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.
Criteria 2 CFR 200.305 (b3): Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per ?200.207 Specific conditions, 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, specifically the reimbursement-method, 40 individual expenditures were tested to compare the date the University made payment to a vendor for a selected expense transaction to the date the University requested sponsor reimbursement for the same transaction. Seven instances were noted in which the University paid the vendor after requesting and receiving reimbursement from the government, as shown in the chart below. See Schedule of Findings and Questioned Costs for chart/table This is a repeat of finding 2021-001, 2020-001, 2019-001, 2018-002 and 2017-002 in prior year audit reports. Cause Management?s current process to ensure that the reimbursement of expenditures occurs only after paying the vendor utilizes the assumption that vendors will be paid within 30 days, on average, of incurring the expense. Effect The University received Federal reimbursement prior to paying the vendors for the selected expenses. The reliance of the 30 day average time-frame allowed certain expenditures to be included in requests for reimbursement prior to being liquidated. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with the Federal reimbursement requirements. We also recommend management discuss current cash management requirements with the OMB and the University?s cognizant agency to determine a solution that meets the needs of both parties. Management?s View and Corrective Action Plan Following these findings are management?s view and corrective action plan.
Criteria 2 CFR 200.305 (b3): Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per ?200.207 Specific conditions, 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, specifically the reimbursement-method, 40 individual expenditures were tested to compare the date the University made payment to a vendor for a selected expense transaction to the date the University requested sponsor reimbursement for the same transaction. Seven instances were noted in which the University paid the vendor after requesting and receiving reimbursement from the government, as shown in the chart below. See Schedule of Findings and Questioned Costs for chart/table This is a repeat of finding 2021-001, 2020-001, 2019-001, 2018-002 and 2017-002 in prior year audit reports. Cause Management?s current process to ensure that the reimbursement of expenditures occurs only after paying the vendor utilizes the assumption that vendors will be paid within 30 days, on average, of incurring the expense. Effect The University received Federal reimbursement prior to paying the vendors for the selected expenses. The reliance of the 30 day average time-frame allowed certain expenditures to be included in requests for reimbursement prior to being liquidated. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with the Federal reimbursement requirements. We also recommend management discuss current cash management requirements with the OMB and the University?s cognizant agency to determine a solution that meets the needs of both parties. Management?s View and Corrective Action Plan Following these findings are management?s view and corrective action plan.
Criteria 2 CFR 200.305 (b3): Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per ?200.207 Specific conditions, 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, specifically the reimbursement-method, 40 individual expenditures were tested to compare the date the University made payment to a vendor for a selected expense transaction to the date the University requested sponsor reimbursement for the same transaction. Seven instances were noted in which the University paid the vendor after requesting and receiving reimbursement from the government, as shown in the chart below. See Schedule of Findings and Questioned Costs for chart/table This is a repeat of finding 2021-001, 2020-001, 2019-001, 2018-002 and 2017-002 in prior year audit reports. Cause Management?s current process to ensure that the reimbursement of expenditures occurs only after paying the vendor utilizes the assumption that vendors will be paid within 30 days, on average, of incurring the expense. Effect The University received Federal reimbursement prior to paying the vendors for the selected expenses. The reliance of the 30 day average time-frame allowed certain expenditures to be included in requests for reimbursement prior to being liquidated. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with the Federal reimbursement requirements. We also recommend management discuss current cash management requirements with the OMB and the University?s cognizant agency to determine a solution that meets the needs of both parties. Management?s View and Corrective Action Plan Following these findings are management?s view and corrective action plan.
Criteria 2 CFR 200.305 (b3): Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per ?200.207 Specific conditions, 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, specifically the reimbursement-method, 40 individual expenditures were tested to compare the date the University made payment to a vendor for a selected expense transaction to the date the University requested sponsor reimbursement for the same transaction. Seven instances were noted in which the University paid the vendor after requesting and receiving reimbursement from the government, as shown in the chart below. See Schedule of Findings and Questioned Costs for chart/table This is a repeat of finding 2021-001, 2020-001, 2019-001, 2018-002 and 2017-002 in prior year audit reports. Cause Management?s current process to ensure that the reimbursement of expenditures occurs only after paying the vendor utilizes the assumption that vendors will be paid within 30 days, on average, of incurring the expense. Effect The University received Federal reimbursement prior to paying the vendors for the selected expenses. The reliance of the 30 day average time-frame allowed certain expenditures to be included in requests for reimbursement prior to being liquidated. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with the Federal reimbursement requirements. We also recommend management discuss current cash management requirements with the OMB and the University?s cognizant agency to determine a solution that meets the needs of both parties. Management?s View and Corrective Action Plan Following these findings are management?s view and corrective action plan.
