Finding Text
Federal Program
84.425 – Education Stabilization Fund
Allowable Costs/Activities Allowed
Criteria
The District is required to maintain internal controls at a level where proper review and approval
of journal entries are met.
Condition
We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came
from 5 journal entries, which we noted were not approved by an individual outside of the journal
entry preparer.
Cause
The District experienced turnover in the accounting department.
Questioned Costs
None
Context
The District did not ensure journal entries were reviewed and approved by a separate individual.
Effect
The District was had an increased risk of improper journal entries being made to federal funds.
Repeat Finding
No
Recommendation
The District should ensure all journal entries are reviewed and approved.
Views of Responsible Officials
The District will ensure all journal entries are reviewed and approved.