Finding 2022-004 ? Material Weakness: Cash Management ? Compliance and Control Finding ALN 84.042 ? Student Support Services, 84.044 ? Talent Search and 84.047 ? Upward Bound ? TRIO Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: None ALN 47.076 ? Research and Development Cluster: National Science Foundation ?Missouri Louis Stokes Alliances for Minority Participation, Research Initiation Grant, and Entrepreneurship Federal Agency: National Science Foundation Pass-Through Entity: None ALN 84.425E, 84.425F and 84.425J ? Higher Education Emergency Relief Fund (HEERF) Federal Agency: Department of Education Pass-Through Entity: None ALN 84.031 ? Title III ? Higher Education ? Institutional Aid Federal Agency: U.S. Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: 2 CFR Section 200.305 requires that an entity pay for the costs for which reimbursement is being requested. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs. Condition: Based on the testing completed for allowable activities and costs, appropriate documentation was not retained to provide proof that costs were paid prior to requesting reimbursement. A second review of the cash drawdown to verify that the correct amount of funds are requested did not occur. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: During testing performed for cash management, appropriate documentation was not retained to provide proof that costs were paid prior to reimbursement. For 1 out of 4 cash drawdowns reviewed, the amount of the draw down exceeded the listing of expenditures to date provided. We noted all reimbursement requests are completed and drawn down without a second review. Statistical sampling was not used to test this compliance requirement Identification As A Repeat Finding: 2021-004, 2021-009, 2021-016, 2020-004, 2020-008 2019-005 and 2018-003 Recommendation: Management should retain appropriate documentation to support costs charged to the grant and to support that costs were paid prior to requesting reimbursement. We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer?s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant?s requirements. Views Of Responsible Officials: The University has implemented a process to document all allowable costs prior to funds being draw down that will be prepared by a Senior Accountant, reviewed by the Assistant Comptroller and approved by the Comptroller prior to requesting reimbursement/cash drawdowns from the Federal Government. Moreover, the University is implement a quarterly grant review process with the grant Principal Investigator to review grant expense allocations. G5 drawdowns will take the second Monday of each month.
Finding 2022-004 ? Material Weakness: Cash Management ? Compliance and Control Finding ALN 84.042 ? Student Support Services, 84.044 ? Talent Search and 84.047 ? Upward Bound ? TRIO Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: None ALN 47.076 ? Research and Development Cluster: National Science Foundation ?Missouri Louis Stokes Alliances for Minority Participation, Research Initiation Grant, and Entrepreneurship Federal Agency: National Science Foundation Pass-Through Entity: None ALN 84.425E, 84.425F and 84.425J ? Higher Education Emergency Relief Fund (HEERF) Federal Agency: Department of Education Pass-Through Entity: None ALN 84.031 ? Title III ? Higher Education ? Institutional Aid Federal Agency: U.S. Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: 2 CFR Section 200.305 requires that an entity pay for the costs for which reimbursement is being requested. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs. Condition: Based on the testing completed for allowable activities and costs, appropriate documentation was not retained to provide proof that costs were paid prior to requesting reimbursement. A second review of the cash drawdown to verify that the correct amount of funds are requested did not occur. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: During testing performed for cash management, appropriate documentation was not retained to provide proof that costs were paid prior to reimbursement. For 1 out of 4 cash drawdowns reviewed, the amount of the draw down exceeded the listing of expenditures to date provided. We noted all reimbursement requests are completed and drawn down without a second review. Statistical sampling was not used to test this compliance requirement Identification As A Repeat Finding: 2021-004, 2021-009, 2021-016, 2020-004, 2020-008 2019-005 and 2018-003 Recommendation: Management should retain appropriate documentation to support costs charged to the grant and to support that costs were paid prior to requesting reimbursement. We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer?s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant?s requirements. Views Of Responsible Officials: The University has implemented a process to document all allowable costs prior to funds being draw down that will be prepared by a Senior Accountant, reviewed by the Assistant Comptroller and approved by the Comptroller prior to requesting reimbursement/cash drawdowns from the Federal Government. Moreover, the University is implement a quarterly grant review process with the grant Principal Investigator to review grant expense allocations. G5 drawdowns will take the second Monday of each month.
