Finding Text
Finding: The District was unable to substantiate charges to the Education Stabilization Fund program Criteria: The Office of Management and Budget (OMB) 2022 Compliance Supplement specifically states the Education Stabilization Fund federal program is required to fall the cost principles in 2 CFR Part 200, Subpart E. The OMB 2022 Compliance Supplement, Part 3.B. Allowable Costs/Cost Principles states under Basic Guidelines, ??.7. Be adequately documented.? Condition: The District charged the Education Stabilization Fund program $259,073. The description in the general ledger is for furniture costs for the middle school and high school construction project. The District was unable to provide documentation supporting the amount charged and could not provide documentation of furniture purchases for this project. Cause: A journal entry was posted to allocate expenditures from a non-federal project code to the project code assigned to the Education Stabilization award. There is no documentation for the journal entry. There is no documentation for the amount charged or documentation of furniture purchases. Effect: Costs charged to the program are not properly documented. The program expenditures are not allowable costs. Questioned costs: $259,073Context: Total program expenditures are $356,885. The questioned costs represent 73 percent of the program expenditures for fiscal year June 30, 2022. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District charge the program direct costs which are specifically tied to invoices of expenditures incurred. We recommend the District require journal entries to be supported by adequate documentation such that the amounts of the journal entry can be traced to source documents.