Questioned Costs $-
Finding No. 2023‐002: Reporting (Material Weakness)
Federal Agency: U.S. Department of the Interior
Assistance Listing Number and Title: 15.875 – Economic, Social, and Political Development of the Territories
Condition
During our audit, for 2 out of 6 financial and narrative of project status reports selected for testing, we noted no available evidence to verify the reports were prepared.
We were also informed by program personnel that 4 semi‐annual financial reports and 4 narrative of project status reports which were not selected for testing, were also not prepared.
Criteria
The Office of Insular Affairs (“OIA”) requires financial reports and a narrative of project status to be submitted within 30 days after the end of the reporting period.
Cause
Due to turnover in critical positions, the lack of report preparation may be attributed to general oversight by the program personnel.
Effect
The failure to file required reports reduces transparency on the use of program funds and hinders monitoring by the awarding agency.
Context
A sample of 6 reports were selected for audit from a population of 14 reports. Our test found two instances in which reports were not submitted. We were also informed by management that the 8 reports which were not selected for testing were also not submitted. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the program personnel responsible for preparing and reviewing reports have adequate knowledge of reporting requirements.
Cause and View of Responsible Officials
The program personnel were unaware of the reporting requirements as defined in the OIA Cooperative Agreement. The Office of Monitoring and Compliance Branch will ensure program personnel are informed through written procedures and training.
Questioned Costs $-
Finding No. 2023‐003: Cash Management (Control Deficiency) Period of Performance (Control Deficiency)
Federal Agency: U.S. National Endowment for the Humanities
Assistance Listing Number and Title: 45.310 – Grants to State
Condition
During our audit, we noted the following instances of noncompliance:
Cash Management
We selected 8 federal cash receipts and identified 9 instances totaling approximately $1,594,000 in which the time elapsing between the receipt of federal funds and the disbursement of amounts within the aggregate cash receipt to an individual vendor was greater than 30 days.
Period of Performance
We selected 40 disbursements for testing and identified 2 instances totaling approximately $40,000 in which expenditures were made outside of the award period.
Criteria
Cash Management
U.S. Department of the Treasury Regulations 31 Code of Federal Regulations (“CFR”) Section 205.33 requires the Department to minimize the time between the receipt of federal funds from the federal government and the Department’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the Department’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs.
Period of Performance
Title 2 Section 200.344 of the CFR requires final accounting and settlement within 90 days after the end of the federal fiscal year, or upon termination or closeout of an award, whichever is earlier.
Cause
We were informed by program personnel that due to supply chain issues, invoices were not received in a timely manner which led to the untimely disbursement and expenditure of federal funds.
Effect
Cash Management
The delay in disbursing advances of federal funds prevents the use of those funds for more urgent purposes by the federal government and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Period of Performance
The delay in expenditures prevents the granting agency from timely assessing the status and activities of the program and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
Cash Management
A sample of 8 federal cash receipts totaling approximately $2,410,000 were selected for audit from a population of 20 federal cash receipts totaling approximately $3,647,000. Our test found 9 instances in which the Department’s disbursement of the funds within the aggregate cash receipt to an individual vendor was not completed in a timely manner. Our sample was a statistically valid sample.
Period of Performance
A sample of 40 disbursements totaling approximately $3,547,000 were selected for audit from a population of approximately $3,664,000. Our test found two instances in which expenditures were made outside of the award period. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the Department perform the following to ensure compliance:
Cash Management
Upon receipt of federal funds, ensure that the subsequent disbursement of such funds occurs in a timely manner.
Period of Performance
Ensure expenditures of federal funds are made within the grant award period.
Cause and View of Responsible Officials
During fiscal year 2023, multiple vendors experienced supply chain issues that resulted in untimely deliverables. As a result of these delays, the Department could not disburse funds in a timely manner.
