Finding 580919 (2023-003)

Finding: 2023-003 – Federal Assistance Listing Number, Federal Agency, and Program Name – 84.425C, 84.425U & 84.425D, Education Stabilization Fund, U.S. Department of Education Finding Type – Significant Deficiency (Uniform Guidance). Criteria – The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition – The District incurred the expenditures but was unable to bridge the accounting records supporting the transactions requested upon by the auditor in a timely manner. Questioned Costs – None Context – The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause – The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect – Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation – For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response – The District has already implemented a policy that the support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.