Audit 52970

FY End
2022-06-30
Total Expended
$1.09B
Findings
2
Programs
48
Organization: School District of Philadelphia (PA)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
47967 2022-002 Significant Deficiency - L
624409 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Crrsa Esser II $433.56M Yes 0
84.425 Arpa Esser III $228.88M Yes 0
84.010 Title I Grants to Local Educational Agencies $189.64M - 0
93.600 Head Start $47.25M Yes 1
10.555 National School Lunch Program $46.69M - 0
84.027 Special Education_grants to States $35.25M Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $21.99M Yes 0
10.553 School Breakfast Program $17.17M - 0
84.367 Supporting Effective Instruction State Grants $12.53M Yes 0
84.424 Student Support and Academic Enrichment Program $11.43M - 0
84.048 Career and Technical Education -- Basic Grants to States $5.81M - 0
84.425 Geer II Iu26 $4.37M Yes 0
84.425 Education Stabilization Fund $4.09M Yes 0
93.558 Temporary Assistance for Needy Families $3.68M Yes 0
10.558 Child and Adult Care Food Program $3.31M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.67M Yes 0
84.365 English Language Acquisition State Grants $2.27M - 0
84.425 Geer Special Ed Covid 19 $1.66M Yes 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1.31M - 0
84.425 Geer Atsi Sd $1.25M Yes 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1.05M - 0
12.002 Procurement Technical Assistance for Business Firms $1.02M - 0
84.215 Innovative Approaches to Literacy $985,398 - 0
84.196 Education for Homeless Children and Youth $836,465 - 0
84.425 Cares Pccd Health Safety $770,429 Yes 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $635,858 - 0
84.425 Geer Continuity of Education and Equity Grant $586,966 Yes 0
84.184 School Safety National Activities $361,045 - 0
84.377 School Improvement Grants $357,900 - 0
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $309,853 - 0
66.039 National Clean Diesel Emissions Reduction Program $290,000 - 0
93.795 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $246,223 - 0
84.425 Continuity of Education and Equity Grant $235,913 Yes 0
84.173 Special Education_preschool Grants $175,068 Yes 0
16.710 Public Safety Partnership and Community Policing Grants $61,584 - 0
93.079 Pash Cares $48,919 - 0
84.041 Impact Aid $12,962 - 0
93.778 Medical Assistance Program $12,412 - 0
84.425 Arp Homeless Children Youth II $1,278 Yes 0
10.582 Fresh Fruit and Vegetable Program $0 - 0
84.425 Geer II Cte $0 Yes 0
84.425 Arpa Esser 7% $0 Yes 0
84.425 Arp Homeless Children Youth I $0 Yes 0
21.019 Coronavirus Relief Fund $0 - 0
93.137 Community Programs to Improve Minority Health Grant Program $0 - 0
84.425 Arpa Esser Set Aside Iu 025 $0 Yes 0
84.366 Mathematics and Science Partnerships $0 - 0
84.425 Statewide System of Support Iu26 $0 Yes 0

Contacts

Name Title Type
DJ5CZ47C7RB9 Marcy Blender Auditee
2154005435 Charles Edacheril Auditor
No contacts on file

Notes to SEFA

Title: AL #10.555 National School Lunch Program Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School Districts accounting systems. For reporting purposes, the School District adheres to the significant accounting policies which are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting. The accompanying SEFA includes the federal grant activity of the School District under federal financial assistance programs for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of operations of the School District, it is not intended to present the financial position or changes in net position. Federal programs considered active during the year ended June 30, 2022, are reflected in the SEFA. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year.Accrued and Unearned Grant Revenue various worksheet schedules are used for the federal awards received by the School District. Consequently, timing differences between the recognition of revenues and related cash receipts can exist at the beginning and end of the fiscal year. Accrued grant revenue balances represent the excess of revenue recognized over cash received to date. Unearned grant revenue balances represent the excess of cash received over revenue recognized to date. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Information contained in the Schedule of Expenditures of Federal Awards (SEFA) for AL #10.555 National School Lunch Program includes Non-Cash Assistance pertaining to food commodities distributed by the United States Department of Agriculture (USDA). Commodities are identified with the programs under which USDA donated the commodities.
Title: Government of the School District Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School Districts accounting systems. For reporting purposes, the School District adheres to the significant accounting policies which are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting. The accompanying SEFA includes the federal grant activity of the School District under federal financial assistance programs for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of operations of the School District, it is not intended to present the financial position or changes in net position. Federal programs considered active during the year ended June 30, 2022, are reflected in the SEFA. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year.Accrued and Unearned Grant Revenue various worksheet schedules are used for the federal awards received by the School District. Consequently, timing differences between the recognition of revenues and related cash receipts can exist at the beginning and end of the fiscal year. Accrued grant revenue balances represent the excess of revenue recognized over cash received to date. Unearned grant revenue balances represent the excess of cash received over revenue recognized to date. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School District of Philadelphia (the School District) is a separate and independent home rule school district of the first class established by the Education Supplement to the Philadelphia Home Rule Charter (the Charter) in December 1965. It is the largest school district in the Commonwealth of Pennsylvania (the Commonwealth), serving over 197,500 students, including Charter Schools. The School District is the tenth largest in the United States in enrollment and employs more than 20,400 full-time professional and non-professional persons. The boundaries of the School District are coterminous with the boundaries of the City of Philadelphia (the City).The School District is a political subdivision of the Commonwealth created to assist in the administration of the General Assemblys duties under the Constitution of the Commonwealth to provide for the maintenance and support of a thorough and efficient system of public education to serve the needs of the Commonwealth. Although the School District is an independent legal entity, it is considered to be a component unit of the City of Philadelphia for reporting purposes and is included in the Citys Annual Comprehensive Financial Report.Local governance by a Board of Education (Board) consisting of nine members appointed by the Mayor of the City of Philadelphia began on July 1, 2018 to coincide with the dissolution of the School Reform Commission at the end of the reporting period of Fiscal Year 2018. As prescribed, the Board is responsible for the School District's overall operation, management, and educational programs, including all budgetary and financial matters presented herein. The duties of the Board generally include, but are not limited to, the formulation of educational policy, the adoption of an annual budget, the development of a comprehensive capital improvement budget and program, and the incurrence of indebtedness. The Superintendent of Schools beginning on July 1, 2018 reports to the local Board. During the Fiscal Year 2022 reporting period, the Superintendent was Dr. William R. Hite, Jr. and the Chief Financial Officer was Uri Z. Monson. The Superintendent retired after a decade-long tenure at the end of the 2021-2022 School Year and a new Superintendent, Dr. Tony B. Watlington, Sr. assumed leadership of the District for the Fiscal Year 2023 reporting period.The School District also serves as the agent for the Intermediate Unit No. 26, an entity established by the Commonwealth to provide special education, special education transportation, and related management services.
Title: Organization and Scope Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School Districts accounting systems. For reporting purposes, the School District adheres to the significant accounting policies which are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting. The accompanying SEFA includes the federal grant activity of the School District under federal financial assistance programs for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of operations of the School District, it is not intended to present the financial position or changes in net position. Federal programs considered active during the year ended June 30, 2022, are reflected in the SEFA. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year.Accrued and Unearned Grant Revenue various worksheet schedules are used for the federal awards received by the School District. Consequently, timing differences between the recognition of revenues and related cash receipts can exist at the beginning and end of the fiscal year. Accrued grant revenue balances represent the excess of revenue recognized over cash received to date. Unearned grant revenue balances represent the excess of cash received over revenue recognized to date. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the fiscal year ended June 30, 2022, the School District of Philadelphia is presenting a Single Audit Report on expenditures of federal awards. This report is issued in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The U.S. Department of Health and Human Services, National External Audit Review Center has been designated the organization-wide cognizant agency for the School District of Philadelphias single audit.
Title: Major Programs Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School Districts accounting systems. For reporting purposes, the School District adheres to the significant accounting policies which are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting. The accompanying SEFA includes the federal grant activity of the School District under federal financial assistance programs for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of operations of the School District, it is not intended to present the financial position or changes in net position. Federal programs considered active during the year ended June 30, 2022, are reflected in the SEFA. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year.Accrued and Unearned Grant Revenue various worksheet schedules are used for the federal awards received by the School District. Consequently, timing differences between the recognition of revenues and related cash receipts can exist at the beginning and end of the fiscal year. Accrued grant revenue balances represent the excess of revenue recognized over cash received to date. Unearned grant revenue balances represent the excess of cash received over revenue recognized to date. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Major federal programs are identified in the Summary of Auditors Results section of the Schedule of Findings and Questioned Costs.
Title: COVID 19 FEMA Grant AL #93.323 Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School Districts accounting systems. For reporting purposes, the School District adheres to the significant accounting policies which are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting. The accompanying SEFA includes the federal grant activity of the School District under federal financial assistance programs for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of operations of the School District, it is not intended to present the financial position or changes in net position. Federal programs considered active during the year ended June 30, 2022, are reflected in the SEFA. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year.Accrued and Unearned Grant Revenue various worksheet schedules are used for the federal awards received by the School District. Consequently, timing differences between the recognition of revenues and related cash receipts can exist at the beginning and end of the fiscal year. Accrued grant revenue balances represent the excess of revenue recognized over cash received to date. Unearned grant revenue balances represent the excess of cash received over revenue recognized to date. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures related to the COVID 19 FEMA Grant (CFDA 93.323) that occurred in Fiscal Year 2021 are being reported in the current years SEFA because the grant was not approved until Fiscal Year 2022. In accordance with the uniform guidance, the grant expenditures were not reported in the Fiscal Year 2021 SEFA. The grant amount approved in Fiscal Year 2022 was $2,670,334.08. The prior year expenditures of $2,670,334.08, are included in this SEFA.

