CORRECTIVE ACTION PLAN January 6, 2023 The Great Valley School District respectfully submits the following corrective action plan for the fiscal year ended June 30, 2022. Name and address of Independent Public Auditing Firm: Herbein & Company 2763 Century Blvd. Reading, PA 19601-2596 Audit Period: J...
CORRECTIVE ACTION PLAN January 6, 2023 The Great Valley School District respectfully submits the following corrective action plan for the fiscal year ended June 30, 2022. Name and address of Independent Public Auditing Firm: Herbein & Company 2763 Century Blvd. Reading, PA 19601-2596 Audit Period: July 1, 2021 - June 30, 2022 The findings from the June 30, 2022 schedule of findings are discussed below.Section III - Federal Awards Findings and Questioned Costs 2022-002 ALLOWABLE COSTS - SIGNIFICANT DEFICIENCY Federal Program Education Stabilization Fund ALN 84.425D - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER II), contract #200-210168 ALN 84.425U - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER III), contract #223-210168 Criteria In accordance with Uniform Guidance costs principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged 100% of the employer paid retirement cost to the grant, however, the Pennsylvania Department of Education reimburses the District 50% of those costs annually. As a result, the District is only permitted to charge 50% of retirement costs to the grants. Cause The District improperly charged twice the allowable retirement costs to the grant to the general ledger funding source code for the grants. Effect Unallowable costs were charged to the grants. The District subsequently identified allowable costs in this amount to charge to the grants to replace these unallowable costs. Questioned Costs ALN 84.425D, contract #200-210168 - $36,465 ALN 84.425U, contract #200-223168 - $3,736 Context 100% of the retirement costs for the salaries charged to the grants totaled $80,402. 50% of this was reimbursed by the Pennsylvania Department of Education and therefore $40,201 of the costs charged to the grants were unallowable. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream applying subsidy stream payments first. There should also be a procedure in place to have a person independent of report preparation review cost report and underlying expenditures. Action Plan This grant has not been closed and funds are still being expended. Therefore, final reporting to Pennsylvania Department of Education (Department) will not be affected and the District will not have to reimburse the Department for any unallowable costs. All corrections have been processed with allowable costs meeting Uniform Guidance cost principles. The business office staff along with the grant coordinator have also implemented an additional process with the set-up of recurring journal entries for only allowable retirement costs to be charged to the funding stream and monthly review of grant status. Also, an additional role has been included to review monthly grant expenditures compared to budget. Anticipated Completion Date Action plan fully implemented as of report date. If the Department of Education has questions regarding this plan, please contact Charles E. Peterson, Jr. at 610-889-2125, extension 52123 or via email at cpeterson@gvsd.org. Sincerely yours, Charles E. Peterson, Jr. Director of Business Affairs