Questioned Costs $-
Finding No. 2023‐003: Cash Management (Control Deficiency) Period of Performance (Control Deficiency)
Federal Agency: U.S. National Endowment for the Humanities
Assistance Listing Number and Title: 45.310 – Grants to State
Condition
During our audit, we noted the following instances of noncompliance:
Cash Management
We selected 8 federal cash receipts and identified 9 instances totaling approximately $1,594,000 in which the time elapsing between the receipt of federal funds and the disbursement of amounts within the aggregate cash receipt to an individual vendor was greater than 30 days.
Period of Performance
We selected 40 disbursements for testing and identified 2 instances totaling approximately $40,000 in which expenditures were made outside of the award period.
Criteria
Cash Management
U.S. Department of the Treasury Regulations 31 Code of Federal Regulations (“CFR”) Section 205.33 requires the Department to minimize the time between the receipt of federal funds from the federal government and the Department’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the Department’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs.
Period of Performance
Title 2 Section 200.344 of the CFR requires final accounting and settlement within 90 days after the end of the federal fiscal year, or upon termination or closeout of an award, whichever is earlier.
Cause
We were informed by program personnel that due to supply chain issues, invoices were not received in a timely manner which led to the untimely disbursement and expenditure of federal funds.
Effect
Cash Management
The delay in disbursing advances of federal funds prevents the use of those funds for more urgent purposes by the federal government and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Period of Performance
The delay in expenditures prevents the granting agency from timely assessing the status and activities of the program and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
Cash Management
A sample of 8 federal cash receipts totaling approximately $2,410,000 were selected for audit from a population of 20 federal cash receipts totaling approximately $3,647,000. Our test found 9 instances in which the Department’s disbursement of the funds within the aggregate cash receipt to an individual vendor was not completed in a timely manner. Our sample was a statistically valid sample.
Period of Performance
A sample of 40 disbursements totaling approximately $3,547,000 were selected for audit from a population of approximately $3,664,000. Our test found two instances in which expenditures were made outside of the award period. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the Department perform the following to ensure compliance:
Cash Management
Upon receipt of federal funds, ensure that the subsequent disbursement of such funds occurs in a timely manner.
Period of Performance
Ensure expenditures of federal funds are made within the grant award period.
Cause and View of Responsible Officials
During fiscal year 2023, multiple vendors experienced supply chain issues that resulted in untimely deliverables. As a result of these delays, the Department could not disburse funds in a timely manner.
Questioned Costs $-
Finding No. 2023‐004: Student Eligibility (Control Deficiency)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 84.002A – Adult Education – Basic Grants to States
Condition
During our audit, we noted one instance in which a student was permitted to enroll in Workplace Literacy and Adult Basic Education programs without meeting the eligibility criteria for those programs.
Criteria
Section 200.403 – Factors affecting allowability of costs of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, states “(c) – in order for costs to be allowable under Federal awards it must be consistent with policies and procedures that apply uniformly to both federally‐financed and other activities of non‐Federal entity.”
Cause
The inaccurate eligibility determinations may be attributed to general oversight by the program personnel.
Effect
Failure to adhere to the program’s eligibility requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
A sample of 25 individuals were selected for audit from a population of 3,627 individuals eligible to participate in Workplace Literacy and Adult Basic Education programs. Our test found that one individual was improperly deemed as being eligible to participate in Workplace Literacy and Adult Basic Education programs. Our sample was a statistically valid sample.
Repeat Finding
This is a repeat of prior audit Finding No. 2022‐03.
Recommendation
We recommend that program personnel ensure that the appropriate eligibility criteria are followed when determining an individual’s ability to enroll in Workplace Literacy and Adult Basic Education programs.
Cause and View of Responsible Officials
The local service provider was unaware of the eligibility requirements for basic skills deficient individuals and did not thoroughly understand workplace adult education and literacy activities as defined in United States Code, Title 29, Chapter 32 Workforce Innovation and Opportunity Act §3272. The Office of Curriculum and Instructional Design Community Education Specialist will ensure the local service provider is informed through written eligibility procedures and training
Questioned Costs $-
Finding No. 2023‐005: Special Tests and Provisions (Control Deficiency)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 84.0011A – Migrant Education State Grant Program
Condition
During our audit, 17 out of 40 students selected for testing, we noted no available evidence to verify the services provided to Priority of Services (“PFS”) students.
Criteria
Pursuant to Title 1, Part C, Section 1304 of the Every Student Succeeds Act (“ESSA”), the Department is required to give priority services to eligible migrant students.
Cause
Due to vacancies in critical positions, certain schools were unable to provide services to PFS students.
Effect
Failure to adhere to the program’s requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
A sample of 40 students were selected for audit from a population of 615 students. Our test found 17 instances in which services were not rendered. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that program management ensure that personnel are familiar with all grant requirements and retain necessary documentation to comply with federal program requirements.
Cause and View of Responsible Officials
The Department is currently in the process of hiring personnel to assist with providing services.
Questioned Costs $-
Finding No. 2023‐006: Matching, Level of Effort and Earmarking (Control Deficiency)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 84.365A – English Language Acquisition State Grants
Condition
During our audit, we noted the following instances of noncompliance:
-The program expended greater than 5% of federal funds awarded for state level activities.
-The program expended the greater of 2.5% or $175,000 in federal funds awarded on administration costs.
Criteria
Pursuant to Title 3, Part A, of the ESSA, the Department can reserve up to 5% of their awarded federal program funds to carry out state activities. The Department can also reserve the greater of 2.5% of their awarded federal program funds or $175,000 for administration costs.
Cause
Due to turnover in critical positions, the lack of adequate financial reporting to calculate and track compliance with the required earmarking requirements may be attributed to general oversight by the program personnel.
Effect
Failure to adhere to the program’s requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
A sample of 2 awards were selected for audit from a population of 2 awards which terminated during fiscal 2023. Our test found two instances in which state activities and administration costs were greater than earmarking requirements. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the program personnel follow the policies and procedures established to comply with earmarking requirements.
Cause and View of Responsible Officials
We were informed that program personnel were aware of the noncompliance. However, due to turnover in critical positions, they were unable to correct the noncompliance by June 30, 2023.
Questioned Costs $-
Finding No. 2023‐007: Special Tests and Provisions (Material Weakness)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: COVID‐19 84.425U – Education Stabilization Fund
Condition
During our audit, we noted program personnel were unable to provide a complete and accurate listing of all expenditures incurred in association with construction projects funded with program monies during fiscal year 2023.
Criteria
Pursuant to Title 2, Section 200, Appendix II, of the CFR, for all construction contracts in excess of $2,000 financed by federal funds, the Department is required to pay wages not less than those established for the locality of the project by the U.S. Department of Labor.
Cause
Personnel responsible for the tracking of construction projects funded with program monies during the period from July 2022 through April 2023 are no longer with the Department. Current program personnel began the oversight and tracking of such activities in May 2023, however they were unable to locate any records associated with the tracking of expenditures associated with construction projects funded with program monies that may have been maintained by the previous program personnel during the period from July 2022 through April 2023.
Effect
Failure to adhere to the program’s requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
The Department was unable to provide a complete and accurate listing of all expenditures incurred in association with construction projects funded with program monies during fiscal year 2023.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the program personnel maintain a complete and accurate listing of all expenditures incurred in association with construction projects funded with program monies. We also recommend that the contractual terms of any construction contracts in excess of $2,000 financed with program monies include the appropriate provisions to comply with award requirements.
Cause and View of Responsible Officials
Due to turnover in critical positions, the program personnel were unable to furnish a complete and accurate listing of all executed construction contracts in excess of $2,000 and expenditures for each contract during fiscal year 2023. The program personnel will ensure retention of necessary documentation to comply with federal program requirements.
