Finding 48326 (2022-003)

Finding 2022-003 Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: US Treasury Federal Programs: COVID 19- Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: ER 22.YFSD.01 Award Years: 2022 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Reporting requirements state that quarterly financial reports must be submitted within 30 days of the end of the quarter. The Fort Yukon School District is required to provide quarterly reimbursement request reports that contain program related costs incurred during the covered period. Condition and Context: Two quarterly reports were tested for the reporting requirements of the program. It was noted that the Fort Yukon School District did not adhere to quarterly reporting requirements specified in the grant agreement. Cause: Lack of internal controls related to reporting requirements. Effect: The Fort Yukon School District was not in compliance with reporting requirements which could cause a decrease in funding. This could also result in lack of reimbursement of expenditures already incurred by the program. Repeat Finding: This was not a repeat finding for this program, therefore we believe this to be an isolated issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management put internal controls in place over reporting to ensure they comply with reporting requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.