Aspen School District

Criteria or specific requirement: Per the 2021 OMB Compliance Supplement for Assistance Listing No. 21.019, allowable costs must meet general criteria for allowability, including being necessary and reasonable for the performance of the Federal award, allocable thereto and adequately documented. Condition: From a sample of sixty general disbursements, with a tested population total of $132,082.24 out of a total population for the program of $193,739.38, one expenditure did not have supporting documentation within the District's records, making it unable to determine if the cost is allowable. Questioned costs: $2,453.45 Known. Context: One of the sixty samples did not have a supporting invoice for the expenditure, which is an error rate of 1.86%. A non-statistical sampling method was used to select the sample. Cause: The invoice and payment support for the disbursement were not kept on file in the District's systems and unable to locate. Effect: Missing support for disbursements relating to CRF funds as the potential effect of using federal funds for unallowable costs. Repeat finding: No. Recommendation: We recommend that the District review its record keeping policies and procedures to ensure all expenditures have support in the District's system. Views of Responsible Officials: Agreed with CLA's recommendation.

Department of Treasury ? Coronavirus Relief Fund 21.019 Recommendation: We recommend that the District request support for all disbursements and file supporting documents once they are received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Requests will be made from vendors for supporting documents, and documents will be filed when received. Name(s) of the contact person(s) responsible for corrective action: Linda Warhoe, Chief Financial Officer Planned completion date for corrective action plan: June 30, 2023

Criteria or specific requirement: Per the 2021 OMB Compliance Supplement for Assistance Listing No. 21.019, allowable costs must meet general criteria for allowability, including being necessary and reasonable for the performance of the Federal award, allocable thereto and adequately documented. Condition: From a sample of eight payroll disbursements, with a testing population of $44,529.85 out of an overall population of $170,727.01, two selections did not have a contract on file to support the rate the individual was paid. The other six selection had unsigned contracts on file. Questioned costs: $26,997.82 Known. Context: Two of the eight sampled did not have a contract to support the rate paid, which is an error rate of 36.24%. A non-statistical sampling method was used to select the sample. The two selections that did not have a contract were for the same employee just different pay dates. There were three payments made to this employee totaling $26,997.82 of federal expenditures. The remaining employees charged to the program had unsigned contracts. Cause: One employee was missing a contract and the remaining had unsigned contracts. Effect: Salaries paid with federal funding have the potential effect to be paid out at rates that have not been approved when there is no signed contract used as support for pay rates. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District requires employees to sign an official contract and maintain adequate record keeping for storing support for federal expenditures incurred by the District. Views of Responsible Officials: Agreed with CLA's recommendation.

Department of Treasury ? Coronavirus Relief Fund 21.019 Recommendation We recommend that the District requires employees to sign an official contract and maintain adequate record keeping for storing support for expenditures incurred by the District. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HR plans to implement a procedure that requires employees to agree and sign new PAFs beginning with the 2022-2023 school year. All HR staff have now been trained on preparing contracts with Ivisions. Name(s) of the contact person(s) responsible for corrective action: Linda Warhoe, Chief Financial Officer Planned completion date for corrective action plan: July 1, 2022

Criteria or specific requirement: The schedule of federal awards must be included as part of the Annual Comprehensive Financial Report to report Federal expenditures. Condition: The District did not accurately report the schedule of federal awards for all federal expenditures of the District through June 30, 2021. Amounts of federal expenditures, assistance listing numbers and programs presented had to be revised to accurately report federal expenditures and assistance listing numbers on the schedule of federal awards. Questioned Costs: None. Context: The errors were caught during testing over federal grants and reconciling activity for each program. Multiple programs has incorrect assistance listing numbers and federal expenditure amounts reported before revision was made. Cause: Numerous errors to federal expenditures and assistance listing numbers on the schedule of federal awards. Effect: The District may incorrectly report federal expenditures if spending is not tracked/reporting during the fiscal year. Repeat finding: This is not a repeat finding. Recommendation: We recommend the District review year end controls around reporting of federal funds expended on the schedule of federal awards. View of Responsible Officials: Agreed with CLA's recommendation.

Department of Treasury ? Coronavirus Relief Fund 21.019 Recommendation: We recommend the District review yearend controls around reporting of federal funds expended on the schedule of federal awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The district has developed a reporting mechanism for all federal awards. Name(s) of the contact person(s) responsible for corrective action: Linda Warhoe, Chief Financial Officer Planned completion date for corrective action plan: May 12, 2022