Finding 51758 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-14

AI Summary

  • Core Issue: The District is not reconciling federal grant activity regularly, leading to delays in reimbursement requests.
  • Impacted Requirements: Compliance with reporting requirements for the Education Stabilization Fund (ALN: 84.425D) is not being met due to lack of formal processes.
  • Recommended Follow-Up: Implement a formal review process for grant funds and cross-train staff to ensure continuity and timely drawdowns.

Finding Text

2022-003 ? Significant Deficiency ? Education Stabilization Fund ? Reporting Compliance Requirement: Reporting (L) ALN: 84.425D Criteria: The District is required to frequently reconcile federal grant activity, this includes comparing allowable costs against drawn down requests. Furthermore, the District should submit requests for reimbursement in a timely manner to limit the amount of funds borrowed from other funds. Condition: During our audit, we are required to test the authenticity and completeness of the federal drawdowns. However, as a result of the District being behind in preparing draw down requests there were no reimbursements to test. Additionally, we noted that the business office did not have a formal review or reconciliation process in place related to grant funds. Questioned Costs: -0- Cause and Effect: Turnover in the business manager position led to the District falling behind in many administrative duties, such as drawing down federal funds and reconciling grant activity. At year end the District had a large grant receivable Balance, accordingly, the Grant Fund was required to borrow from other funds. Recommendation: We recommend that the District continue to review, develop and implement a formal processes to ensure grant funds are drawn down and reconciled frequently. Additionally, the District should continue to focus on cross training employees in an effort to help with continuity in the event of staff turnover. View of responsible Officials and planned Corrective actions: Please see the last page, for management?s response as prepared on District letterhead.

Categories

Cash Management

Other Findings in this Audit

  • 51755 2022-003
    Significant Deficiency
  • 51756 2022-003
    Significant Deficiency
  • 51757 2022-003
    Significant Deficiency
  • 51759 2022-003
    Significant Deficiency
  • 51760 2022-003
    Significant Deficiency
  • 51761 2022-003
    Significant Deficiency
  • 628197 2022-003
    Significant Deficiency
  • 628198 2022-003
    Significant Deficiency
  • 628199 2022-003
    Significant Deficiency
  • 628200 2022-003
    Significant Deficiency
  • 628201 2022-003
    Significant Deficiency
  • 628202 2022-003
    Significant Deficiency
  • 628203 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $340,786
10.553 School Breakfast Program $84,911
10.555 National School Lunch Program $33,133
84.027 Special Education_grants to States $30,777
84.367 Improving Teacher Quality State Grants $28,530
10.556 Special Milk Program for Children $22,735
84.424 Student Support and Academic Enrichment Program $21,906
84.425 Education Stabilization Fund $13,552
10.582 Fresh Fruit and Vegetable Program $10,656
84.173 Special Education_preschool Grants $5,922
84.048 Career and Technical Education -- Basic Grants to States $5,065