Finding 9444 (2023-003)

Finding No. 2023-003: SEFA Adjustments Federal Program Affected: Office of Local Defense Community Cooperation, ALN #12.618 Compliance Requirement: Reporting Questioned Costs: None. Condition and Cause: An additional major program was identified during analytical review of expenditures. The revenue totaling $1,783,748 and accounts receivable of $108,538 was incorrectly recorded as an offset to expenditures or unrecorded. As a result, the grant expenditures were not included on the SEFA or the financial statements. Criteria and Effect: This grant was missed through the District’s existing internal controls, and therefore, resulted in a material misstatement of the District’s SEFA and financial statements. Repeat Finding from Prior Year: No. Recommendation: All grants should be accurately tracked and presented on the SEFA. Response/Corrective Action Plan: Management is in agreement with the finding. See Corrective Action Plan.