Audit 291376

FY End
2023-06-30
Total Expended
$1.49M
Findings
20
Programs
11
Organization: Harmony Area School District (PA)
Year: 2023 Accepted: 2024-02-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
369864 2023-006 Material Weakness - F
369865 2023-006 Material Weakness - F
369866 2023-006 Material Weakness - F
369867 2023-006 Material Weakness - F
369868 2023-006 Material Weakness - F
369869 2023-007 Material Weakness - F
369870 2023-007 Material Weakness - F
369871 2023-007 Material Weakness - F
369872 2023-007 Material Weakness - F
369873 2023-007 Material Weakness - F
946306 2023-006 Material Weakness - F
946307 2023-006 Material Weakness - F
946308 2023-006 Material Weakness - F
946309 2023-006 Material Weakness - F
946310 2023-006 Material Weakness - F
946311 2023-007 Material Weakness - F
946312 2023-007 Material Weakness - F
946313 2023-007 Material Weakness - F
946314 2023-007 Material Weakness - F
946315 2023-007 Material Weakness - F

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $60,128 - 0
84.424 Student Support and Academic Enrichment Program $15,148 - 0
84.367 Improving Teacher Quality State Grants $14,435 - 0
84.027 Special Education_grants to States $13,233 - 0
84.010 Title I Grants to Local Educational Agencies $11,046 - 0
21.019 Coronavirus Relief Fund $10,633 - 0
10.555 National School Lunch Program $9,916 - 0
10.582 Fresh Fruit and Vegetable Program $7,210 - 0
84.425 Education Stabilization Fund $3,611 Yes 2
84.358 Rural Education $2,273 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
N42BDRXN7AD6 Bradley Brothers Auditee
8148457918 Brenda A Pawlowski Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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: Harmony Area School District has elected not to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Harmony Area School District under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Harmony Area School District, it is not intended to and does not present the financial position, changes in financial position, or cash flows of Harmony Area School District.
Title: Donated Commodities Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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: Harmony Area School District has elected not to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform Guidance. Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities received and disbursed. At June 30, 2023, the District had food commodities totaling $12,778 in inventory.

Finding Details

CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.
CONDITION: The District’s internal control over compliance failed to prevent non-compliance with the Equipment/Real Property Management requirements applicable to the Education Stabilization Fund (see Compliance Finding #2023-006). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including those for Equipment/Real Property Management, as discussed in Compliance Finding #2023-006. CAUSE: The cause of the internal control deficiency was a lack of management oversight of the District personnel involved with federal programs, as well as the failure to monitor communications from the oversight agency. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Equipment/Real Property Management requirements of the Education Stabilization Fund (specifically obtaining pre-approval for projects). RECOMMENDATION: We recommend that District personnel responsible for grants management educate themselves on the requirements of the Education Stabilization Funds. We further recommend the implementation of a review process by management to ensure the grants are managed correctly and communications from the oversight agency are monitored and addressed timely. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for grant management educate themselves on the requirements of the Education Stabilization Funds. Further, we will resume regular management team meetings to ensure the team is tracking grant progress, as well as monitoring and responding to communications from the Pennsylvania Department of Education.