Finding Text
Criteria - The District's internal control over financial reporting should ensure that reimbursement requests are supported by cumulative general ledger reports. Condition - The District's reporting process duplicated certain costs and over-reported expenditures by $54,010 on the final claim request made for the year ended August 31, 2022. Cause - The District had staff turnover within the business office that affected the reporting process. A cumulative general ledger report was not utilized to match up to the claim reimbursement request. Effect - The reimbursement grant reported an excess of revenues over expenditures of $34,059 after deduction of an additional $19,951 of expenditures incurred subsequent to the last expenditure reimbursement request for the year. A net audit adjustment of $34,059 was proposed to balance revenues with expenditures for the fiscal year ended August 31, 2022. Recommendation - We recommend that the CFO review all grant reimbursements and compare to cumulative general ledger reports. Furthermore, as part of the year end close out process, the CFO should ensure that any accruals, or deferrals, of revenue necessary to balance revenues with expenditures are posted. Views of Responsible Officials and Planned Corrective Actions - Refer to the Corrective Action Plan prepared by District's management.