FAC Explorer

Audit 47082

FY End
2022-06-30
Total Expended
$7.40M
Findings
4
Programs
9
Organization: Lancaster County Career and Technology Center (PA)
Year: 2022 Accepted: 2023-03-27
Auditor: Sager Swisher and Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50531 2022-002 Material Weakness - A
50532 2022-002 Material Weakness - A
626973 2022-002 Material Weakness - A
626974 2022-002 Material Weakness - A

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.04M - 0
84.063 Federal Pell Grant Program $849,816 - 0
84.425 Education Stabilization Fund $620,348 - 0
10.555 National School Lunch Program $523,227 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $223,904 Yes 1
17.259 Wia Youth Activities $53,104 - 0
10.555 Nslp - Value of Usda Donated Commodities $41,035 Yes 0
10.555 Nslp-Snp Emergency Operating Costs $23,082 Yes 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
FGCVJBCHA729 Michael Delpriore Auditee
7174647060 Michael L. Reiner Auditor
No contacts on file

Notes to SEFA

Title: NON-MONETARY ASSISTANCE Accounting Policies: THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IS PREPARED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 U.S. CODE OF FEDERAL REGULATIONS PART 200, UNIFORM ADMINISTRAIVE REQUIREMENTS, COST PRINCIPLES AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE). THEREFORE, SOME AMOUNTS PRESENTED IN THIS SCHEDULE MAY DIFFER FROM AMOUNTS PRESENTED IN, OR USED IN THE PREPARATION OF THE BASIC FINANCIAL STATEMENTS. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. NSLP - VALUE OF USDA DONATED COMMODITIES (CFDA #10.555) - THE CENTER RECEIVED COMMODITIES FROM THE PENNSYLVANIA DEPARTMENT OF AGRICULTURE AT FAIR MARKET VALUE.
Title: ENCUMBRANCES FOR FEDERAL PROGRAMS Accounting Policies: THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IS PREPARED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 U.S. CODE OF FEDERAL REGULATIONS PART 200, UNIFORM ADMINISTRAIVE REQUIREMENTS, COST PRINCIPLES AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE). THEREFORE, SOME AMOUNTS PRESENTED IN THIS SCHEDULE MAY DIFFER FROM AMOUNTS PRESENTED IN, OR USED IN THE PREPARATION OF THE BASIC FINANCIAL STATEMENTS. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. THE EXPENDITURES OF FEDERAL AWARDS DO NOT INCLUDE ENCUMBRANCES FOR FEDERAL PROGRAMS AT YEAR-END. THE FOLLOWING SCHEDULE REFLECTS ENCUMBRANCES FOR FEDERAL PROGRAMS AT JUNE 30, 2022: GRANT #224-21-1161 $65,2766; GRANT #380-22-0056 $92,576; GRANT #381-22-0006 $1,913; GRAND TOTAL $160,255

