Finding Text
Finding: The District does not have a process for report preparation and review. Criteria: A proper internal control structure would include segregation of duties and would ensure that reports are reviewed by an individual other than the preparer prior to submission. Condition: In the prior year, the District’s finding 2023-004 over the ESF program stated “the reports were prepared and submitted by the same employee and no independent review took place prior to submission.” In the current year, the required quarterly reports were submitted; however, there is no documentation of the preparer and no documentation of a review being performed. The Special Education-Grants to States program submitted to the Grant Wood Area Education Agency did not agree to the expenditures by object from the District’s trial balance. There was no documentation of a review being performed. Cause: The District has had significant turnover in the Business Office. Effect: Reports submitted for the federal program may have errors or be inaccurate. Questioned costs: None Context: The ESF program requires quarterly reimbursement submissions. The Special Education- Grants to States program requires semi-annual and annual reports. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a process whereby financial grant reports are prepared by the program administrator and reviewed by the Business Office prior to submission. The preparation and review process should be formally documented and maintained in a retrievable file system.