Finding Text
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.