Finding Text
Finding #2024-005 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: All programs. Criteria: Schedule of Expenditures of Federal Awards – In accordance with the Uniform Guidance §200.508 and §200.510, management is to prepare a schedule of expenditures of federal wards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended. Condition and context: The School did not include the Student Support and Academic Enrichment Program on the SEFA for fiscal year 2024 and had not performed a reconciliation of federal expenditures to federal program revenue. In our testing of the review and approval of the federal grant billings for the Child Nutrition Cluster and the Special Education Cluster there was no evidence of review and approval of the request for payment from a person independent of the preparation process and as a result of the failure to reconcile revenue to expenses an overbilling of the Special Education Cluster of approximately $19,000 was identified. The School has mitigating controls through a formalized review of the budget to actual for the month and year-to-date by campus and major departments. Significant variances are investigated by the Financial Analyst and the Headmasters or Department Heads. Cause: The School failed to have procedures in place to identify and reflect all federal grants on the SEFA, have timely procedures to reconcile the federal expenditures to the federal program revenue, and have an independent review of grant billing. Effect: A federal program with approximately $55,000 of expenditures was omitted from the SEFA and the revenue for the Special Education Cluster was overstated by approximately $19,000. Recommendation: Develop policies and procedures to identify and reflect all federal programs on the SEFA, reconcile the federal expenditures to the federal program revenue on a routine basis, and formalize the independent review process for the SEFA and grant billings. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.