Finding Text
Criteria: As a condition of the receipt of funding the District is required to timely and accurately report their expenditures to the State of Colorado on an annual basis.
Conditions / Context: The District has not implemented a complete system of internal control to prevent or detect financial misstatements and ensure compliance with Federal awards.
Cause: Due to improper coding of capital outlay the District did not properly identify expenditures that should be capitalized and therefore did not accurately report the capital outlay and operating expenditures on the annual report to the State of Colorado.
Effect: As a result of this condition the District was not able to accurately report the expenditure of Federal awards to the awarding agency.
Recommendation: We recommend the District develop a process to ensure that invoices are recorded to an appropriate general ledger account that properly represents the transaction being recorded.
Management’s Response: The district will develop a process to ensure that capital assets are recorded to the appropriate general ledger accounts that properly represents the transaction being recorded.