Finding Text
Finding 2023-005 Lack of Internal Control / Noncompliance over Subrecipient Monitoring
Material Weakness
Material Noncompliance
Federal Agency: U.S. Department of Education
Federal Program: School Safety National Activities
ALN: 84.184
Award Numbers: S184G190154-23
Award Years: 2023
Type of Finding: Material weakness in internal control over compliance and material noncompliance.
Criteria: Subrecipient monitoring principles are defined in 2 CFR 200.400.
Condition and Context: We selected 2 of the subrecipients that received pass thru funds. The District did not provide supporting documentation ensuring that adequate subreciepient monitoring activities were being followed.
Cause: Lack of internal control over subrecipient monitoring.
Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the subrecipient is not allowed.
Questioned Costs: Actual and likely questioned costs estimated to be above the reporting threshold of $25,000. Based on the auditor’s review of program expenditures provided by the District, we estimate that the amount charged by subrecipients to the District was $184,651.
Repeat Finding: No. We believe this to be an isolated issue due to employee turnover.
Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and to ensure that subreipients are appropriately spending passed through federal money.
Management’s Response: Management agrees with this finding. See Corrective Action Plan.