Finding Text
Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. COVID-19 Education Stabilization Funds were to be spent on allowable cost, per funding guidelines. The District?s processes over allowable costs needs improvement as costs determined to be unallowable were charged to the education stabilization fund. Cause: Certain internal controls were not in place to prevent unallowable costs being charged to the grant Effect: The cost of the assistance may be disallowed. Questioned Costs: $32,320 Context: A sample of 60 checks totaling $584,813 was selected for audit from a population of 523 checks totaling $1,482,664. The test found three checks that were not in compliance with questioned costs totaling $32,320. Our sample was a statistically valid sample. Recommendation: The District should verify the allowability of the costs that were charged to the grant. Views of Responsible Officials and Planned Corrective Actions: The District concurs with the finding, see corrective action plan.