Finding 615210 (2022-003)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-01-09

AI Summary

  • Core Issue: Ineffective internal controls allowed unallowable charges to the Emergency Connectivity Grant Fund due to misrecorded receipt dates of iPads.
  • Impacted Requirements: The financial statements were misstated, affecting the accuracy of expenditures and accounts payable.
  • Recommended Follow-Up: Ensure that receiving documentation is submitted with invoices and provide staff training on year-end expenditure recording.

Finding Text

AL 32.009 Emergency Connectivity Grant Fund (ECF), Federal Communications Commission, Award ID: ECF202115047 , Award Year: July 1, 2022 ? June 30, 2022. Criteria: Internal controls over compliance were not effective to prevent or detect in a timely manner unallowable amounts being charged to the federal program. Condition and context: Bend-La Pine Schools submitted reimbursement claims for iPads, which included one shipment of iPads that was received in June 2021. Cause: The iPad shipment was received at Bend-La Pine Schools? warehouse on June 28, 2021, based on delivery receiving documents, but were not received in the technology department until after July 1, 2022. The technology department employee recorded receipt of the iPads as July 2021 in error and reflected this with a handwritten note of the receipt date of ?July 2021? on a copy of the purchase order. Receiving documents were not submitted to the Business Office. Effect: Costs were charged to the program which were not allowable under the terms of the program. Additionally, the financial statements as of June 30, 2021 were misstated as the full amount of the invoice should have been included as an expenditure and accounts payable in the financial statements, however the misstatement was not overall material to the financial statements for either year. Recommendation: We recommend the Business Office require receiving documentation be submitted with invoices to substantiate actual date of receipt for proper cut off at year end. Views of responsible officials: District agrees with this recommendation. We will provide staff with additional training specific to year-end expenditures and required documentation to ensure expenditures are recorded in the correct year.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $3.04M
10.553 School Breakfast Program $2.15M
32.009 Emergency Connectivity Fund $1.56M
10.558 Child and Adult Care Food Program $1.03M
84.425 Education Stabilization Fund $734,314
10.665 Grants to States $183,701
84.424 Student Support and Academic Enrichment Program $146,100
10.582 Fresh Fruit and Vegetable Program $139,426
12.U01 National Junior Rotc $116,355
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $106,764
84.365 English Language Acquisition State Grants $88,803
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $73,670
93.575 Child Care and Development Block Grant $59,510
10.579 Child Nutrition Discretionary Grants Limited Availability $44,052
84.367 Improving Teacher Quality State Grants $21,308
84.027 Special Education_grants to States $16,372
84.196 Education for Homeless Children and Youth $16,144
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $7,114
10.555 National School Lunch Program $6,722
45.310 Grants to States $6,000
84.048 Career and Technical Education -- Basic Grants to States $533
10.559 Summer Food Service Program for Children $0
21.019 Coronavirus Relief Fund $0
84.173 Special Education_preschool Grants $0
84.323 Special Education - State Personnel Development $0
84.377 School Improvement Grants $0
93.658 Foster Care_title IV-E $0