Finding 2024-001: Late Submission of Reports
Audit Finding: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely
Audit Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports.
Management’s Response
and Corrective Action Plan: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation. Late submissions occurred due to delays in responses from the grantor and verbal approval of changes in due dates from the grantor. Management will be more proactive in documenting communication regarding reports to ensure that, if they are submitted late, there is clear evidence of approved date modifications, why and what date they were initially submitted. Management is now aware that the grantor’s system only reflects the final submission date once approved, not the initial submission date for reports that required modification at the request of the grantor. To address this, School District 12 Education Foundation (dba Five Star Education Foundation) will implement a process to document the initial submission date along with any backup documentation of delays, including communications with Adams County or other relevant parties. Additionally, Adams County has a clear policy that while timely submission of reports is required by the original grant agreement, grantees who communicate a need for additional time by the 15th of the month are considered compliant. Adams County also noted that, based on School District 12 Education Foundation (dba Five Star Education Foundation’s) history and previous communications, they would not consider this a finding or an indicator of poor performance. Moving forward, School District 12 Education Foundation (dba Five Star Education Foundation) will ensure that any anticipated delays are formally communicated to Adams County in writing (not verbally) before the due date and that records of these communications are retained for audit purposes.
Contact and Completion Date: Shannon Hancock, 720-972-4342, shannon.hancock@5starfoundation.org, is the primary contact, and the Executive Director at School District 12 Education Foundation (dba Five Star Education Foundation). The corrective action is already in place and active as of this audit.