The Washington State Auditor’s Office issued a finding against the Coupeville School District over an accounting error.
The audit report on financial statements and federal awards covered the period from Sept. 1, 2019 to Aug. 31, 2020. The report was published May 24.
The Auditor’s Office found that the district “did not have adequate internal controls in place to ensure accurate and timely financial reporting.”
Specifically, auditors found that the district didn’t accurately report a federal grant on the Schedule of Expenditures of Federal Awards, or SEFA. In addition, the district did not have a secondary review process to detect and correct errors, auditors found.
As a result, the district did not report all federal grants on the SEFA and the total was understated by $69,000.
That was especially significant because local governments that spend $750,000 or more in federal funds must receive a federal audit. Once the grant was correctly included, the district’s federal expenditures exceeded the threshold and a federal single audit was required.
In its response to the audit finding, the district said it plans to hire a special services director whose duties will include managing state and federal programs. That employee will review the SEFA for accuracy.
Also, the district said it will develop a checklist of procedures for a secondary reviewer to follow.
The Auditor’s Office explained that reliable and timely financial statements are important because the school board, state and federal agencies and the public rely on the information to make decisions.