Finding 16316 (2022-002)

22-02 Finding Statement of Condition ? The District?s final expenditure reports with the Oklahoma State Department of Education and Oklahoma Cost Accounting System (OCAS), did not match the actual allowable expense for their program. Criteria ? Good internal control requires procedures to be in place for effective oversight and to properly record and track federal program expenditures and revenues. Cause/Effect of Condition ? Lack of internal control allows for non-compliance with expenditure tracking and over statements in reporting to State and Federal Agencies. The applicable expenditures utilized by the District for several program allocations were not the same as reported to the State Department of Education and the Oklahoma Cost Accounting System (OCAS) as follows: Applicable Program Program Expenditures Federal Program Expenditures Reported on OCAS COVID-19, Cares Act ESSER II $332,760.82 $271,557.38 COVID-19, Cares IDEA-B Flo Through ARP $ 52,746.87 $ 45,719.03 Flood Control $ 0.00 $ 1,491.00 The two (2) COVID-19 programs were originally submitted correctly to the State Department of Education and the allowable expenses were reimbursed to the District. The District staff made code changes to expenditures and inadvertently adjusted project codes on the final federal expenditure reports submitted to the State Department of Education. The Flood Control program did not have federally allocated funds. Recommendation ? All federal program funding is to be tracked utilizing the prescribed OCAS expenditure and revenue project code numbers. Those codes are to be utilized only for the amount the District is allocated for federally funded program. During our audit, we also became aware of the following deficiencies in internal control other than significant deficiencies or material weaknesses, and other matters that are opportunities for strengthening internal controls and operating efficiency: