Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-002 – Cash Management and Reporting
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports.
Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement.
The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405.
Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement.
Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed.
Identification of Repeat Finding: No
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification.
Those certifications must:
- Be prepared at least semiannually.
- Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee.
Condition: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program.
Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate.
Identification of Repeat Finding: No.
Questioned Costs: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878.
Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel.
Management Response: See Corrective Action Plan on pages 93-95.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
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 of the eligible amounts to claim for reimbursement.
Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures.
Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: No
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan on pages 93-95.