Finding Text
Criteria: For good internal controls, expenditures should be authorized. Documentation of supervisory approval should also be retained for all expenditures. Condition: According to the District, the Superintendent reviews all expenditures and supporting documentation before payment is authorized. However, there is no documentation of this review. Questioned Costs: None Context: Total expenditures of the grant were $323,364 for the year ended June 30, 2022. Effect: Increases the risk that inappropriate expenditures could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test determined that four out of ten expenditures did not have supervisory approval. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment. Recommendation: We recommend the District provide proper documentation of the Superintendent's approval for payment of invoices. Management's Response: The Superintendent will begin noting his approval by signing all invoices that are not accompanied by an approved purchase order.