Finding 979674 (2023-002)

Statement of Condition - The District failed to open a purchase order for stipends and retreat expenses prior to incurring the expense in prior year. Criteria - The District is required to open a purchase order prior to paying invoices. Effect - The District failed to encumber the stipends and retreat expenses in the prior year. Due to the expenditures not being encumbered in the prior fiscal year, the funds were not reserved for those expenditures and the expenses are not an allowable expense and had to be repaid in the current fiscal year. Recommendation - The District should follow proper fiscal procedure so that allowable expenditures can be reimbursed. District Response - We will follow proper fiscal procedure.