Finding Details

Finding 2022-002
#2022-002 ? CTE ? Basic Grants to States, CFDA #84.048, Passed through the Pennsylvania Department of Education Criteria: The Center is required to maintain internal controls over compliance to prevent and detect, in a timely manner, unallowable costs under federal programs. Condition: The Center submitted for reimbursement the full retirement cost for benefits, and failed to reduce the claim by the retirement subsidy provided by the Pennsylvania Department of Education. Cause: The Center relied on spreadsheet reconciliations that contained formula errors and overwritten data to calculate allowable costs under the program. The spreadsheet was not properly reviewed to detect the errors. Effect: Costs were charged to the program that were unallowable under the terms of the contract. The Center overstated retirement benefit costs, resulting in questioned costs of $72,846. In addition, the Center also requested excess restricted indirect costs in the amount of $1,073, for a total of $73,919 in questioned costs under the program. Final expenditure reporting for this program was also inaccurate. Recommendation: We recommend that the business office review all grant close out spreadsheets for accuracy and consistency prior to submission. We also recommend the Center contact the Pennsylvania Department of Education to resolve the questioned costs. Views of responsible officials and planned corrective actions: The Center recognizes the oversight and will be in contact with the Department of Education to take necessary steps to remedy the questioned costs. The Center also plans to ensure proper monitoring of spreadsheet reconciliations, and conduct regular review of grant documentation.
Finding 2022-002
#2022-002 ? CTE ? Basic Grants to States, CFDA #84.048, Passed through the Pennsylvania Department of Education Criteria: The Center is required to maintain internal controls over compliance to prevent and detect, in a timely manner, unallowable costs under federal programs. Condition: The Center submitted for reimbursement the full retirement cost for benefits, and failed to reduce the claim by the retirement subsidy provided by the Pennsylvania Department of Education. Cause: The Center relied on spreadsheet reconciliations that contained formula errors and overwritten data to calculate allowable costs under the program. The spreadsheet was not properly reviewed to detect the errors. Effect: Costs were charged to the program that were unallowable under the terms of the contract. The Center overstated retirement benefit costs, resulting in questioned costs of $72,846. In addition, the Center also requested excess restricted indirect costs in the amount of $1,073, for a total of $73,919 in questioned costs under the program. Final expenditure reporting for this program was also inaccurate. Recommendation: We recommend that the business office review all grant close out spreadsheets for accuracy and consistency prior to submission. We also recommend the Center contact the Pennsylvania Department of Education to resolve the questioned costs. Views of responsible officials and planned corrective actions: The Center recognizes the oversight and will be in contact with the Department of Education to take necessary steps to remedy the questioned costs. The Center also plans to ensure proper monitoring of spreadsheet reconciliations, and conduct regular review of grant documentation.
Finding 2022-002
#2022-002 ? CTE ? Basic Grants to States, CFDA #84.048, Passed through the Pennsylvania Department of Education Criteria: The Center is required to maintain internal controls over compliance to prevent and detect, in a timely manner, unallowable costs under federal programs. Condition: The Center submitted for reimbursement the full retirement cost for benefits, and failed to reduce the claim by the retirement subsidy provided by the Pennsylvania Department of Education. Cause: The Center relied on spreadsheet reconciliations that contained formula errors and overwritten data to calculate allowable costs under the program. The spreadsheet was not properly reviewed to detect the errors. Effect: Costs were charged to the program that were unallowable under the terms of the contract. The Center overstated retirement benefit costs, resulting in questioned costs of $72,846. In addition, the Center also requested excess restricted indirect costs in the amount of $1,073, for a total of $73,919 in questioned costs under the program. Final expenditure reporting for this program was also inaccurate. Recommendation: We recommend that the business office review all grant close out spreadsheets for accuracy and consistency prior to submission. We also recommend the Center contact the Pennsylvania Department of Education to resolve the questioned costs. Views of responsible officials and planned corrective actions: The Center recognizes the oversight and will be in contact with the Department of Education to take necessary steps to remedy the questioned costs. The Center also plans to ensure proper monitoring of spreadsheet reconciliations, and conduct regular review of grant documentation.
Finding 2022-002
#2022-002 ? CTE ? Basic Grants to States, CFDA #84.048, Passed through the Pennsylvania Department of Education Criteria: The Center is required to maintain internal controls over compliance to prevent and detect, in a timely manner, unallowable costs under federal programs. Condition: The Center submitted for reimbursement the full retirement cost for benefits, and failed to reduce the claim by the retirement subsidy provided by the Pennsylvania Department of Education. Cause: The Center relied on spreadsheet reconciliations that contained formula errors and overwritten data to calculate allowable costs under the program. The spreadsheet was not properly reviewed to detect the errors. Effect: Costs were charged to the program that were unallowable under the terms of the contract. The Center overstated retirement benefit costs, resulting in questioned costs of $72,846. In addition, the Center also requested excess restricted indirect costs in the amount of $1,073, for a total of $73,919 in questioned costs under the program. Final expenditure reporting for this program was also inaccurate. Recommendation: We recommend that the business office review all grant close out spreadsheets for accuracy and consistency prior to submission. We also recommend the Center contact the Pennsylvania Department of Education to resolve the questioned costs. Views of responsible officials and planned corrective actions: The Center recognizes the oversight and will be in contact with the Department of Education to take necessary steps to remedy the questioned costs. The Center also plans to ensure proper monitoring of spreadsheet reconciliations, and conduct regular review of grant documentation.