Finding 961767 (2023-001)

Finding 2023-001 – Inaccurate reporting of expenditures Criteria: The District receives assistance from the Department of Health and Human Services. The District requests draw down of grant monies based upon actual expenditures incurred. The District is required to maintain adequate internal controls over financial reporting in order to ensure expenditures are properly supported and reported within the correct grant period. Condition: During audit procedures we noted total reimbursements received exceeded expenditures. We consider this to be a significant deficiency. Questioned Costs: $6,239 Cause: Adjustments to various accounts were not timely recorded in the accounting software, therefore, the reports used in supporting the draw down of funds were inaccurately stated. Effect: Inaccurate financial reporting of expenditures resulted in the District’s reimbursement requests exceeding total program expenditures. Recommendations: We recommend that all adjustments are accounted for in the accounting software prior to submitting draw down requests. A reconciliation should be prepared on a regular basis. All unexpended funds should be returned to remain in compliance. View of Responsible Officials: The District’s fiscal manager terminated her position July of 2022 leaving the agency struggling with turnovers and not knowing what entries were allocated correctly. Payables were entered in the accounting software from purchase orders which caused the reports to be inaccurately stated in the amount of $6,239. The unexpended funds will be returned to the Department of Health and Human Services to remain in compliance.