Questioned Costs $-
Finding No. 2023‐002: Reporting (Material Weakness)
Federal Agency: U.S. Department of the Interior
Assistance Listing Number and Title: 15.875 – Economic, Social, and Political Development of the Territories
Condition
During our audit, for 2 out of 6 financial and narrative of project status reports selected for testing, we noted no available evidence to verify the reports were prepared.
We were also informed by program personnel that 4 semi‐annual financial reports and 4 narrative of project status reports which were not selected for testing, were also not prepared.
Criteria
The Office of Insular Affairs (“OIA”) requires financial reports and a narrative of project status to be submitted within 30 days after the end of the reporting period.
Cause
Due to turnover in critical positions, the lack of report preparation may be attributed to general oversight by the program personnel.
Effect
The failure to file required reports reduces transparency on the use of program funds and hinders monitoring by the awarding agency.
Context
A sample of 6 reports were selected for audit from a population of 14 reports. Our test found two instances in which reports were not submitted. We were also informed by management that the 8 reports which were not selected for testing were also not submitted. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the program personnel responsible for preparing and reviewing reports have adequate knowledge of reporting requirements.
Cause and View of Responsible Officials
The program personnel were unaware of the reporting requirements as defined in the OIA Cooperative Agreement. The Office of Monitoring and Compliance Branch will ensure program personnel are informed through written procedures and training.
Questioned Costs $-
Finding No. 2023‐003: Cash Management (Control Deficiency) Period of Performance (Control Deficiency)
Federal Agency: U.S. National Endowment for the Humanities
Assistance Listing Number and Title: 45.310 – Grants to State
Condition
During our audit, we noted the following instances of noncompliance:
Cash Management
We selected 8 federal cash receipts and identified 9 instances totaling approximately $1,594,000 in which the time elapsing between the receipt of federal funds and the disbursement of amounts within the aggregate cash receipt to an individual vendor was greater than 30 days.
Period of Performance
We selected 40 disbursements for testing and identified 2 instances totaling approximately $40,000 in which expenditures were made outside of the award period.
Criteria
Cash Management
U.S. Department of the Treasury Regulations 31 Code of Federal Regulations (“CFR”) Section 205.33 requires the Department to minimize the time between the receipt of federal funds from the federal government and the Department’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the Department’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs.
Period of Performance
Title 2 Section 200.344 of the CFR requires final accounting and settlement within 90 days after the end of the federal fiscal year, or upon termination or closeout of an award, whichever is earlier.
Cause
We were informed by program personnel that due to supply chain issues, invoices were not received in a timely manner which led to the untimely disbursement and expenditure of federal funds.
Effect
Cash Management
The delay in disbursing advances of federal funds prevents the use of those funds for more urgent purposes by the federal government and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Period of Performance
The delay in expenditures prevents the granting agency from timely assessing the status and activities of the program and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
Cash Management
A sample of 8 federal cash receipts totaling approximately $2,410,000 were selected for audit from a population of 20 federal cash receipts totaling approximately $3,647,000. Our test found 9 instances in which the Department’s disbursement of the funds within the aggregate cash receipt to an individual vendor was not completed in a timely manner. Our sample was a statistically valid sample.
Period of Performance
A sample of 40 disbursements totaling approximately $3,547,000 were selected for audit from a population of approximately $3,664,000. Our test found two instances in which expenditures were made outside of the award period. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the Department perform the following to ensure compliance:
Cash Management
Upon receipt of federal funds, ensure that the subsequent disbursement of such funds occurs in a timely manner.
Period of Performance
Ensure expenditures of federal funds are made within the grant award period.
Cause and View of Responsible Officials
During fiscal year 2023, multiple vendors experienced supply chain issues that resulted in untimely deliverables. As a result of these delays, the Department could not disburse funds in a timely manner.
