Audit 55017

FY End
2022-06-30
Total Expended
$6.22M
Findings
32
Programs
10
Year: 2022 Accepted: 2023-03-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
59600 2022-003 Material Weakness - F
59601 2022-004 Material Weakness - L
59602 2022-003 Material Weakness - F
59603 2022-004 Material Weakness - L
59604 2022-003 Material Weakness - F
59605 2022-004 Material Weakness - L
59606 2022-003 Material Weakness - F
59607 2022-004 Material Weakness - L
59608 2022-003 Material Weakness - F
59609 2022-004 Material Weakness - L
59610 2022-003 Material Weakness - F
59611 2022-004 Material Weakness - L
59612 2022-003 Material Weakness - F
59613 2022-004 Material Weakness - L
59614 2022-003 Material Weakness - F
59615 2022-004 Material Weakness - L
636042 2022-003 Material Weakness - F
636043 2022-004 Material Weakness - L
636044 2022-003 Material Weakness - F
636045 2022-004 Material Weakness - L
636046 2022-003 Material Weakness - F
636047 2022-004 Material Weakness - L
636048 2022-003 Material Weakness - F
636049 2022-004 Material Weakness - L
636050 2022-003 Material Weakness - F
636051 2022-004 Material Weakness - L
636052 2022-003 Material Weakness - F
636053 2022-004 Material Weakness - L
636054 2022-003 Material Weakness - F
636055 2022-004 Material Weakness - L
636056 2022-003 Material Weakness - F
636057 2022-004 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $535,239 - 0
10.553 School Breakfast Program $168,360 - 0
10.555 National School Lunch Program $94,277 - 0
84.367 Improving Teacher Quality State Grants $76,478 - 0
84.027 Special Education_grants to States $70,466 - 0
84.424 Student Support and Academic Enrichment Program $32,152 - 0
84.425 Education Stabilization Fund $26,704 Yes 2
84.173 Special Education_preschool Grants $3,703 - 0
93.778 Medical Assistance Program $3,601 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
WJ35PKSC6EU9 Renee Jilinski Auditee
5709668200 Kimberly Stank Auditor
No contacts on file

Notes to SEFA

Title: Medical Assistance Accounting Policies: Reporting Entity - Mifflinburg Area School District (the District) is the reporting entity for financial reporting purposes as defined in Note 1B to the Districts basic financial statements. For purposes of preparing the schedules of expenditures of federal awards, the Districts reporting entity is the same that was used for financial reporting. Basis of Accounting - The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the Districts basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Access reimbursement received under ALN #93.778, Revenue Code 8810 are classified as fee-for-service revenues and are not recognized as federal awards for the purpose of the Schedule of Expenditures of Federal Awards.
Title: Risk Based Audit Approach Accounting Policies: Reporting Entity - Mifflinburg Area School District (the District) is the reporting entity for financial reporting purposes as defined in Note 1B to the Districts basic financial statements. For purposes of preparing the schedules of expenditures of federal awards, the Districts reporting entity is the same that was used for financial reporting. Basis of Accounting - The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the Districts basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2022 threshold for determining Type A and Type B programs is $750,000. The School District had two type A programs. The following Type A program was audited as major for coverage: Education Stabilization Fund. The amount expended under the program audited as a major federal program for the year ended June 30, 2022, totaled $4,015,783 or 64.6% of total federal awards expended.

Finding Details

Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).
Finding 2022-003 Equipment and Real Property Management Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 439, capital expenditures for equipment are allowable as direct costs, provided that items with a unit cost of the lessor of $5,000 or the entity?s capitalization threshold have the prior written approval of the Federal awarding agency or pass-through entity. Furthermore, section 313(d)(1) specifies that property records must be maintained that include a description of the property, a serial or identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property. Condition: During testing, it was noted the District purchased two pieces of equipment over the capitalization threshold using ESSER funds without receiving prior approval from the Pennsylvania Department of Education. These assets were also not included in the District?s property records. Cause: Due to staff oversight, the District was not aware that certain costs needed to be pre-approved under the grant. Effect: Internal controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Questioned Costs: None Recommendation: The District should establish procedures to ensure all equipment purchased with grant funding is appropriately approved prior to purchase and property records are maintained in sufficient detail to allow for the adequate tracking of all equipment purchased with grant funds. Management?s Response: The District obtained guidance from PDE resources on the approval process for equipment over the capitalization threshold when utilizing ESSER funds. The District further identified its capitalization threshold of $1,500 is lower than the standard minimum capitalization threshold of $5,000. The capitalization policy will be updated. The value of any single item for inclusion in the fixed assets accounts shall be not less than $5,000 and have an estimated useful life of one (1) year or more.
Finding 2022-004 Reporting Education Stabilization Fund (ESSER) ? ALN# 84.425 Criteria: Pursuant to 2 CFR part 200 section 302(b)(2), a non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program. Condition: During testing, it was noted two of the four PDE-2030 reports did not contain accurate information as the expenditures reported did not agree to the District?s general ledger. Cause: Due to oversight, the District was not reporting expenditures on a cumulative basis. Effect: Internal controls are not functioning as designed and the District is not in compliance with reporting requirements of the program. Questioned Costs: None Recommendation: The District should develop procedures to ensure accurate information is reported to allow for adequate tracking of the financial results of each Federal award. In addition, reports should be reviewed by an appropriate individual prior to submission to ensure the data entered into the reports is consistent with the District?s records. Management?s Response: The District developed procedures for assigning expenditures for State and Federal awards and created reporting specific to funding sources to identify all awards. Prior to submissions to reporting agencies, quarterly and annual reports will be reviewed by the Business Administrator to ensure accuracy for the reporting period(s).