Finding 504787 (2024-001)

Criteria - Federal expenditures should be claimed in the period in which they are incurred to ensure proper cutoff; Condition - The District claimed a FY 2025 expenditure on its 2024 I.D.E.A Flow Through claim for FY 2024; Questioned Costs - The questioned cost is $17,200; Context - The lack of proper cutoff could cause an otherwise allowable cost to become a questioned cost if not reported in the proper period; Effect - Proper cutoff was not achieved; Cause - Improper processing of a purchase order in advance of the cost being incurred caused the expenditure to be claimed in advance of the cost being incurred; Recommendation - Management should implement a more thorough review of the claim reports to ensure proper cutoff is maintained; Management's response - Management agrees with this finding. Management is in the process of implementing a more thorough review of the claim reports to ensure proper cutoff is maintained.