FINDING 2023-005
Finding Subject: COVID-19 – Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost
Principles.
Summary of Finding:
An effective internal control system was not in place at the School Corporation to ensure compliance with requirements
related to the gran...
FINDING 2023-005
Finding Subject: COVID-19 – Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost
Principles.
Summary of Finding:
An effective internal control system was not in place at the School Corporation to ensure compliance with requirements
related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance
requirements.
Across-the-board stipends were paid without documentation or justification for additional duties or work performed on
which to base the stipends.
Contact Person Responsible for Corrective Action:
Tracey Haas, Deputy Treasurer
Contact Phone Number and Email Address:
thaas@mcas.k12.in.us (219)873-2000 ext. 8346
Views of Responsible Officials:
We disagree with this finding. We did not offer an across the board stipend with ESSER II. We paid it to
employees who had met certain length of employment requirements and effectiveness requirements. The
IDOE guidance states that staff may be paid extra for added COVID-related work. However, this list is not
exhaustive and we believe there are other reasons that allowed us to proceed.
a. Incentives paid with federal funds must comply with 200.430(f). The federal regulations explicitly state that
the bonus is allowed for efficient performance, which was our criteria.
Explanation and Reasons for Disagreement:
The USDOE gave what we did as a recommended best practice and example for others, of addressing staffing
shortages and offering premium pay. In regards to Cafeteria workers please see this research brief released by
USDOE regarding pandemic funds (ARP but also other federal pandemic funds, which would include ESSER II)
State and Local Practices for Cafeteria and Custodial Staff •
Waco Independent School District in Texas will give custodians and cafeteria workers up to $1,000 in
bonuses, based on years served with the district. Those who have worked for 10 or more years will
receive $1,000, divided in three payments beginning in December 2022. Those who have worked for five
to nine years will get $750, and those with the district fewer than five years will get $500. The district
expects $500 in bonuses to go to custodians and cafeteria workers.
INDIANA STATE BOARD OF ACCOUNTS
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• North Carolina is using ESSER funds to help local school nutrition operations acrossNorthCarolina
recruitandretainneededstaff.
ESSER states, any activity authorized by the ESEA of 1965 (Titles I, II, III, IV IC Migrant, ID Neglected and
Delinquent, 21st Century Community Learning Centers, and Rural and Low-Income Schools Grant) is allowable.
Title II has explicit language about paying teachers and admin (but not cafeteria) more as a recruitment or
retention bonus