Finding 2022-004 ? Material Weakness: Cash Management ? Compliance and Control Finding ALN 84.042 ? Student Support Services, 84.044 ? Talent Search and 84.047 ? Upward Bound ? TRIO Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: None ALN 47.076 ? Research and Development Cluster: National Science Foundation ?Missouri Louis Stokes Alliances for Minority Participation, Research Initiation Grant, and Entrepreneurship Federal Agency: National Science Foundation Pass-Through Entity: None ALN 84.425E, 84.425F and 84.425J ? Higher Education Emergency Relief Fund (HEERF) Federal Agency: Department of Education Pass-Through Entity: None ALN 84.031 ? Title III ? Higher Education ? Institutional Aid Federal Agency: U.S. Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: 2 CFR Section 200.305 requires that an entity pay for the costs for which reimbursement is being requested. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs. Condition: Based on the testing completed for allowable activities and costs, appropriate documentation was not retained to provide proof that costs were paid prior to requesting reimbursement. A second review of the cash drawdown to verify that the correct amount of funds are requested did not occur. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: During testing performed for cash management, appropriate documentation was not retained to provide proof that costs were paid prior to reimbursement. For 1 out of 4 cash drawdowns reviewed, the amount of the draw down exceeded the listing of expenditures to date provided. We noted all reimbursement requests are completed and drawn down without a second review. Statistical sampling was not used to test this compliance requirement Identification As A Repeat Finding: 2021-004, 2021-009, 2021-016, 2020-004, 2020-008 2019-005 and 2018-003 Recommendation: Management should retain appropriate documentation to support costs charged to the grant and to support that costs were paid prior to requesting reimbursement. We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer?s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant?s requirements. Views Of Responsible Officials: The University has implemented a process to document all allowable costs prior to funds being draw down that will be prepared by a Senior Accountant, reviewed by the Assistant Comptroller and approved by the Comptroller prior to requesting reimbursement/cash drawdowns from the Federal Government. Moreover, the University is implement a quarterly grant review process with the grant Principal Investigator to review grant expense allocations. G5 drawdowns will take the second Monday of each month.
Finding 2022-004 ? Material Weakness: Cash Management ? Compliance and Control Finding ALN 84.042 ? Student Support Services, 84.044 ? Talent Search and 84.047 ? Upward Bound ? TRIO Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: None ALN 47.076 ? Research and Development Cluster: National Science Foundation ?Missouri Louis Stokes Alliances for Minority Participation, Research Initiation Grant, and Entrepreneurship Federal Agency: National Science Foundation Pass-Through Entity: None ALN 84.425E, 84.425F and 84.425J ? Higher Education Emergency Relief Fund (HEERF) Federal Agency: Department of Education Pass-Through Entity: None ALN 84.031 ? Title III ? Higher Education ? Institutional Aid Federal Agency: U.S. Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: 2 CFR Section 200.305 requires that an entity pay for the costs for which reimbursement is being requested. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs. Condition: Based on the testing completed for allowable activities and costs, appropriate documentation was not retained to provide proof that costs were paid prior to requesting reimbursement. A second review of the cash drawdown to verify that the correct amount of funds are requested did not occur. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: During testing performed for cash management, appropriate documentation was not retained to provide proof that costs were paid prior to reimbursement. For 1 out of 4 cash drawdowns reviewed, the amount of the draw down exceeded the listing of expenditures to date provided. We noted all reimbursement requests are completed and drawn down without a second review. Statistical sampling was not used to test this compliance requirement Identification As A Repeat Finding: 2021-004, 2021-009, 2021-016, 2020-004, 2020-008 2019-005 and 2018-003 Recommendation: Management should retain appropriate documentation to support costs charged to the grant and to support that costs were paid prior to requesting reimbursement. We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer?s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant?s requirements. Views Of Responsible Officials: The University has implemented a process to document all allowable costs prior to funds being draw down that will be prepared by a Senior Accountant, reviewed by the Assistant Comptroller and approved by the Comptroller prior to requesting reimbursement/cash drawdowns from the Federal Government. Moreover, the University is implement a quarterly grant review process with the grant Principal Investigator to review grant expense allocations. G5 drawdowns will take the second Monday of each month.
