Finding Text
Criteria: Financial reports requesting reimbursement of expenditures should reconcile to accounting records. Condition: During our audit testing of the expenditure reimbursement request reports, we noted the accounting records indicated less expenditures incurred than what was requested on the report. Questioned Costs: $20,890. Context: The District inadvertently included project expenditures spent in the prior fiscal year as current fiscal year expenditures. Reimbursement for those expenditures was requested in the prior fiscal year, therefore, those expenditures were overreported project costs. Effect: The District inadvertently reported certain expenditures twice for the same grant project resulting in an overreporting of project expenditures of $19,890 during the fiscal year ended June 30, 2022. Cause: The District did not implement a procedure to reconcile total project costs per its accounting records to total project costs per grant expenditure reports for grants that spanned across multiple years. Recommendation: It is recommended the District establish procedures to reconcile total project costs per District accounting records tot total projects costs per grant expenditure reports. This reconciliation procedure should include all project costs for the entire project history. Management's Response: There is no disagreement with this audit finding or amount of questioned costs.