Questioned Costs $-
Finding No. 2023‐003: Cash Management (Control Deficiency) Period of Performance (Control Deficiency)
Federal Agency: U.S. National Endowment for the Humanities
Assistance Listing Number and Title: 45.310 – Grants to State
Condition
During our audit, we noted the following instances of noncompliance:
Cash Management
We selected 8 federal cash receipts and identified 9 instances totaling approximately $1,594,000 in which the time elapsing between the receipt of federal funds and the disbursement of amounts within the aggregate cash receipt to an individual vendor was greater than 30 days.
Period of Performance
We selected 40 disbursements for testing and identified 2 instances totaling approximately $40,000 in which expenditures were made outside of the award period.
Criteria
Cash Management
U.S. Department of the Treasury Regulations 31 Code of Federal Regulations (“CFR”) Section 205.33 requires the Department to minimize the time between the receipt of federal funds from the federal government and the Department’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the Department’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs.
Period of Performance
Title 2 Section 200.344 of the CFR requires final accounting and settlement within 90 days after the end of the federal fiscal year, or upon termination or closeout of an award, whichever is earlier.
Cause
We were informed by program personnel that due to supply chain issues, invoices were not received in a timely manner which led to the untimely disbursement and expenditure of federal funds.
Effect
Cash Management
The delay in disbursing advances of federal funds prevents the use of those funds for more urgent purposes by the federal government and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Period of Performance
The delay in expenditures prevents the granting agency from timely assessing the status and activities of the program and represents an instance of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
Cash Management
A sample of 8 federal cash receipts totaling approximately $2,410,000 were selected for audit from a population of 20 federal cash receipts totaling approximately $3,647,000. Our test found 9 instances in which the Department’s disbursement of the funds within the aggregate cash receipt to an individual vendor was not completed in a timely manner. Our sample was a statistically valid sample.
Period of Performance
A sample of 40 disbursements totaling approximately $3,547,000 were selected for audit from a population of approximately $3,664,000. Our test found two instances in which expenditures were made outside of the award period. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the Department perform the following to ensure compliance:
Cash Management
Upon receipt of federal funds, ensure that the subsequent disbursement of such funds occurs in a timely manner.
Period of Performance
Ensure expenditures of federal funds are made within the grant award period.
Cause and View of Responsible Officials
During fiscal year 2023, multiple vendors experienced supply chain issues that resulted in untimely deliverables. As a result of these delays, the Department could not disburse funds in a timely manner.
Questioned Costs $-
Finding No. 2023‐004: Student Eligibility (Control Deficiency)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 84.002A – Adult Education – Basic Grants to States
Condition
During our audit, we noted one instance in which a student was permitted to enroll in Workplace Literacy and Adult Basic Education programs without meeting the eligibility criteria for those programs.
Criteria
Section 200.403 – Factors affecting allowability of costs of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, states “(c) – in order for costs to be allowable under Federal awards it must be consistent with policies and procedures that apply uniformly to both federally‐financed and other activities of non‐Federal entity.”
Cause
The inaccurate eligibility determinations may be attributed to general oversight by the program personnel.
Effect
Failure to adhere to the program’s eligibility requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
A sample of 25 individuals were selected for audit from a population of 3,627 individuals eligible to participate in Workplace Literacy and Adult Basic Education programs. Our test found that one individual was improperly deemed as being eligible to participate in Workplace Literacy and Adult Basic Education programs. Our sample was a statistically valid sample.
Repeat Finding
This is a repeat of prior audit Finding No. 2022‐03.
Recommendation
We recommend that program personnel ensure that the appropriate eligibility criteria are followed when determining an individual’s ability to enroll in Workplace Literacy and Adult Basic Education programs.
Cause and View of Responsible Officials
The local service provider was unaware of the eligibility requirements for basic skills deficient individuals and did not thoroughly understand workplace adult education and literacy activities as defined in United States Code, Title 29, Chapter 32 Workforce Innovation and Opportunity Act §3272. The Office of Curriculum and Instructional Design Community Education Specialist will ensure the local service provider is informed through written eligibility procedures and training
Questioned Costs $-
Finding No. 2023‐005: Special Tests and Provisions (Control Deficiency)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 84.0011A – Migrant Education State Grant Program
Condition
During our audit, 17 out of 40 students selected for testing, we noted no available evidence to verify the services provided to Priority of Services (“PFS”) students.
Criteria
Pursuant to Title 1, Part C, Section 1304 of the Every Student Succeeds Act (“ESSA”), the Department is required to give priority services to eligible migrant students.
Cause
Due to vacancies in critical positions, certain schools were unable to provide services to PFS students.
Effect
Failure to adhere to the program’s requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
A sample of 40 students were selected for audit from a population of 615 students. Our test found 17 instances in which services were not rendered. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that program management ensure that personnel are familiar with all grant requirements and retain necessary documentation to comply with federal program requirements.
Cause and View of Responsible Officials
The Department is currently in the process of hiring personnel to assist with providing services.
Questioned Costs $-
Finding No. 2023‐006: Matching, Level of Effort and Earmarking (Control Deficiency)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: 84.365A – English Language Acquisition State Grants
Condition
During our audit, we noted the following instances of noncompliance:
-The program expended greater than 5% of federal funds awarded for state level activities.
-The program expended the greater of 2.5% or $175,000 in federal funds awarded on administration costs.
Criteria
Pursuant to Title 3, Part A, of the ESSA, the Department can reserve up to 5% of their awarded federal program funds to carry out state activities. The Department can also reserve the greater of 2.5% of their awarded federal program funds or $175,000 for administration costs.
Cause
Due to turnover in critical positions, the lack of adequate financial reporting to calculate and track compliance with the required earmarking requirements may be attributed to general oversight by the program personnel.
Effect
Failure to adhere to the program’s requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
A sample of 2 awards were selected for audit from a population of 2 awards which terminated during fiscal 2023. Our test found two instances in which state activities and administration costs were greater than earmarking requirements. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the program personnel follow the policies and procedures established to comply with earmarking requirements.
Cause and View of Responsible Officials
We were informed that program personnel were aware of the noncompliance. However, due to turnover in critical positions, they were unable to correct the noncompliance by June 30, 2023.
Questioned Costs $-
Finding No. 2023‐007: Special Tests and Provisions (Material Weakness)
Federal Agency: U.S. Department of Education
Assistance Listing Number and Title: COVID‐19 84.425U – Education Stabilization Fund
Condition
During our audit, we noted program personnel were unable to provide a complete and accurate listing of all expenditures incurred in association with construction projects funded with program monies during fiscal year 2023.
Criteria
Pursuant to Title 2, Section 200, Appendix II, of the CFR, for all construction contracts in excess of $2,000 financed by federal funds, the Department is required to pay wages not less than those established for the locality of the project by the U.S. Department of Labor.
Cause
Personnel responsible for the tracking of construction projects funded with program monies during the period from July 2022 through April 2023 are no longer with the Department. Current program personnel began the oversight and tracking of such activities in May 2023, however they were unable to locate any records associated with the tracking of expenditures associated with construction projects funded with program monies that may have been maintained by the previous program personnel during the period from July 2022 through April 2023.
Effect
Failure to adhere to the program’s requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200.
Context
The Department was unable to provide a complete and accurate listing of all expenditures incurred in association with construction projects funded with program monies during fiscal year 2023.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the program personnel maintain a complete and accurate listing of all expenditures incurred in association with construction projects funded with program monies. We also recommend that the contractual terms of any construction contracts in excess of $2,000 financed with program monies include the appropriate provisions to comply with award requirements.
Cause and View of Responsible Officials
Due to turnover in critical positions, the program personnel were unable to furnish a complete and accurate listing of all executed construction contracts in excess of $2,000 and expenditures for each contract during fiscal year 2023. The program personnel will ensure retention of necessary documentation to comply with federal program requirements.