INDEPENDENT SCHOOL DISTRICT NO. 712Local Government

Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Allowable Activities/Allowable Costs Criteria: The District?s purchasing policy requires an approved purchase order for all purchases except reoccurring purchases. The District also has signed contacts that show the salary amount for all employee?s who sign a contract. Condition: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Questioned Costs: None. Context: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Cause: Management Oversight. Effect: The District could make a purchase, or pay wages, with federal dollars that is not an allowable expense. Repeat Finding: No. Recommendation: The district should follow their purchasing policy to ensure all non-occurring transactions have an approved purchase order before the transaction is purchased. The district should also implement procedures that ensure that all employee contracts have the correct wage amount listed on the contract. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Special Tests and Provisions ? Wage Rate Criteria: Uniform Guidance states ?Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contract or subcontractor comply with those requirements and DOL regulations.? Condition: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Questioned Costs: None. Context: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Cause: Management Oversight. Effect: The District entered into a construction contract that did not comply with the rules set by Uniform Guidance. Repeat Finding: No. Recommendation: The District should follow their ?Provisions included in All Contracts Charged to Federal Awards (2 CFR part 200 Appendix II)? section of their purchasing policy. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Federal Program: Child Nutrition Cluster (AL 10.555 & 10.559): Cash Management; Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily counts sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to state for reimbursement. Our population included the daily records for the meals served, and our population included 204 days and we tested 21 days. Six of the 21 days did not agree with meal counts reported in the monthly summary. The sample total was $44,506 and the net difference in meals reported was $205. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.