Finding Text
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.