Finding 2022-004 ? Material Weakness: Cash Management ? Compliance and Control Finding ALN 84.042 ? Student Support Services, 84.044 ? Talent Search and 84.047 ? Upward Bound ? TRIO Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: None ALN 47.076 ? Research and Development Cluster: National Science Foundation ?Missouri Louis Stokes Alliances for Minority Participation, Research Initiation Grant, and Entrepreneurship Federal Agency: National Science Foundation Pass-Through Entity: None ALN 84.425E, 84.425F and 84.425J ? Higher Education Emergency Relief Fund (HEERF) Federal Agency: Department of Education Pass-Through Entity: None ALN 84.031 ? Title III ? Higher Education ? Institutional Aid Federal Agency: U.S. Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: 2 CFR Section 200.305 requires that an entity pay for the costs for which reimbursement is being requested. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs. Condition: Based on the testing completed for allowable activities and costs, appropriate documentation was not retained to provide proof that costs were paid prior to requesting reimbursement. A second review of the cash drawdown to verify that the correct amount of funds are requested did not occur. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: During testing performed for cash management, appropriate documentation was not retained to provide proof that costs were paid prior to reimbursement. For 1 out of 4 cash drawdowns reviewed, the amount of the draw down exceeded the listing of expenditures to date provided. We noted all reimbursement requests are completed and drawn down without a second review. Statistical sampling was not used to test this compliance requirement Identification As A Repeat Finding: 2021-004, 2021-009, 2021-016, 2020-004, 2020-008 2019-005 and 2018-003 Recommendation: Management should retain appropriate documentation to support costs charged to the grant and to support that costs were paid prior to requesting reimbursement. We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer?s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant?s requirements. Views Of Responsible Officials: The University has implemented a process to document all allowable costs prior to funds being draw down that will be prepared by a Senior Accountant, reviewed by the Assistant Comptroller and approved by the Comptroller prior to requesting reimbursement/cash drawdowns from the Federal Government. Moreover, the University is implement a quarterly grant review process with the grant Principal Investigator to review grant expense allocations. G5 drawdowns will take the second Monday of each month.
Finding 2022-004 ? Material Weakness: Cash Management ? Compliance and Control Finding ALN 84.042 ? Student Support Services, 84.044 ? Talent Search and 84.047 ? Upward Bound ? TRIO Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: None ALN 47.076 ? Research and Development Cluster: National Science Foundation ?Missouri Louis Stokes Alliances for Minority Participation, Research Initiation Grant, and Entrepreneurship Federal Agency: National Science Foundation Pass-Through Entity: None ALN 84.425E, 84.425F and 84.425J ? Higher Education Emergency Relief Fund (HEERF) Federal Agency: Department of Education Pass-Through Entity: None ALN 84.031 ? Title III ? Higher Education ? Institutional Aid Federal Agency: U.S. Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: 2 CFR Section 200.305 requires that an entity pay for the costs for which reimbursement is being requested. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs. Condition: Based on the testing completed for allowable activities and costs, appropriate documentation was not retained to provide proof that costs were paid prior to requesting reimbursement. A second review of the cash drawdown to verify that the correct amount of funds are requested did not occur. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: During testing performed for cash management, appropriate documentation was not retained to provide proof that costs were paid prior to reimbursement. For 1 out of 4 cash drawdowns reviewed, the amount of the draw down exceeded the listing of expenditures to date provided. We noted all reimbursement requests are completed and drawn down without a second review. Statistical sampling was not used to test this compliance requirement Identification As A Repeat Finding: 2021-004, 2021-009, 2021-016, 2020-004, 2020-008 2019-005 and 2018-003 Recommendation: Management should retain appropriate documentation to support costs charged to the grant and to support that costs were paid prior to requesting reimbursement. We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer?s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant?s requirements. Views Of Responsible Officials: The University has implemented a process to document all allowable costs prior to funds being draw down that will be prepared by a Senior Accountant, reviewed by the Assistant Comptroller and approved by the Comptroller prior to requesting reimbursement/cash drawdowns from the Federal Government. Moreover, the University is implement a quarterly grant review process with the grant Principal Investigator to review grant expense allocations. G5 drawdowns will take the second Monday of each month.
2022-001 U.S. Department of Agriculture passed through State Department of Education CFDA# 10.553, 10.555, 10.559 Child Nutrition Cluster Cash Management Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.305 indicates that when non-federal entities are funded under the reimbursement method, that the costs for which reimbursement was requested occurred prior to the date of the reimbursement request. Condition: During our testing of compliance there was 2 instances in our sample of cash draws where the supporting documentation did not support the requested reimbursement. Cause: The District?s existing control procedures for reviewing cash draws was not strong enough to identify that incorrect data was submitted for reimbursement. Effect:The District requested reimbursement for the incorrect dollar amount. Questioned Costs: None Reported Context/Sampling: A nonstatistical sample of two months? worth of count sheets of meals served for January 2022 and March 2022, out of 12 months of counts sheets of meals served and requested for reimbursement. Repeat Finding from Prior Year: No Recommendation: The District should review the current control process over the reimbursement requirement to ensure accuracy. Views of Responsible Officials: The District agrees with the finding.
