Finding 620241 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2022-12-21
Audit: 50791
Organization: East Jackson Community Schools (MI)

AI Summary

  • Core Issue: The same invoice for $1,944 was recorded twice, leading to unallowable costs under federal program guidelines.
  • Impacted Requirements: This finding highlights a significant deficiency in internal controls related to allowable costs as per Uniform Guidance.
  • Recommended Follow-Up: The District should enhance disbursement approval procedures to prevent double charging to grants and implement monthly budget reviews.

Finding Text

2022-003 - Allowable Costs/Cost Principles ? Disbursements Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Allowable Costs/Cost Principles) Program. Child Nutrition Cluster; ALN 10.553, 10.555, and 10.559. Criteria. Uniform Guidance ?200.403 Factors Affecting Allowability of Costs section (f)(1) requires that costs charged to federal programs not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. This principle assumes that costs also may not be charged more than once to a federal program (double counted) in order to be allowable. Additionally, Uniform Guidance ?200.400 Subpart E ? Cost Principles requires that costs charged to federal programs be consistent with the accounting policies and practices of the entity and provide for adequate documentation to support costs charged to the federal award. Costs charged twice to the same program cannot foundationally meet that standard of documentation. Condition. Of the 25 disbursement selections tested, the same invoice, in the amount of $1,944, was recorded twice. Cause. This condition was the result of a lack of internal controls in place subsequent to the entry of the expense into the general ledger. Effect. As a result of this condition, the District applied Child Nutrition Cluster funding to expenses that are unallowable under program guidelines. Questioned Costs. No costs were required to be questioned as a result of this finding. Recommendation. We recommend that the District review its procedures for approving disbursements to ensure that the same cost is not charged multiple times to the grant. View of Responsible Officials. The District will further utilize the electronic requisition system in the accounting software for purchases over $500. Furthermore, a monthly review of budget to actual results will be performed by department heads and any variances will be addressed. Responsible Official. LEA Business Manager

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 42310 2022-003
    Significant Deficiency
  • 42311 2022-003
    Significant Deficiency
  • 42312 2022-003
    Significant Deficiency
  • 43796 2022-003
    Significant Deficiency
  • 43797 2022-003
    Significant Deficiency
  • 43798 2022-003
    Significant Deficiency
  • 43799 2022-003
    Significant Deficiency
  • 43800 2022-003
    Significant Deficiency
  • 43801 2022-003
    Significant Deficiency
  • 43802 2022-003
    Significant Deficiency
  • 43803 2022-004
    Significant Deficiency
  • 43804 2022-004
    Significant Deficiency
  • 43805 2022-004
    Significant Deficiency
  • 618752 2022-003
    Significant Deficiency
  • 618753 2022-003
    Significant Deficiency
  • 618754 2022-003
    Significant Deficiency
  • 620238 2022-003
    Significant Deficiency
  • 620239 2022-003
    Significant Deficiency
  • 620240 2022-003
    Significant Deficiency
  • 620242 2022-003
    Significant Deficiency
  • 620243 2022-003
    Significant Deficiency
  • 620244 2022-003
    Significant Deficiency
  • 620245 2022-004
    Significant Deficiency
  • 620246 2022-004
    Significant Deficiency
  • 620247 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $421,582
84.010 Title I Grants to Local Educational Agencies $327,064
10.553 School Breakfast Program $163,541
84.367 Improving Teacher Quality State Grants $91,830
10.555 National School Lunch Program $29,777
10.559 Summer Food Service Program for Children $27,377
21.019 Coronavirus Relief Fund $25,551
32.009 Emergency Connectivity Fund Program $23,604
84.424 Student Support and Academic Enrichment Program $23,202
93.778 Medical Assistance Program $2,508
84.196 Education for Homeless Children and Youth $1,021
10.649 Pandemic Ebt Administrative Costs $614
10.558 Child and Adult Care Food Program $67