Finding Text
2022-004 ? Documentation and Internal Controls over Journal Entries Finding Type. Immaterial Noncompliance; Material Weakness in Internal Control over Compliance (Allowable Costs/Cost Principles) Federal program(s) U.S. Department of Education: COVID-19 - Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to establish internal controls over disbursements, including journal entries related to the compliance requirements applicable to allowable costs/cost provisions. The District's policies require an independent review of journal entries. Condition. Evidence of an independent review was not documented for three out of the three journal entries selected for testing. Cause. This condition appears to be the result of the District not adhering to established internal control policies and procedures. Effect. The District is at increased risk of unallowable costs being charged to federal programs without being detected by its internal controls. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend the District follow its internal control policies and procedures that require independent review of all journal entries. View of Responsible Officials. Management Concurs Responsible Official. Sharon Ramirez, Chief Financial Officer Estimated Completion Date. June 30, 2023