Finding Text
CONDITION: During the 2022 audit, Marion County School District (the "School District") accrued one item related to technology and supplies that should not have been accrued at June 30, 2022, and which also overstated revenue for federal programs. The School District corrected this by recording an adjusting entry to decrease accounts payable and related expenses (all of which involved federal funds) by approximately $202,000 as of June 30, 2022. CRITERIA: The School District should have an effective system of internal controls in place to ensure all accounts payable accruals and federal revenues are properly recorded. CONTEXT,CAUSE and EFFECT: Turnover in the School District's finance department caused disruptions in the financial operations. The Interim Finance Director left in the middle of the year and a new Finance Director started at the District in April 2022. There was a new set of controls put into place with different employees completing tasks from the previous year. In this instance, there was an error in reviewing the invoice and, as a result, it was not recorded in the correct fiscal year, which also impact the recognition of federal revenues. RECOMMENDATION: We recommend that the School District review all liability and revenue accounts, specifically the accrued liability and federal revenue accounts, and compare the balances to supporting documents and subsequent payments to ensure that all accrued liabilities and federal revenues have been properly recorded. RESPONSE: The School District agrees with this finding and will adhere to the corrective action plan on page 114 in this audit report