Finding 3654 (2023-001)

CRITERIA: Financial reports requesting reimbursement of expenditures should reconcile to accounting records. CONDITION: During audit testing of the expenditure reimbursement request reports, it was noted the accounting records established for accounting of ESSER grants funding did not match the reimbursement request reports. QUESTIONED COSTS: $0. CONTEXT: The Distict utilitzes an internally generated Excel spreadsheet to prepare expenditure reimbursement request reports. This spreadsheet is not reconciled to the District's accounting records for each grant. EFFECT: The lack of reconciliation may cause inaccurate reporting of grant expenditure reimbursement request reports in amounts significant to the financial statements. Differences between expense reimbursement request reports and accounting records in the current year were inconsequential. CAUSE: The District did not implement a procedure to reconcile total grant expenditure reimbursement request reports to total grant project costs per accounting records. RECOMMENDATION: It is recommended the District establish procedures to reoncile total project costs per District accounting records to grant expenditure reimbursement request reports prior to filing the reimbursement request report. MANAGEMENT'S RESPONSE: Management is in agreement with this finding.