Finding Text
2023-003 FINDING: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards. Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER)
Compliance Requirement: Reporting
Questioned Costs: None
Condition and Cause: As in prior years, we were requested to draft the audited financial statements, and related
footnote disclosures and SEFA as part of our regular audit services. Additionally, we were requested to draft the
schedule of expenditures of federal awards. Ultimately, it is management’s responsibility to provide for the preparation
of the District’s statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation
of those statements. From a practical standpoint, we do both for the District at the same time in connection with our
audit. This is not unusual for us to do with organizations of the District’s size.
Criteria and Effect: It is our responsibility to inform the School Board this deficiency could result in a material
misstatement to the financial statements that would have not been prevented or detected by the District’s management.
Repeat Finding from Prior Year: Yes, prior year finding 2022-003.
Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared
financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research
of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in
the District’s financial statements. We are satisfied that the appropriate steps have been taken to provide the District
with the completed financial statements. It is the responsibility of management and the School Board to make the
decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
(SEFA)