Finding Text
Criteria: For good internal controls, expenditures should be authorized. Documentation of supervisory approval should also be retained for all expenditures. Condition: According to the District, the Superintendent reviews all expenditures and supporting documentation before payment is authorized. However, there is no documentation of this review. Questioned Costs: None. Context: Total expenditures of the program were $794,301 for the year ended June 30, 2022. Effect: Increases the risk that inappropriate expenditures could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 12 expenditures and 10 did not have documentation of supervisory approval. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment. Recommendation: We recommend the District provide proper documentation of the Superintendent's approval for payment of invoices. Management's Response: The Superintendent will begin noting her approval with her initial on all invoices.