Finding 513807 (2024-002)

Finding 2024-002 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Elementary-Secondary School Emergency Relief Programs ALN: 84.425 Pass-through Award Number: ER 24.HGSD.01 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: The District was unable to provide supporting documentation for all credit card transactions charged to the grant. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs are $10,611. This is the total balance of purchases made on the district’s credit card charged to the grant. Repeat Finding: Yes, this is a repeat of Finding 2023-004. Since this is a repeat finding, we believe this to be a systemic issue. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.