Finding Text
Federal Grants Management - Allowable Costs/Cost Principals, Cash Management, Procurement, and Reporting Federal Assistance Listing Number - All Type of Finding: Significant deficiency in internal control over compliance. Condition: The District has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the District are managed through these district-wide policies and procedures had not been evaluated to ensure compliance with the requirements of Uniform Guidance as of year-end. Criteria or specific requirement: Uniform Guidance requires the County to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Cause: The District has begun but not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end. Effect: The District could become noncompliant with requirement of Uniform Guidance, resulting in future findings and questioned costs related to federal awards administered by the District. The District's 2019 audit in accordance with the requirements of Uniform Guidance did not identify an instances of noncompliance with respect to direct and material compliance requirements of its major federal award program. Recommendation: We recommend the District continue the process in assessing its financial management systems and related internal controls over federal awards during the 2023 fiscal year. This assessment should include evaluating existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to District employees, and procedures to periodically review and update, as considered necessary. Questioned Costs: None Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.