JONES COUNTY SCHOOL DISTRICT

Section III: Federal Award Findings and Questioned Costs Significant Deficiency Not Considered to be a Material Weakness and noncompliance 2021-002 Finding Accounts payable testing and internal controls. Programs: U.S. Department of Education Passed-through the Mississippi Department of Education Special Education IDEA Part B, CFDA #84.027 Special Education Preschool Grants, CFDA #84.173 Compliance requirement: Allowable Costs and Cost Principles Repeat Finding: 2020-002 Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of 20 invoices, we noted the following items: 1. District could not provide proper documentation showing a signature and/or date of when goods and services were received, or showing approval the invoice was ready to be paid on twenty of the twenty invoices tested. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow all purchasing procedures required specifically to the special education department. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increase risk that the financial statements could be misstated. Context: This finding relates to the documentation provided showing the internal control procedures of the accounts payable transactions. The contract approval is an isolated instance. The district needs to implement the control to show signatures and/or dates on the invoices. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. View of Responsible Officials: Please see Corrective action plan on page 78.

Finding Corrective Action Plan Details 2021-002 District will implement policies and procedures to improve the internal control system that will require signatures and dates when goods and services are received and approval when the invoice is ready to be paid through special education. A. Name of contact person responsible for corrective action: Name: Dr Marla Sumrall Title: Director of Special Education B. Expected date of completion is June 30, 2022

2020-002

Significant Deficiency Not Considered to be a Material Weakness 2020-002 Finding Accounts payable testing and internal controls. Programs: U.S. Department of Education Passed-through the Mississippi Department of Education Special Education IDEA Part B, CFDA #84.027 Special Education Preschool Grants, CFDA #84.173 Compliance requirement: Allowable Costs and Cost Principles Repeat Finding: Not a repeat finding Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of 20 invoices, we noted the following items: 1. District could not provide the board approval for one of the contracts in the sample. 2. District could not provide proper documentation showing a signature and/or date of when goods and services were received, or showing approval the invoice was ready to be paid. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow all purchasing procedures required. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increase risk that the financial statements could be misstated. Context: This finding relates to the documentation provided showing the internal control procedures of the accounts payable transactions. The contract approval is an isolated instance. The district needs to implement the control to show signatures and/or dates on the invoices. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 78.

Finding Corrective Action Plan Details 2020-002 District will implement policies and procedures to improve the internal control system that will require signatures and dates when goods and services are received and approval when the invoice is ready to be paid. A. Name of contact person responsible for corrective action: Name: Sarah Shows Title: Business Manager B. Expected date of completion is June 30, 2021