Finding Text
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425, 84.425D, 84.425U, 84.425W
Material Weakness in Internal Controls Over Compliance
Criteria: Per 2 CFR section 200.1, proper internal controls should be implemented to ensure transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.
Condition: The District recorded a duplicate deposit of $133,868 in federal funds to the general ledger.
Cause: There is a lack of reconciling the general ledger activity to the final financial reporting before submission to the Department of Elementary and Secondary Education.
Effect: Material audit adjustments were required to the District’s general ledger for financial reporting purposes. The client did not duplicate the deposit on the final financial report submitted to the Department of Elementary and Secondary Education.
Repeat Finding from Prior Year: No.
Recommendation: The District should implement a process to reconcile final financial reports to the general ledger before submission.
Views of Responsible Official: Management agrees with the finding.