2022-001 U.S. Department of Agriculture passed through State Department of Education CFDA# 10.553, 10.555, 10.559 Child Nutrition Cluster Cash Management Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.305 indicates that when non-federal entities are funded under the reimbursement method, that the costs for which reimbursement was requested occurred prior to the date of the reimbursement request. Condition: During our testing of compliance there was 2 instances in our sample of cash draws where the supporting documentation did not support the requested reimbursement. Cause: The District?s existing control procedures for reviewing cash draws was not strong enough to identify that incorrect data was submitted for reimbursement. Effect:The District requested reimbursement for the incorrect dollar amount. Questioned Costs: None Reported Context/Sampling: A nonstatistical sample of two months? worth of count sheets of meals served for January 2022 and March 2022, out of 12 months of counts sheets of meals served and requested for reimbursement. Repeat Finding from Prior Year: No Recommendation: The District should review the current control process over the reimbursement requirement to ensure accuracy. Views of Responsible Officials: The District agrees with the finding.
Finding 2022-001 ? Cash Management Cluster: Research and Development Cluster Grantors: National Cancer Institute and National Science Foundation Assistance Listing #?s and Titles: 93.397, Cancer Centers Support Grants and 47.049, Mathematical and Physical Sciences Award Names: Case GI SPORE, Case Comprehensive Cancer Support Grant, MRI: Acquisition of an SEM instrumented to conduct inoperando observations of materials performance under external stimuli Award Year and Number: 08/21/21-07/31/22 (CA150964), 04/01/21-03/31/22 (CA043703), 08/01/20-07/31/23 (DMR-2018167) Criteria In accordance with 2 CFR 200.305 (b), for non-Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non- Federal entity requests payment by reimbursement. Per the OMB Compliance Supplement, the non-Federal entity must disburse funds for program purposes before requesting payment from the Federal awarding agency or pass-through entity. Condition In testing compliance with the cash management compliance requirement in accordance with the OMB Compliance Supplement, specifically the reimbursement method, 40 individual expenditures were tested to compare the date Case Western Reserve University (the ?University?) paid the vendor to the date the University requested sponsor reimbursement. We noted 8 instances in which reimbursement was requested from the sponsor before the University paid the vendor, as shown in the chart below. Assistance Listing # Award Number Expenditure Amount Date of Payment to Vendor Date of Reimbursement Request to Sponsor Date of Reimbursement from Sponsor 93.397 CA150964 $356 8/30/2021 8/26/2021 8/26/2021 93.397 CA043703 $269 10/4/2021 9/27/2021 9/27/2021 93.397 CA150964 $245 1/5/2022 9/27/2021 9/27/2021 93.397 CA150964 $300 1/5/2022 10/25/2021 10/25/2021 93.397 CA150964 $364 11/2/2021 10/25/2021 10/25/2021 93.397 CA043703 $895 6/2/2022 5/25/2022 5/25/2022 47.049 DMR-2018167 $2,735 6/27/2022 6/17/2022 6/17/2022 47.049 DMR-2018167 $35,000 6/27/2022 6/17/2022 6/17/2022 Cause Management?s current process when requesting reimbursement to sponsors is to ensure that the expenditures are incurred, however, payment may occur at a later date. Effect The University requested and received Federal reimbursement prior to paying vendors for the selected expenses. This is a repeat finding, in the prior year two exceptions were noted related to this finding. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure requested reimbursements are received in compliance with Federal reimbursement requirements in the Compliance Supplement. Management?s Views and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included at the end of this report after the summary schedule of prior audit findings and status.
