Finding Text
2023-003 Check Issued for a Materially Misstated Amount Statement of Condition: A check for $5,872.00 was incorrectly written and sent to the vendor for $58,720.00. Criteria: Checks should be written for the amount of the invoice and approved prior to mailing. Cause: New personnel did not follow proper internal controls in place and failed to compare the check written to the actual invoice prior to mailing. Effect: The effect could be misappropriation of funds with the refund of the excess amount, non-compliance with grant requirements, or misappropriation of funds by the vendor. Questioned Costs: The amount of questioned costs is $52,848. Perspective Information: This is a new issue that will not happen again with proper training. Identification of Repeat Findings: This appears to be an isolated instance. Recommendation: Follow internal controls already in place, double check work prior to finalizing, and provide education to the personnel on the proper procedures and internal controls. Views of Responsible Official and Planned Corrective Actions: We concur with the recommendation. Also, we believe that this was an isolated occurrence and personnel changes have been made. 2023-003 Check Issued for a Materially Misstated Amount Elementary and Secondary School Emergency Relief Assistance Listing No. 84.425U (Covid Grant) Material Weakness: As discussed at Finding 2023-003, a check for $5,872.00 was incorrectly written and sent to the vendor for $58,720.00. Item was discovered through the audit process and was corrected with the incorrect check being voided and a check for the correct amount being reissued. Since it was discovered through the audit, it is not determined if the item would have been discovered by other District personnel through future procedures. Internal control procedures are in place to prevent this but was circumvented by new personnel. Proper training on the internal control procedures should be provided, overseen, and required for all new personnel.