Finding Text
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.