Finding Text
Schedule Expenditures of Federal Awards
U.S. Department of Education
Passed-through Mississippi Department of Education
Program Name: Elementary and Secondary School Emergency Relief ARP (ESSER)
Program ALN: 84.425U
Compliance Requirement: Allowable Costs/Cost Principles
CRITERIA: The schedule of expenditures of federal awards should include all expenditures incurred by the district in relation to federal grants and awards.
CONDITION: During our testing of cutoff surrounding accounts payable, we noted errors in recording construction and retainage payable on construction contracts. These errors, totaling $440,636, were corrected by audit adjustment.
CONTEXT: The school district failed to properly account for all expenditures incurred in relation to its federal grants.
CAUSE: The cause is a result of not properly implementing a designed system of accounting and internal controls.
EFFECT: The effect of this condition could result in the schedule of Expenditures of Federal Awards being materially misstated.
IDENTIFICATION OF REPEAT FINDING: No.
QUESTIONED COSTS: None
RECOMMENDATION: It is recommended that the district implement policies or procedures to establish an internal control system that will ensure strong financial accountability and accurate accounting records.
VIEWS OF RESPONSIBLE OFFICIALS: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and accurate accounting records.