U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education Pass-Through Iowa Department of Education Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY); Finding: The District overcharged indirect costs to the Education Stabilization Fund program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District did not apply the indirect cost rate to the correct modified total direct cost allocation base. The District applied the indirect cost rate to total expenditures of the ESSER II award of the Education Stabilization Fund without first reducing the allocation base by the total indirect costs already included and by the capital outlay object expenditure amounts. Cause: The District does not prepare a calculation of the modified program direct costs before applying the indirect cost rate. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program $94,605 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to the modified total direct cost allocation base which excluded the indirect cost journal entry posted by the District and capital outlay object expenditure amounts. Context: The overcharge represents approximately 1 percent of the ESSER II award modified total direct cost allocation base and approximately 0.5 percent of the total Education Stabilization Fund program modified total direct cost allocation base. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare an indirect cost worksheet to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates. Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.