Finding Number 2023-005 — Significant Deficiency in Internal Control/Non-Compliance —
Appropriate Expense Period of Covid 19-ESSER II 23b — Credit Recovery
Condition: During expense testing of ESSER funds, a journal entry that reclassed the cost of
Edmentum, program licenses for Plato courses, had e...
Finding Number 2023-005 — Significant Deficiency in Internal Control/Non-Compliance —
Appropriate Expense Period of Covid 19-ESSER II 23b — Credit Recovery
Condition: During expense testing of ESSER funds, a journal entry that reclassed the cost of
Edmentum, program licenses for Plato courses, had expensed the entire annual license fee. The
period for eligible expenditures did not begin until October 1, 2022. This journal entry expensed
the full cost of the invoice, $11,914.50, and the district did not prorate the costs to include only
those expenses from October 1, 2022 through June 30, 2023. The District did not adhere to the
proper period for expenditures.
Responsible Person: Carl Seiter, Director of Business Services
Implementation Date: December 31, 2023
Corrective Action: Develop a summary of all federal grants. This summary will detail the fiscal
year it is associated with but more importantly, it will provide the proper period of eligible
expenditures for each federal funding source. This summary may be used and readily available
at the time approvals are granted for expenditures. If an expense does not fall within the eligible
time period, the expense can be rejected by the approver.
This summary will be shared with all administrators and staff.
In addition, the process for reclass journal entries will also include a pause to check that each
invoice associated with a federal grant, is falling within the proper period of expenditures.
Sincerely,
Carl Seiter
Director of Business Services
Shepherd Public Schools