Finding Text
Criteria: Financial reports requesting reimbursement of expenditures should reconcile to accounting records. Condition: During our audit testing of expenditure reimbursement request reports, we noted the accounting records did not agree to the expenditure reimbursement request reports for various line items. Expenditure reimbursement request reports reflected expenditures in different accounting functions and line items that accounting records. Questioned Costs: $7,971. Context: The District did not use accounting software functionality to track program expenditures for this program. The District maintained a separate spreadsheet for program expenditures that did not agree entirely to accounting records. Effect: The District overreported employee benefits on expenditure reimbursement request reports, and the expenditure reimbursement request reports were difficult to reconcile to accounting records and misreported in terms of accounting function and object code. Cause: The District did not implement accounting software functionality that would have provided accurate reports in which to prepare expenditure reimbursement request reports. Recommendation: It is recommended that the District implement its accounting software functionality, specifically the usage of responsibility codes, to track program costs and prepare expenditure reimbursement request reports for this program. Management's Response: Management agrees with this finding and will implement the usage of responsibility codes for this program in the future.