Finding Details

Condition: During our test for compliance with the Federal Funding Accountability and Transparency Act (FFATA), we noted that the School District of Philadelphia (School District) did not have a process in place to report subawards made under the federal Head Start program in accordance with the FFATA and award agreement. Consequently, auditors could not test for FFATA reporting compliance for this grant program. Funding for this program is from the Department of Health and Human Services. Criteria: Per the OMB?s Uniform Guidance 2 CFR Part 170, the prime recipient of a federal award must report information regarding first-tier subawards of $30,000 or more utilizing the FFATA Subaward Reporting System (FSRS), and states that the subaward reporting requirement applies to all types of first-tier subawards. The reporting is required by the end of the month following the month in which the award is made. Effect: Federal grantors may not have complete and accurate information to make fiscal decisions on federal awards. Additionally, there could be a lack of transparency and accountability to the public on how federal dollars are spent. Cause: School District management was not aware of the FFATA reporting requirement. Therefore, School District management did not have a systematic process in place to report subawards made under the federal Head Start program in accordance with FFATA. Recommendation: School District?s management should develop written policies and procedures which ensure that it complies with the FFATA requirement to file first-tier subaward reports.
Condition: During our test for compliance with the Federal Funding Accountability and Transparency Act (FFATA), we noted that the School District of Philadelphia (School District) did not have a process in place to report subawards made under the federal Head Start program in accordance with the FFATA and award agreement. Consequently, auditors could not test for FFATA reporting compliance for this grant program. Funding for this program is from the Department of Health and Human Services. Criteria: Per the OMB?s Uniform Guidance 2 CFR Part 170, the prime recipient of a federal award must report information regarding first-tier subawards of $30,000 or more utilizing the FFATA Subaward Reporting System (FSRS), and states that the subaward reporting requirement applies to all types of first-tier subawards. The reporting is required by the end of the month following the month in which the award is made. Effect: Federal grantors may not have complete and accurate information to make fiscal decisions on federal awards. Additionally, there could be a lack of transparency and accountability to the public on how federal dollars are spent. Cause: School District management was not aware of the FFATA reporting requirement. Therefore, School District management did not have a systematic process in place to report subawards made under the federal Head Start program in accordance with FFATA. Recommendation: School District?s management should develop written policies and procedures which ensure that it complies with the FFATA requirement to file first-tier subaward reports.