Finding Text
CRITERIA/SPECIFIC REQUIREMENT:
The Regional Office of Education No. 39 (ROE) procedure requires the Regional Superintendent or the Program Director to review and approve invoices and requisitions before forwarding to the business office for processing.
The Code (2 CFR §200.303 (a)) requires the ROE to establish and maintain effective internal control over the federal award to provide reasonable assurance the ROE is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should include procedures to ensure expenditures under Federal awards are supported, reviewed, and approved.
CONDITION:
The ROE did not ensure costs or expenditures were adequately documented, reviewed, and approved to ensure allowability under the federal award.
CONTEXT:
During testing of 60 expenditures totaling $471,516, we noted eight (13%) expenditures were not signed by the Program Director or Regional Superintendent to indicate review and approval of the expenditures.
EFFECT:
Inadequate controls of expenditures may result in unallowable costs charged to the Federal award.
CAUSE:
Expenditures were not signed by the Regional Superintendent or Program Director due to oversight.
RECOMMENDATION:
We recommend the ROE ensures all expenditures are properly supported, reviewed, and approved prior to payment.
MANAGEMENT’S RESPONSE:
The ROE agrees with this finding. However, according to the ROE Employee Handbook (Fiscal Policies, page 16), updated and implemented in March 2021, monthly bills such as rent, phone, etc. did not require a requisition and were signed by the Business Manager. Reoccurring payments were approved with the contract lease agreement based on budgeted amounts.