Finding 386837 (2023-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The District lacks controls to ensure that expenditure reports only include funds that have been spent, committed, or obligated.
  • Impacted Requirements: This violates CFR Title 2, part 200.305(b)(3), which requires funds to be disbursed only after expenditures are made.
  • Recommended Follow-Up: The District should establish internal controls to verify that all expenditure reports are accurate and compliant.

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 or 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 or 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 construction in progress would be completed prior to year end and the expenditures would be incurred. Recommendation - The District should implement internal controls the verify all expenditure reports include only amounts expended, committed, or obligated. Managment's response - There is no disagreement. The District will implement internal controls to ensure expenditure reports are being submitted accurately.

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 - Education Stabilization Fund $462,531
84.010 Title I Grants to Local Educational Agencies $74,201
84.027 Special Education_grants to States $73,485
84.358 Rural Education $18,227
10.553 School Breakfast Program $17,124
84.367 Improving Teacher Quality State Grants $10,970
84.424 Student Support and Academic Enrichment Program $10,430
10.560 Covid-19 - State Administrative Expenses for Child Nutrition $7,092
93.778 Medical Assistance Program $5,116
10.558 Child and Adult Care Food Program $3,509
10.555 National School Lunch Program $3,052
84.173 Special Education_preschool Grants $1,764
10.649 Covid-19 - Pandemic Ebt Administrative Costs $628