Finding Text
Condition The School Board did not report expenditures in the amount of $1,403,046 for the ESSERF II Formula grant on its Schedule of Expenditures of Federal Awards for the year ending June 30, 2021. Criteria OMB Circular A-133, section 205(a) states that ?determination of when a Federal award is expended should be based on when the activity related to the award occurs.? Additionally, OMB Circular A-133, section 300(d) states that ?the auditee shall prepare appropriate financial statements, including the schedule of expenditures in Federal awards.? Cause The School Board did not have internal control policies and procedures in place to properly track reimbursable expenditures in order to recognize them as federal expenditures in the year in which they were incurred. Effect The School Board did not properly report expenditures on the Schedule of Expenditures of Federal Awards. Context The School Board did not properly identify all federal expenditures in the year incurred. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are accurately tracked and captured for proper presentation within the Schedule of Expenditures of Federal Awards. Views of Responsible Officials and Planned Corrective Action Accountants shall receive training to ensure all related expenditures are reported on the Schedule of Expenditures of Federal Awards (SEFA) in each respective year. Each Accountant will review their respective grant expenditures and ensure that all applicable expenditures are recorded properly for accuracy and completeness. A second reviewer will ascertain the accuracy of the recorded expenditures on the SEFA.