Finding 592762 (2022-005)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: The District lacks documented policies and procedures for managing federal grants.
  • Impacted Requirements: Internal controls over federal grants are insufficient, increasing the risk of misstatements in financial reports.
  • Recommended Follow-Up: The District should collaborate with auditors to create and implement written grant procedures that comply with Uniform Guidance.

Finding Text

2022-005 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The District does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedule of expenditures of federal and state awards is high. Auditor's Recommendation: We recommend that the District works on written policies and procedures over grants and grant expenditures. Management Response: The District will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 16319 2022-004
    Material Weakness Repeat
  • 16320 2022-005
    Material Weakness Repeat
  • 16321 2022-006
    -
  • 16322 2022-007
    -
  • 592761 2022-004
    Material Weakness Repeat
  • 592763 2022-006
    -
  • 592764 2022-007
    -

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $1.33M