Finding 404 (2023-007)

Finding Number: 2023-007. Criteria or specific requirement: Adequate financial records should be maintained in accordance with 2 CFR 200.302(b)(3). Condition: The District did not maintain adequate financial records in accordance with 2 CFR 200.302(b)(3). Context: Grant expenditures were coded to the incorrect general ledger accounts. Effect: Due to grant expenditures being coded to the incorrect general ledger accounts, adequate financial records were not maintained in accordance with 2 CFR 200.302(b)(3). Cause: Grant expenditures were coded to the incorrect general ledger accounts. This resulted in inadequate financial records. Recommendation: The District should maintain adequate financial records capable of adequately identifying the source and application of grant funds in accordance wtih 2 CFR 200.302(b)(3). Management's Response: The District will work to maintain records capable of adequately identifying the source and application of grant funds.