Finding Text
Criteria: The District is responsible for establishing and maintaining internal control over compliance and financial reporting sufficient to prepare a Schedule of Expenditures of Federal Awards (SEFA) that is complete, accurate, and prepared in accordance with Uniform Guidance requirements. Condition Found: As part of our audit of the District’s SEFA, we assisted management in the preparation of the SEFA in accordance with Uniform Guidance. While our assistance in the preparation of the SEFA complies with Uniform Guidance, those standards also require that we report this material weakness in control over financial reporting to those with governance responsibilities. Cause and Effect: Although management reviews and approves the SEFA, there is not a system of internal control in place at the District to verify that the SEFA complies with Uniform Guidance in all material respects. This is because there is not an experienced accountant with the skills, knowledge, and expertise needed for this function employed at the District. Recommendation: We recommend that management establish procedures to identify federal awards, accumulate expenditures by federal program, and review the SEFA for completeness and compliance with Uniform Guidance requirements. The Board should continue to provide oversight of the District's federal reporting process. Identification as a Repeat Finding, if applicable: Not applicable Questioned Costs: None Management response and corrective action plan: Management agrees with the finding and recommendation. The District will establish procedures to identify and accumulate federal expenditures throughout the year and will implement a review process over the preparation of the SEFA prior to its submission for audit.