Unified School District #333Local Government

Condition: During the review of program expenditures for the Title VIB Targeted Improvement Plan (TIP) grant, we noted that most of the expenditures were recorded with journal entries to the TIP Grant expenditure accounts rather than coding them directly to the program accounts. Criteria: Internal controls should be in place to ensure that costs are correctly charged to the expenditure accounts when incurred and that costs are adequately documented and supported. Cause: The Special Education Coop had high turnover of office staff and procedures where not in place to properly code the expenditures to the TIP grant accounts. Effect: Expenditures were incorrectly posted to the incorrect expenditure accounts and journal entries were made to reclassify. Context: Spreadsheets were provided documenting expenditures that should have been coded to the TIP grant. However, tracing the journal entries to specific expenditures was difficult for some transactions. Questioned costs are less than $25,000. Recommendations: We recommend that the District determine what they are expending the TIP grant for and more accurately code the expenditures to the correct accounts. Views of Responsible Officials and Planned Corrective Actions: The Special Education Coop office staff will establish procedures to more accurately code TIP grant expenditures when they are paid rather than reclassifying them with journal entries at the end of the year.