Finding Text
C. Findings and Questioned Costs - Major Federal Award Programs Department of Education Questioned Costs 2022-007 Federal Financial Reporting None Significant Deficiency Criteria: Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. One of the components of an effective system of internal control over financial reporting is the subsequent review and approval of grant reporting to grantor agencies. Condition: The District did not have supporting documentation that indicated reporting of federal grant expenditures were reviewed and approved by management. Effect of Condition: It is possible that errors in financial grant reporting could occur and not be prevented or detected. Cause of Condition: Due to turnover, the District was operating without a finance director for the period March through July. Recommendation: We recommend that District implement procedures that establish that all federal grant reports be reviewed and approved by management. Management Response and Corrective Action Plan: Management recognizes that there is an inherent and elevated risk associated with vacancies in key positions and inexperienced key personnel in certain positions. At present, all key positions are filled, and personnel are fully participating in NDE sponsored projects including program compliance monitoring, technical assistance support and evaluation studies as required. Two of the District?s Top Priorities are recruiting, retaining, and training (including cross-training in basic duties) essential personnel and updating policies, procedures and ARs to ensure internal controls and fiscal responsibility.