Finding Text
Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or
Material Weakness Unallowed and Allowable Costs/Cost Principles
Material Noncompliance
Federal Agency: U.S. Department of Education
Federal Program: School Safety National Activities and Native Youth Community Programs
ALN: 84.184 and 84.299
Award Numbers: S184G190154-23 and S299A180025-21
Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184
Type of Finding: Material weakness in internal control over compliance and material noncompliance.
Criteria: Allowable cost principles are defined in 2 CFR 200.400.
Condition and Context: We selected a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 17 of these transactions. We also selected a sample of 11 expenditures transactions for ALN 84.299. The District did not provide supporting documentation for 8 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 2 payroll transactions for ALN 84.184 and 9 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. This is a repeat finding of 2022-008.
Cause: Lack of internal control over transactions charged to the major programs.
Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable.
Questioned Costs: Known questioned costs for ALN 84.184 are $35,226 and known quested costs for ALN 84.299 are $126,821 due to no supporting documentation provided.
Repeat Finding: No. We believe this to be an isolated issue due to employee turnover.
Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained.
Management’s Response: Management agrees with this finding. See Corrective Action Plan.