BONHAM INDEPENDENT SCHOOL DISTRICT

Criteria: Internal controls over accurate federal draw downs affect the District's ability to draw down funds correctly and timely. Management must establish and maintain effective internal controls to provide reasonable assurance that accurate federal draw downs are submitted timely. Condition: During the course of our audit, we noted federal expenditures spent and not drawn down, resulting in untimely submissions, loss of federal funds at year end, as well as a prior period adjustment. Cause: The District failed to properly maintain the internal federal grant worksheet, and also failed to submit a draw request after preparation. Effect: As a result of this condition, the District lost federal funds due to ineffective internal controls resulting in untimely submissions. Recommendation: We recommend the District implement additional controls and procedures to ensure that federal draw downs are accurate and requested in a timely manner.

Criteria: The District's management should implement internal controls over reconciliations of grant activity to ensure accurate federal draw downs. Condition: During the course of our audit, we noted instances where internal controls were not properly implemented to ensure accurate grant reconciliations. Incorrect amounts were used in the federal grant worksheet. Cause: The District failed to properly reconcile and review the internal federal grant worksheet to ensure accuracy. Effect: As a result of this condition, the internal federal grant worksheet is not accurate. Recommendation: We recommend the District implement additional controls and procedures to ensure that the internal federal grant worksheet is prepared and reviewed accurately.