Finding 401294 (2023-003)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-06-20

AI Summary

  • Core Issue: The District made duplicate payments totaling $52,363 for classroom furniture, equipment, and laptops without proper documentation.
  • Impacted Requirements: Payments lacked necessary support, violating grant program rules and leading to unallowable costs reported in reimbursement requests.
  • Recommended Follow-Up: Strengthen internal controls by ensuring all disbursements are verified against purchase orders and packing slips to prevent future duplicate payments.

Finding Text

District officials should maintain internal controls ensuring all disbursements are supported by proper supporting documentation, including a unique vendor invoice and shipping documents for goods received. District expenditures totaling $46,700 for classroom furniture and equipment and $5,663 for laptops were made in duplicate and lacked proper supporting documentation. Although these payments represent unallowable costs under the grant program, the District included the duplicate payments in program costs reported on the grant expenditure reimbursements report. The District issued duplicate payments in three instances. The extra payments were based on an order acknowledgement, a double billing by the vendor, and an invoice paid by both the District and a pass-through entity. The District was able to recover $46,700 and is discussion with the subrecipient to recover the remaining $5,663. The District did not detect duplicate payment for the effected purchases and reported unallowable program costs on expenditure reimbursement request reports. The District did not match purchase order numbers or packing slips prior to processing the duplicate vendor invoice for payment.

Categories

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management Equipment & Real Property Management

Other Findings in this Audit

  • 401291 2023-003
    Material Weakness
  • 401292 2023-004
    Material Weakness
  • 401293 2023-005
    Material Weakness
  • 977733 2023-003
    Material Weakness
  • 977734 2023-004
    Material Weakness
  • 977735 2023-005
    Material Weakness
  • 977736 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $283,745
84.010 Title I Grants to Local Educational Agencies $60,554
10.553 School Breakfast Program $24,901
93.778 Medical Assistance Program $7,073
84.358 Rural Education $4,836
84.027 Special Education_grants to States $3,620
84.424 Student Support and Academic Enrichment Program $1,399
10.555 National School Lunch Program $1,398
84.173 Special Education_preschool Grants $934
10.649 Pandemic Ebt Administrative Costs $628
84.173 Special Education_grants to States $358