Finding 2022-001 ? Cash Management Cluster: Research and Development Cluster Grantors: National Cancer Institute and National Science Foundation Assistance Listing #?s and Titles: 93.397, Cancer Centers Support Grants and 47.049, Mathematical and Physical Sciences Award Names: Case GI SPORE, Case Comprehensive Cancer Support Grant, MRI: Acquisition of an SEM instrumented to conduct inoperando observations of materials performance under external stimuli Award Year and Number: 08/21/21-07/31/22 (CA150964), 04/01/21-03/31/22 (CA043703), 08/01/20-07/31/23 (DMR-2018167) Criteria In accordance with 2 CFR 200.305 (b), for non-Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non- Federal entity requests payment by reimbursement. Per the OMB Compliance Supplement, the non-Federal entity must disburse funds for program purposes before requesting payment from the Federal awarding agency or pass-through entity. Condition In testing compliance with the cash management compliance requirement in accordance with the OMB Compliance Supplement, specifically the reimbursement method, 40 individual expenditures were tested to compare the date Case Western Reserve University (the ?University?) paid the vendor to the date the University requested sponsor reimbursement. We noted 8 instances in which reimbursement was requested from the sponsor before the University paid the vendor, as shown in the chart below. Assistance Listing # Award Number Expenditure Amount Date of Payment to Vendor Date of Reimbursement Request to Sponsor Date of Reimbursement from Sponsor 93.397 CA150964 $356 8/30/2021 8/26/2021 8/26/2021 93.397 CA043703 $269 10/4/2021 9/27/2021 9/27/2021 93.397 CA150964 $245 1/5/2022 9/27/2021 9/27/2021 93.397 CA150964 $300 1/5/2022 10/25/2021 10/25/2021 93.397 CA150964 $364 11/2/2021 10/25/2021 10/25/2021 93.397 CA043703 $895 6/2/2022 5/25/2022 5/25/2022 47.049 DMR-2018167 $2,735 6/27/2022 6/17/2022 6/17/2022 47.049 DMR-2018167 $35,000 6/27/2022 6/17/2022 6/17/2022 Cause Management?s current process when requesting reimbursement to sponsors is to ensure that the expenditures are incurred, however, payment may occur at a later date. Effect The University requested and received Federal reimbursement prior to paying vendors for the selected expenses. This is a repeat finding, in the prior year two exceptions were noted related to this finding. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure requested reimbursements are received in compliance with Federal reimbursement requirements in the Compliance Supplement. Management?s Views and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included at the end of this report after the summary schedule of prior audit findings and status.
Finding No.: 2022-005 Cash Management Federal Agency: Department of Agriculture Assistance Listing No.: 10.557 Requirement: Cash Management Type of Finding: Significant Deficiency Program: Special Supplemental Nutrition Program for Woman, Infants, and Children Federal award no. and year: 7HI700HI7 10/01/2020 ? 09/30/2021 10/01/2021 ? 09/30/2022 7HI700HI1 10/01/2019 ? 09/30/2021 10/01/2020 ? 09/30/2022 Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: ?The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.? The State of Hawaii, Department of Budget and Finance has determined that the ?Administratively feasible time period? was 21 calendar days. Condition: During the testing of the Department?s cash management procedures, it was determined that three out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 22 to 27 days. Context: During the fiscal year ended June 30, 2022, the Department expended $8,398,791 (excluding food expenditures). Cause: The Department draws down federal funds that it estimates will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State?s payment process requires all State departments to process payments through DAGS resulting in processing delays. Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department?s federally funded programs. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-006 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b). Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-005 Cash Management Federal Agency: Department of Agriculture Assistance Listing No.: 10.557 Requirement: Cash Management Type of Finding: Significant Deficiency Program: Special Supplemental Nutrition Program for Woman, Infants, and Children Federal award no. and year: 7HI700HI7 10/01/2020 ? 09/30/2021 10/01/2021 ? 09/30/2022 7HI700HI1 10/01/2019 ? 09/30/2021 10/01/2020 ? 09/30/2022 Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: ?The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.? The State of Hawaii, Department of Budget and Finance has determined that the ?Administratively feasible time period? was 21 calendar days. Condition: During the testing of the Department?s cash management procedures, it was determined that three out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 22 to 27 days. Context: During the fiscal year ended June 30, 2022, the Department expended $8,398,791 (excluding food expenditures). Cause: The Department draws down federal funds that it estimates will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State?s payment process requires all State departments to process payments through DAGS resulting in processing delays. Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department?s federally funded programs. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-006 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b). Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.
Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance of checks, warrants, or payments by other means (2 CFR section 200.305(b)). In addition, to the extent available, the non-federal entity must disburse funds available from program income before requesting additional federal cash draws (2 CFR section 200.305(b)(5)). Condition: As a result of our audit procedures, we noted that the Organization has cash draws in excess of the total program disbursements during the year ended June 30, 2022. In addition, we noted that the Organization requested additional cash draws prior to disbursing available funds for this program. Cause: Policies and procedures were not in place to ensure that the time elapsing between the transfer of federal funds to the Organization and the disbursement of such funds for program purposes was minimized. In addition, policies and procedures were not in place to ensure that additional cash draws were not requested prior to disbursing all available funds for program related purposes. Effect: The Organization could be required to return the excess funds to the grantor along with any associated earned interest, until such time as the money is legitimately needed to pay for grant activities. Recommendation: We recommend that written policies and procedures be established to implement the requirements of 2 CFR section 200.305 to prevent further cash draws from being requested prior to disbursement of all available program funds and to prevent draws in excess of what is needed to meet the immediate needs of the program.
1. FINDING NUMBER: 2022-003 4. THIS FINDING IS: New 2. FINDING TYPE: Internal Control 3. DEFICIENCY TYPE: Significant Deficiency 3. Federal Program Name and Year: COVID-19 - Digital Equity II - D2 4. Project No.: 22-4998-D2 5. AL No.: 84.425D 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 2, part 200.305(b)(3) states that non-federal entities must disburse funds for program purposes before requesting payment from the federal awarding agency or pass-through entity. 9. Condition: The District's expenditure report filed for June 30, 2022 included expenditures paid in July 2022. These amounts were not reported as committed or obligated. 10. Questioned Costs: None. 11. Context: The District received federal reimbursement before expenditures were paid and did not label the expenditures as committed or obligated. 12. Effect: The June 30, 2022 expenditure report was filed overstating cash basis expenditures. The expenditure report did not include the July 2022 paid expenditures as committed or obligated. These expenditures were later liquidated and the final expenditure claim is correct. 13. Cause: Grant expenditures reported on the final June 30, 2022 expenditure report included expenditures that should have been reported as obligated and not included with cash basis expenditures. 14. Recommendation: Grant expenditure reports should be prepared on the cash basis and obligations reported. The liquidation of the obligations should be reported on subsequent liquidation reports. 15. Management's response: There is no disagreement with this finding and management will monitor all future federal reimbursement requests. Committed and obligated expenditures will be reported appropriately, and will be paid within 90 days after project completion.
1. FINDING NUMBER: 2022- 003 4. THIS FINDING IS:New 2. FINDING TYPE: INTERNAL CONTROL 3. DEFICIENCY TYPE: SIGNIFICANT DEFICIENCY COVID-19 - Elementary and Secondary School Emergency Relief - E2 3. Federal Program Name and Year: COVID-19 - ARP Elementary and Secondary School Emergency Relief - E3 4. Project No.: 21-4998-E2 & 22-4998-E3 5. AL No.: 84.425D & 84.425U 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 2, part 200.305(b)(3) states that non-federal entities must disburse funds for program purposes before requesting payment from the federal awarding agency or pass-through entity. 9. Condition The District's expenditure report filed for June 30, 2022 included expenditures paid in July and August 2022. These amounts were not reported as committed or obligated. 10. Questioned Costs None 11. Context The District received federal reimbursement before expenditures were paid and did not label the expenditures as committed or obligated. 12. Effect The June 30, 2022 expenditure report was filed overstating cash basis expenditures. The expenditure report did not include the July and August 2022 paid expenditures as committed or obligated. These expenditures were later liquidated and the final expenditure claim is correct. 13. Cause Grant expenditures reported on the final June 30, 2022 expenditure report included expenditures that should have been reported as obligated and not included with cash basis expenditures. 14. Recommendation Grant expenditure reports should be prepared on the cash basis and obligations reported. The liquidation of the obligations should be reported on subsequent liquidation reports. 15. Management's response There is no disagreement with this finding and management will monitor all future federal reimbursement requests. Committed and obligated expenditures will be reported appropriately, and will be paid within 90 days after project completion.
