Finding Text
2022-003- Accuracy of Reporting Expenditures Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Period of Performance Finding Type: Material weakness in internal controls over compliance Criteria: Management is responsible for accurately keeping track of expenditures charged to each grant to ensure grant funds are spent in the allowable period. Condition: During compliance testing, it was noted that expenditures were dated outside of the award period. Context: 6 transactions were charged to a grant after the grant award period ended. Cause of condition: The transactions were all obligated before the end of the grant award period, however, they were not spent. The District was attempting to comply with the previously communicated reports that they had submitted to the State that showed specific contract transactions for specific grants. After a phone call with the pass-through entity, the District was also under the impression that they wanted them to spend the rest of the grant down as quickly as they could and were lenient on the timeframe. The District had enough expenses under the same program that they were able to exchange expenses with another grant in order to be compliant with the grant period of performance. Effect of Condition: As a result of this condition, the District had to update reporting with appropriate expenditures after reports were submitted to the State. Recommendation: It is recommended that the District keeps track of the grant award period for each grant award and compares records monthly to ensure expenditures are within the period of performance.