Finding 558142 (2024-003)

2024-003 Internal Controls over Preparation of the District’s Schedule of Expenditures of Federal Awards Condition: During the fiscal year ended June 30, 2024, components of the Schedule of Expenditures of Federal Awards (SEFA) were provided; however, a complete and accurate SEFA was not available for audit. Criteria: Prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA), in accordance with federal OMB Uniform Guidance §200.510 Financial Statements. Effect: Lack of adequate controls over financial reporting of federal expenditures resulted in the inability to provide a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Accuracy of the SEFA is essential for selecting and testing major programs in accordance with OMB Uniform Guidance. Incomplete or inaccurate reporting may lead to improper selection and testing of compliance for major programs, potentially affecting the audit's reliability. Recommendation: We recommend that the District strengthen its policies and procedures to ensure that all federal expenditures are reported to one party within the District and that the one responsible party prepare an accurate, comprehensive list of federal revenues and expenditures for each fiscal year within 90 days of the fiscal year end. Response: The District agrees with the recommendation. Management will strengthen its policies and procedures to ensure that all federal expenditures are reported to one party within the District, and one responsible party will prepare an accurate, comprehensive list of federal revenues and expenditures for each fiscal year within.