Finding Text
FIndiog 2023-02 - Material Weakness io internal Control over ESSER Fund Ill of the American Rescue Pian
Criteria
The District should maintain adequate internal control over financial reporting and federal compliance to
to ensure accurate reporting in the District's financial statements and compliance with program requirements.
Conditiion
The District's lack of documented control procedures resulted in the District reporting $44,594 of payroll cost
in excess of the ESSER Ill Fund's budgeted payroll cost of $293,629 on the expenditure report to the TEA
dated August 12, 2023.
Cause
The District did not maintain written internal control procedures over all relevant financial reporting and
compliance areas.
Effect
Because the District lacked written policies and procedures the District is more susceptible to deficiencies
in financial reporting and compliance with laws and regulations.
Recommendation
We recommend that the District prepares a set of written policies and procedures of internal controls that
they follow to assure a high level of assurance that financial amounts are accurate and the District is in
compliance with applicable laws, regulations and policies.