Finding Text
Criteria or Specific Requirements
Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records
and supporting documents pertinent to a Federal award must be retained for a period of three
years from the date of submission of expenditure reports to the awarding agency or
passthrough entity.
Condition
The District was unable to provide financial records or supporting documents for all
expenditures charged to Special Education resources.
Questioned Costs
The condition identified above resulted in known questioned costs of $50,735 and likely
questioned costs of $35,099.
Context
The condition was identified by reviewing all 6 expenditures charged to the program which
included 2 non-payroll expenditures, 1 transfer of expenditures, and 3 employee salaries. We
have determined that the District was unable to provide support for all transactions and noted a
known questioned costs of $50,735. The likely questioned costs $35,099 were attributed to
fringe benefits that were associated with employee salaries charged to the program.
Effect
The District has not complied with the requirements identified in Title 2, Code of Federal
Regulations, Part 200.333.
Cause
The identified condition appears to have materialized due to insufficient procedures related to
the retention of financial records.
Repeat Finding
No.
Recommendation
The District should ensure that all federal expenditures are supported by financial reports. These
records should be maintained for a period of three years from the date the expenditure is
incurred.
Corrective Action Plan and Views of Responsible Officials
The District will maintain supporting documentation for the use of federal funds.