Finding Text
Criteria: For internal controls, expenditures should be adequately authorized by the Superintendent or other appropriate individual independent of the check preparation process, and this authorization should be documented. Condition: The District did not have adequate documentation of approval for all expenditures. We tested 40 disbursements made from the Education Stabilization Fund grant program and found 12 disbursements missing the necessary documentation. Questioned Costs: None. Context: Total expenditures of the program were $2,737,716 for the year ended June 30, 2023. The 12 disbursements without documentation of an approval totaled $408,652. 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 40 expenditures and 12 did not have supervisory approval. Cause: The District was not aware that the approval by an authorized individual, such as the Superintendent, needed to be documented on the invoices before payment was made. Recommendation: We recommend the District provide proper documentation of approval by the Superintendent or other appropriate individual independent of the check preparation process, for payment of invoices. Management's Response: The Superintendent will begin initialing each invoice to document his approval going forward.