Finding Text
Condition: The District did not amend grant budgets with the grantor agency before spending. Elementary and Secondary School Emergency Relief Fund II was overspent on two budget line items. Elementary and Secondary School Emergency Relief Fund III was overspent on two budget line items. ARP Homeless Children and Youth HCY I was overspent on one budget line item. Criteria: The District is responsible for having a system of controls to ensure compliance with budget requirements of the grantor agency and for monitoring of expenditures against approved budgets. Cause: The District did not have a control process to summarize grants expended over multiple fiscal years against original budgets. Current year budgets in district software were not moified to represent the remainder of spending by budget line. While the District was working with the granting agency on allowed spending and discussed amending the budgets, the budgets were not amended prior to the spending. Effect: Federal expenditures for disallowed activities could occur if budgets are not approved in advance and spent accordingly. Recommendation: The District should implement controls to prevent obligation or spending that would cause the categorical budget to be exceeded without first securing an approved budget amendment. Further, the District should implement controls to monitor that only costs to be claimed on federal grants are being coded to those functions.