1. FINDING NUMBER: 2022- 003 4. THIS FINDING IS:New 2. FINDING TYPE: INTERNAL CONTROL 3. DEFICIENCY TYPE: SIGNIFICANT DEFICIENCY COVID-19 - Elementary and Secondary School Emergency Relief - E2 3. Federal Program Name and Year: COVID-19 - ARP Elementary and Secondary School Emergency Relief - E3 4. Project No.: 21-4998-E2 & 22-4998-E3 5. AL No.: 84.425D & 84.425U 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 2, part 200.305(b)(3) states that non-federal entities must disburse funds for program purposes before requesting payment from the federal awarding agency or pass-through entity. 9. Condition The District's expenditure report filed for June 30, 2022 included expenditures paid in July and August 2022. These amounts were not reported as committed or obligated. 10. Questioned Costs None 11. Context The District received federal reimbursement before expenditures were paid and did not label the expenditures as committed or obligated. 12. Effect The June 30, 2022 expenditure report was filed overstating cash basis expenditures. The expenditure report did not include the July and August 2022 paid expenditures as committed or obligated. These expenditures were later liquidated and the final expenditure claim is correct. 13. Cause Grant expenditures reported on the final June 30, 2022 expenditure report included expenditures that should have been reported as obligated and not included with cash basis expenditures. 14. Recommendation Grant expenditure reports should be prepared on the cash basis and obligations reported. The liquidation of the obligations should be reported on subsequent liquidation reports. 15. Management's response There is no disagreement with this finding and management will monitor all future federal reimbursement requests. Committed and obligated expenditures will be reported appropriately, and will be paid within 90 days after project completion.
2022?038 SUBRECIPIENT CASH MANAGEMENT Federal Program Information: Federal Agency and Program Name Assistance Listing # U.S. Department of Health and Human Services Opioid STR-State Targeted Response to the Opioid Crisis Grants 93.788 Grant Award 6H79TI081724 Grant Award 5H79TI083313 Grant Award 1H79TI083313-01 Grant Award 3H79TI081724-01W1 Grant Award 1H79TI081724-01 Grant Award 6H79TI083313Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR 200.305(b)(1) requires that the non-federal entity must ?monitor cash drawdowns by their subrecipients to ensure that the time elapsing between the transfer of federal funds to the subrecipient and their disbursement for program purposes is minimized as required by the applicable cash management requirements in the federal award to the recipient.? Per DHHR policy, the Spending Unit shall limit cash advances to a subrecipient to the minimum amounts needed and be timed in accordance with the actual, immediate cash requirements of the subrecipient for carrying out the purpose of the approved program or project. The timing and amount of cash advances shall be as close as is administratively feasible to the actual disbursements by the subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. Condition: During our testing of the State Targeted Response to the Opioid Crisis Grants, the West Virginia Department of Health and Human Resources (DHHR) was unable to provide adequate documentation supporting why the subrecipient drawdowns were approved for payment for three of the 40 drawdowns selected for testing. The supporting documentation for the draw down showed less expenses than the amount that had been drawn down to date on the grants. The supporting documentation also showed the subrecipients appeared to have adequate cash balances on hand at the time of the request. Questioned Costs: $493,423 Context: The total subrecipient drawdowns selected for testing was $3,521,390. The total amount of subrecipient drawdowns for the Opioid STR program during fiscal year 2022 was $38,332,337. Cause: Documentation to support the amount paid to the subrecipient was not retained by DHHR. In addition, supporting documentation was not retained to demonstrate cash advances to the subrecipient represented the minimum amount needed for actual and immediate cash requirements of the subrecipient for carrying out the purpose of the program. Effect: The cash remitted to the subrecipient may not be accurate and may be in excess of the subrecipients actual and immediate cash requirements for carrying out the purpose of the program. Recommendation: We recommend that DHHR establish policies and procedures requiring documentation from subrecipients substantiating that the amount of a drawdown is appropriate based on the expenditures through the request date so that the reconciliation preformed for the related drawdown is sufficient to determine that the drawdown is appropriate and excess cash is not remitted to the subrecipient. Views of Responsible Officials: Management concurs with the findings and has developed a plan to correct the finding.
SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Material Weakness Finding 2022-001 Eligibility U.S. Department of Health and Human Services HIV CARE Formula Grants CFDA No. 93.917 Condition During the in-take and re-assessment process for the Ryan White HIV/AIDS Part B (RWB) program, case managers are responsible for (1) ensuring that all required forms and documents are received from clients, (2) reviewing those forms and documents for completeness and accuracy to verify that RWB program eligibility requirements are met; and (3) inputting the client?s information into e2 Hawaii, HHHRC?s system to monitor and track all RWB program clients. Effective April 1,2022, HHHRC updated their policies and procedures, requiring a manager or knowledgeable employee other than the case manager to sign off on the certification forms to document their review of eligibility determinations for completeness and accuracy. We selected a sample of 60 clients receiving assistance under the RWB program as part of our eligibility testing. Within the 60 files, we examined 61 annual or semi-annual certification forms dated prior to April 1, 2022, and 32 annual or semi-annual certification forms dated April 1, 2022 or later. Of the 61 certification forms dated prior to April 1, 2022, we noted 59 certification forms did not contain evidence of a review performed by a manager or a knowledgeable employee other than the case manager. Of the 32 certification forms dated April 1, 2022 or later, we noted 6 certification forms were not signed off by a manager or knowledgeable employee other than the case manager. Criteria The Uniform Guidance, as prescribed in 2 CFR section 200.305, requires that non-federal entities receiving federal awards establish and maintain internal control over federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Internal controls over compliance with RWB eligibility requirements should include formal policies and procedures to ensure that data used to determine eligibility are complete and accurate in compliance with RWB program requirements. Eligibility determination procedures should be performed by case managers and reviewed by a manager or knowledgeable employee. Cause HHHRC implemented a formal policy requiring a manager or knowledgeable employee other than the case manager to sign off on the annual and semi-annual certification forms for each client. This formal policy was implemented on April 1, 2022. As such, the certification forms that were prepared prior to this date were not reviewed in accordance with this policy. Effect Without appropriate internal controls, noncompliance with RWB eligibility requirements may occur. Refer to Finding 2022-002 for instances of noncompliance identified in the current year. Identification of a Repeat Finding This finding was reported as a federal award finding in the immediate previous audit as Finding 2021-001. Recommendation We again recommend that HHHRC adhere to established policies and procedures to ensure that eligibility determinations performed by case managers during the in-take and re-assessment process are reviewed by a manager or knowledgeable employee other than the case manager for completeness and accuracy.
SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Material Weakness Finding 2022-001 Eligibility U.S. Department of Health and Human Services HIV CARE Formula Grants CFDA No. 93.917 Condition During the in-take and re-assessment process for the Ryan White HIV/AIDS Part B (RWB) program, case managers are responsible for (1) ensuring that all required forms and documents are received from clients, (2) reviewing those forms and documents for completeness and accuracy to verify that RWB program eligibility requirements are met; and (3) inputting the client?s information into e2 Hawaii, HHHRC?s system to monitor and track all RWB program clients. Effective April 1,2022, HHHRC updated their policies and procedures, requiring a manager or knowledgeable employee other than the case manager to sign off on the certification forms to document their review of eligibility determinations for completeness and accuracy. We selected a sample of 60 clients receiving assistance under the RWB program as part of our eligibility testing. Within the 60 files, we examined 61 annual or semi-annual certification forms dated prior to April 1, 2022, and 32 annual or semi-annual certification forms dated April 1, 2022 or later. Of the 61 certification forms dated prior to April 1, 2022, we noted 59 certification forms did not contain evidence of a review performed by a manager or a knowledgeable employee other than the case manager. Of the 32 certification forms dated April 1, 2022 or later, we noted 6 certification forms were not signed off by a manager or knowledgeable employee other than the case manager. Criteria The Uniform Guidance, as prescribed in 2 CFR section 200.305, requires that non-federal entities receiving federal awards establish and maintain internal control over federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Internal controls over compliance with RWB eligibility requirements should include formal policies and procedures to ensure that data used to determine eligibility are complete and accurate in compliance with RWB program requirements. Eligibility determination procedures should be performed by case managers and reviewed by a manager or knowledgeable employee. Cause HHHRC implemented a formal policy requiring a manager or knowledgeable employee other than the case manager to sign off on the annual and semi-annual certification forms for each client. This formal policy was implemented on April 1, 2022. As such, the certification forms that were prepared prior to this date were not reviewed in accordance with this policy. Effect Without appropriate internal controls, noncompliance with RWB eligibility requirements may occur. Refer to Finding 2022-002 for instances of noncompliance identified in the current year. Identification of a Repeat Finding This finding was reported as a federal award finding in the immediate previous audit as Finding 2021-001. Recommendation We again recommend that HHHRC adhere to established policies and procedures to ensure that eligibility determinations performed by case managers during the in-take and re-assessment process are reviewed by a manager or knowledgeable employee other than the case manager for completeness and accuracy.