Finding Text
Material Weakness/Material Non-Compliance Finding 2022-002: Accounts payable testing and internal controls. U.S. Department of Education Passed-through Mississippi Department of Education Program Name: Elementary and Secondary School Emergency Relief I, II & ARP (ESSER) Program Assistance Listing Numbers: 84.425D & 84.425U Compliance Requirement: Allowable Costs/Cost Principles; Procurement CRITERIA: Recipients of federal funds must follow the same State requirements for procurement of goods and services that apply to non-federal funds. CONDITION: During our testing of 20 invoices, we noted 10 instances where the district approved purchased orders for various equipment, supplies and services The expenditures do appear to be for allowable costs and activities under the ESSER grants. However, the district was unable to provide evidence that a required second quote and or proposal was obtained. CONTEXT: The school district did not follow requirements related to procurement of goods and services. CAUSE: The cause is a result of not properly implementing a designed system of accounting and internal controls. EFFECT: Noncompliance with state and federal purchasing laws. IDENTIFICATION OF REPEAT FINDING: No. QUESTIONED COSTS: None RECOMMENDATION: The school district should implement policies and procedures to ensure all applicable compliance requirements are being met. VIEWS OF RESPONSIBLE OFFICIALS: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with state and federal purchasing requirements.