Finding Text
2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.