Finding 520045 (2024-003)

Finding No. 2024-003: Grant Tracking Federal Program Affected: Office of Local Defense Community Cooperation, ALN #12.618 Compliance Requirement: Cash Management, Period of Performance Questioned Costs: None. Condition and Cause: The District did not have a process in place to ensure proper cut-off of grant expenditures on the Schedule of Expenditures of Federal Awards (SEFA). Expenditures beyond the fiscal year and period of performance of the grant were reported on the 2024 SEFA. Criteria and Effect: Per the Office of Management and Budget's (OMB) requirements, only expenditures incurred during the reporting period should be included on the SEFA. The Office of Local Defense Community Cooperation program was tested as a major program in 2023 and 2024. The cut-off errors identified did not impact the major program determination in either year. Improper tracking and reporting of grant expenditures could result in a material misstatement to the SEFA, questioned costs, and noncompliance. Repeat Finding from Prior Year: No. Recommendation: The District should ensure only expenditures actually incurred during the reporting period and period of performance of the grant are included on the SEFA. The District should communicate with the federal agency regarding federal reimbursements received for expenditures outside the period of performance. Response/Corrective Action Plan: Management is in agreement with the finding. See Corrective Action Plan.