Finding Text
Finding: The District does not have an adequate process to ensure approval and documentation of disbursements charged to the federal program. Criteria: The May 2024 Office of Management and Budget Compliance Supplement states the following for Compliance Requirements – Allowable Costs and Activities –“..Be consistent with the policies and procedures that apply uniformly to both federally financed and other activities of the nonfederal entity…Be adequately documented.” Condition: The following are the conditions: 1) The District does not have a process to ensure that costs are properly approved for the Nutrition program or ESF program or Special Education-Grants to States program. Invoices did not have documentation for approval to pay. 2) The District does not have a process to ensure costs charged to the Nutrition and ESF program are allowable and properly coded. Invoices were not coded to the proper account and were not documented for allowability. Cause: The District is not requiring invoices to be approved by the Department Head prior to payment. The District is not posting to project object codes per the state chart of accounts. Effect: Unallowable or unapproved costs could be charged to the program. Context: For the Nutrition Program, ten instances from a sample of twenty-five randomly selected Nutrition Program disbursements did not have documentation of invoice approval. One of those instances was a meal for a Food Services meeting that was incorrectly coded to the “In District Mileage” account rather than the “Other Employee Incentives” account. For the ESF Program, twenty-five instances from a sample of forty-two randomly selected disbursements did not have documentation of invoice approval. Seventeen disbursements were not coded to the proper object code. For the Special Education-Grants to States Program, eight instances from a random sample of twelve did not have documentation of approval of the invoice. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District implement a process to ensure all charges to the program have documented Department Head approval prior to payment and the charges are posted to the proper account and are allowable to the program.