FAC Explorer

Finding 7835 (2023-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-01-08
Audit: 10167
Organization: Selinsgrove Area School District (PA)
Auditor: Zelenkofske Axelrod LLC

AI Summary

  • Core Issue: Two out of 40 transactions in the Child Nutrition Cluster lacked proof of approval before payment, indicating a gap in internal controls.
  • Impacted Requirements: The District must ensure effective internal controls as per 2 CFR part 200 section 303 to manage Federal awards properly.
  • Recommended Follow-Up: The District should enhance its internal control procedures and utilize its financial accounting system to improve the approval process for disbursements.

Finding Text

Criteria: 2 CFR part 200 section 303 indicates that the District is responsible for establishing and maintaining effective internal control over the Federal award that provides reasonable assurance that the District is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During testing, it was noted that 2 of the 40 transactions selected for testing in the Child Nutrition Cluster did not have sufficient audit evidence to demonstrate they were approved prior to payment. There were no instances of noncompliance with activities allowed requirements related to the transactions selected. Cause: Controls over expenditures were not functioning as designed since purchase orders and/or invoices had no evidence of being approved due to oversight. Effect: Internal controls over this requirement were not operating effectively. Questioned Costs: None noted. Recommendation: The District should follow its established internal control procedures over activities allowed requirements. Views of Responsible Officials: The District will continue to review its internal control procedures over disbursements and increase its usage of the financial accounting system to aide in the management of the approval process prior to disbursements.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment School Nutrition Programs

Other Findings in this Audit

  • 7832 2023-001
    Material Weakness
  • 7833 2023-001
    Material Weakness
  • 7834 2023-001
    Material Weakness
  • 584274 2023-001
    Material Weakness
  • 584275 2023-001
    Material Weakness
  • 584276 2023-001
    Material Weakness
  • 584277 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $606,791
84.027 Special Education_grants to States $330,178
10.553 School Breakfast Program $128,504
10.555 National School Lunch Program $105,976
84.367 Improving Teacher Quality State Grants $82,780
21.019 Coronavirus Relief Fund $20,000
10.559 Summer Food Service Program for Children $5,646
84.425 Education Stabilization Fund $5,044
84.424 Student Support and Academic Enrichment Program $4,815
84.173 Special Education_preschool Grants $3,077