Finding Text
Criteria or specific requirement (including statutory, regulatory, or other citation) - The Code of Federal Regulations (CFR) Title 2, part 200.305(b)(3) states that non-federal entities must disburse funds for program purposes before requesting payment from the federal awarding agency or pass-through entity. Condition - The District does not have internal controls in place to prevent expenditure reports being submitted that include expenditures that have not been spent, committed, or obligated. Questioned Costs - None. Context - The District did not implement adequate internal controls to ensure expenditure reports include only expenditures that have been spent, committed, or obligated. Effect - The District may receive grant disbursements prior to having the expenditure to support the request for disbursement. Cause - Due to the District's understanding that the project would be completed prior to year end no change to their expenditure report was made. Recommendation - The District should implement internal controls that verify all expenditure reports include only amounts expended or committed or obligated. Management's Response - There is no disagreement. The District will implement internal controls to ensure expenditure reports are being submitted accurately.