Finding Text
2022-004 The District did not get prior approval for capital expenditures under the major program as required. Criteria Capital expenditures are subject to prior approval by the ED or the pass-through entity (for ESSER grant expenditures). The District should have controls in place to identify and ensure compliance with grant requirements relating to specific purchases. Condition During audit testing, playground equipment was found to have been expensed to the grant, without prior approval as required. Upon identification by audit staff, the expenditures were moved via client journal entry to a non-grant fund, however the control over compliance did not operate appropriately to identify that there was approval needed prior to expensing. Cause Controls not operating as designed Effect Potential for ineligible grant expenses Questioned Costs None (expenses were removed from grant fund via client journal entry) Prevalence Non-systemic Recommendations We recommend a review of controls over grant expenditures with all staff to ensure controls over compliance are operating as designed.