) and §200.303 require non-Federal entities to maintain effective internal control over Federal awards, including written documentation supporting the review and approval of transactions prior to submission for reimbursement. Condition: During our testing over reimbursement requests, we noted the review and approval was not formally documented before submission of the requests. Questioned costs: None Context: There was no formal documentation for review and approval of reimbursement requests before submission. Cause: The District does not have a formalized process requiring documented evidence of review and approval of reimbursement requests before submission. Effect: Without documented review and approval, the District increases the risk that reimbursement requests may include unallowable, inaccurate, or unsupported costs, resulting in potential noncompliance with Federal requirements. Repeat Finding: No Recommendation: We recommend the District implement a formal process requiring documented evidence of review and approval of all reimbursement requests prior to submission, such as dated sign-offs or electronic approval records, to strengthen internal controls and ensure compliance with Federal requirements. Views of responsible officials: [There is no disagreement with the audit finding.] Action taken in response to finding: The District will provide formal documentation by reviewing and signing the claims for approval of reimbursement requests before submission to the state. Name of the contact person responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025