Ashland School District #32JLocal Government

Criteria: The Office of Management and Budget, Code of Federal Regulations Section 200.400 (CFR 200.400) specifies that grant recipients are to be ?responsible for the efficient and effective administration of the Federal award through the application of sound management practices.? Federal Identification CFDA Number: 84.010 and 84.367 Program Title: Title I Grants to Local Education Agencies and Supporting Effective Instruction State Grants Name of Federal Agency: U. S. Department of Education Pass-Through Entity: Montana Office of Public Instruction Condition: The School District made three grant draw-down requests on the Office of Public Instruction E-Grant system that were not supported by associated allowable expenditures in the School District?s accounting records or reported in the School District?s TFS. Effect: Draw request are not supported by documentation to support purpose of draw. Context: Three Title I (CFDA 84.010) and Title II (CFDA 84.367) draw-down requests had been processed on the E-Grant system but were not supported by the School District?s accounting system or TFS. We could not confirm that the School District incurred allowable expenditures to support these draw-down requests. The draw-down requests amounted to $52,036 (Title II $11,275 and Title I $40,761). Cause: This was caused by inadequate tracking and matching of allowable expenditures of Miscellaneous fund grants against grant revenue invoiced. This was also caused by the School District not using its accounting system effectively. Recommendation: We recommend that the School District match Miscellaneous fund allowable expenditures and invoiced revenue to ensure invoiced grant revenues are tied to allowable expenditures. We further recommend the School District use the OPI ?Grant/Project Recap Worksheet?.

Criteria: GAAP, under the accrual and modified accrual basis of accounting, requires that expenses be reported during the period in which they are incurred. If the transfer of cash has not occurred as of the period-end, an accrued liability would be recorded and reported. Federal Identification CFDA Number: 84.010 and 84.041 Program Title: Title I Grants to Local Education Agencies and Impact Aid Name of Federal Agency: U.S. Department of Education Pass-Through Entity: Montana Office of Public Instruction Condition: Grant program expenditures were not recorded and reported in the School District?s TFS as of June 30, 2019. Effect: The School District?s June 30, 2019 TFS was not in compliance with GAAP. Context: Title I program expenses incurred during June 2019 were not recorded prior to the fiscal year-end which caused June 30, 2019 balances for accounts payable and expenditures to be understated by $17,493. The same occurred for Impact Aid in the amount of $7,161. The School District recorded an adjustment for their audited financial statements. Cause: Invoices were received after the fiscal year 2019 accounts were closed. Recommendation: We recommend that the School District review claims paid in July and August to identify goods and services that had been received during the previous fiscal year.