Finding Text
SIGNIFICANT DEFICIENCY 2022-003 Identification of Pass-Through Entities Condition: The District failed to initially recognize the State of Missouri as being a pass-through entity of Federal awards for the food service program. Criteria: The District should review all grant funds being received or expended to determine how to properly code so that the State and Federal grant expenditures are recorded accurately in their system and on the schedule of expenditures of federal awards. Effect: Risk is present that Federal grant expenditures could be incorrectly coded, and therefore, not included on the schedule of expenditures of Federal awards. Recommendation: We recommend that the District update its process for preparing the schedule of expenditures of federal awards to include determining which grants are received from pass-through entities. Management Response: The District has corrected the SEFA totals for 2021-2022 to include the pass-through entities previously not included, and will correct its review process going forward.