Finding 38768 (2022-003)

AL 32.009 Emergency Connectivity Grant Fund (ECF), Federal Communications Commission, Award ID: ECF202115047 , Award Year: July 1, 2022 ? June 30, 2022. Criteria: Internal controls over compliance were not effective to prevent or detect in a timely manner unallowable amounts being charged to the federal program. Condition and context: Bend-La Pine Schools submitted reimbursement claims for iPads, which included one shipment of iPads that was received in June 2021. Cause: The iPad shipment was received at Bend-La Pine Schools? warehouse on June 28, 2021, based on delivery receiving documents, but were not received in the technology department until after July 1, 2022. The technology department employee recorded receipt of the iPads as July 2021 in error and reflected this with a handwritten note of the receipt date of ?July 2021? on a copy of the purchase order. Receiving documents were not submitted to the Business Office. Effect: Costs were charged to the program which were not allowable under the terms of the program. Additionally, the financial statements as of June 30, 2021 were misstated as the full amount of the invoice should have been included as an expenditure and accounts payable in the financial statements, however the misstatement was not overall material to the financial statements for either year. Recommendation: We recommend the Business Office require receiving documentation be submitted with invoices to substantiate actual date of receipt for proper cut off at year end. Views of responsible officials: District agrees with this recommendation. We will provide staff with additional training specific to year-end expenditures and required documentation to ensure expenditures are recorded in the correct year.