Finding Text
Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with
Laws and Regulations and Other Matters (Uniform Guidance)
Criteria The District is required to provide an accurate listing of federal grants to prepare the
District’s Schedule Expenditures of Federal Awards.
Condition During the audit, the District provided a listing of federal grants that was incorrect
to the District’s external auditors. By doing this the District’s federal grants listing
was incomplete and incorrect causing the auditor’s preliminary major program
determination to be incorrect. If this was not discovered by the District’s external
auditors, the incorrect major program would have been tested creating an audit
failure.
Questioned Costs None
Cause The District had multiple mispostings in the federal award accounts which affected
the District’s preliminary Schedule Expenditures of Federal Awards.
Effect Without the correct federal expenditures listing, there is a risk that a major program
would be missed.
Recommendation We recommend that the District review the federal revenue accounts compared to
the District’s Grant Auditor Report, Berrien RESA report, and other federal grant
documents while preparing the District’s Schedule Expenditures of Federal Awards.
The District should also compare the District’s federal expenditures in the District’s
general ledger. Any reconciling items between the revenue and expenses should be
reconciled and accounted for.
District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant
Auditor Report, Berrien RESA report, and other federal grant documents and
reconcile to federal grant expenditures in the District’s general ledger when
preparing the District’s Schedule of Federal Awards.