Audit 23491

FY End
2022-06-30
Total Expended
$4.33M
Findings
32
Programs
10
Organization: Highlands School District (PA)
Year: 2022 Accepted: 2023-05-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
19851 2022-002 Material Weakness - B
19852 2022-003 Material Weakness - L
19853 2022-002 Material Weakness - B
19854 2022-003 Material Weakness - L
19855 2022-002 Material Weakness - B
19856 2022-003 Material Weakness - L
19857 2022-002 Material Weakness - B
19858 2022-003 Material Weakness - L
19859 2022-002 Material Weakness - B
19860 2022-003 Material Weakness - L
19861 2022-002 Material Weakness - B
19862 2022-003 Material Weakness - L
19863 2022-002 Material Weakness - B
19864 2022-003 Material Weakness - L
19865 2022-002 Material Weakness - B
19866 2022-003 Material Weakness - L
596293 2022-002 Material Weakness - B
596294 2022-003 Material Weakness - L
596295 2022-002 Material Weakness - B
596296 2022-003 Material Weakness - L
596297 2022-002 Material Weakness - B
596298 2022-003 Material Weakness - L
596299 2022-002 Material Weakness - B
596300 2022-003 Material Weakness - L
596301 2022-002 Material Weakness - B
596302 2022-003 Material Weakness - L
596303 2022-002 Material Weakness - B
596304 2022-003 Material Weakness - L
596305 2022-002 Material Weakness - B
596306 2022-003 Material Weakness - L
596307 2022-002 Material Weakness - B
596308 2022-003 Material Weakness - L

Contacts

Name Title Type
PEKDK3GN9C86 David Seropian Auditee
7242262400 Peter J Vancheri Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.
2022-002 Activities Allowed or Unallowed Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Compliance Finding Condition The School District was originally requesting reimbursement for unallowed transportation costs. Criteria Only allowable costs under the program should be reported and claimed as federal expenditures. Cause The School believed any transportation costs incurred were an eligible expense under the guidelines for the Education Stabilization Fund. The School reported, on the quarterly cash on hand reports, costs for transportation that were not eligible. Effect The reporting of the expenditures on the cash on hand quarterly reports that were not eligible resulted in the school district receiving funds in advance of the actual eligible expenditures being incurred and resulting in a significant deferred revenue at year end. Recommendation Management should ensure only eligible expenses are reported as federal expenditures. The business office personnel and the federal program coordinator should ensure the reports being filed are accurate.
2022-003 Funding Source Reports and Expenditure Reporting Education Stabilization Fund 84.425 Covid 19 Passed through the Department of Education Material Weakness in Internal Control Condition The School District was not tracking the federal expenditures within the general ledger system as they were being posted in all cases, entries were being made for some of the expenses to the federal funding source from the accounts originally posted. Criteria Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting and control over federal expenditures. Cause The School was not consistent in determining what expenditures were being used with federal funds and was making entries after the original posting. Effect The reclassification and moving expenditures by journal entry to federal coding allows for the potential for expenditures to be improperly reported. Recommendation Management should ensure only eligible expenses are reported as federal expenditures and ensure they are coded to the correct accounts with the original transactions and not all be journal entries.