Criteria 2 CFR 200.305 (b3): Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per ?200.207 Specific conditions, 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, specifically the reimbursement-method, 40 individual expenditures were tested to compare the date the University made payment to a vendor for a selected expense transaction to the date the University requested sponsor reimbursement for the same transaction. Seven instances were noted in which the University paid the vendor after requesting and receiving reimbursement from the government, as shown in the chart below. See Schedule of Findings and Questioned Costs for chart/table This is a repeat of finding 2021-001, 2020-001, 2019-001, 2018-002 and 2017-002 in prior year audit reports. Cause Management?s current process to ensure that the reimbursement of expenditures occurs only after paying the vendor utilizes the assumption that vendors will be paid within 30 days, on average, of incurring the expense. Effect The University received Federal reimbursement prior to paying the vendors for the selected expenses. The reliance of the 30 day average time-frame allowed certain expenditures to be included in requests for reimbursement prior to being liquidated. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with the Federal reimbursement requirements. We also recommend management discuss current cash management requirements with the OMB and the University?s cognizant agency to determine a solution that meets the needs of both parties. Management?s View and Corrective Action Plan Following these findings are management?s view and corrective action plan.
Criteria 2 CFR 200.305 (b3): Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per ?200.207 Specific conditions, 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, specifically the reimbursement-method, 40 individual expenditures were tested to compare the date the University made payment to a vendor for a selected expense transaction to the date the University requested sponsor reimbursement for the same transaction. Seven instances were noted in which the University paid the vendor after requesting and receiving reimbursement from the government, as shown in the chart below. See Schedule of Findings and Questioned Costs for chart/table This is a repeat of finding 2021-001, 2020-001, 2019-001, 2018-002 and 2017-002 in prior year audit reports. Cause Management?s current process to ensure that the reimbursement of expenditures occurs only after paying the vendor utilizes the assumption that vendors will be paid within 30 days, on average, of incurring the expense. Effect The University received Federal reimbursement prior to paying the vendors for the selected expenses. The reliance of the 30 day average time-frame allowed certain expenditures to be included in requests for reimbursement prior to being liquidated. Questioned Costs None as reimbursement was requested for allowable costs. Recommendation The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with the Federal reimbursement requirements. We also recommend management discuss current cash management requirements with the OMB and the University?s cognizant agency to determine a solution that meets the needs of both parties. Management?s View and Corrective Action Plan Following these findings are management?s view and corrective action plan.
FINDING 2022-007 Subject: Special Education Cluster (IDEA) - Cash Management Federal Agency: Department of Education Federal Program: Special Education Cluster (IDEA) Assistance Listings Numbers: 84.027, 84.173 Federal Award Numbers and Years (or Other Identifying Numbers): 21611-047-PN01, 21619-047-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Cash Management Audit Findings: Material Weakness, Modified Opinion Condition and Context During fiscal year 2020-2021, the School Corporation was a member as well as the fiscal agent of the Orange-Lawrence-Jackson-Martin-Greene Joint Services Cooperative (Cooperative). The Cooperative operated the special education programs and spent the federal money on behalf of its member schools. During fiscal year 2021-2022, the School Corporation operated their own special education programs. Two reimbursement requests were received from the Indiana Department of Education during the audit period. The School Corporation was unable to provide supporting documentation for the costs included on each of the reimbursement requests. As a result, we were unable to verify the program funds were expended prior to requesting reimbursement. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The 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 or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.334 states in part: "Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass through entity in the case of a subrecipient. . . ." 2 CFR 200.305(b)(3) states in part: "Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met when the Federal awarding agency sets a specific condition per ? 200.207 Specific conditions, or when the non-Federal entity requests payment by reimbursement. . . ." Cause Management had not developed nor implemented a system of internal controls that would have ensured compliance, or that supporting documentation would have been maintained and made available for audit, with the grant agreement and the Cash Management compliance requirement. Effect The failure to establish an effective system of internal controls and retain and provide appropriate supporting documentation prevented the determination of the School Corporation's compliance with the compliance requirement listed above. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a system of internal controls to ensure that documentation will be maintained and made available for audit and comply with the grant agreement and the Cash Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-007 Subject: Special Education Cluster (IDEA) - Cash Management Federal Agency: Department of Education Federal Program: Special Education Cluster (IDEA) Assistance Listings Numbers: 84.027, 84.173 Federal Award Numbers and Years (or Other Identifying Numbers): 21611-047-PN01, 21619-047-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Cash Management Audit Findings: Material Weakness, Modified Opinion Condition and Context During fiscal year 2020-2021, the School Corporation was a member as well as the fiscal agent of the Orange-Lawrence-Jackson-Martin-Greene Joint Services Cooperative (Cooperative). The Cooperative operated the special education programs and spent the federal money on behalf of its member schools. During fiscal year 2021-2022, the School Corporation operated their own special education programs. Two reimbursement requests were received from the Indiana Department of Education during the audit period. The School Corporation was unable to provide supporting documentation for the costs included on each of the reimbursement requests. As a result, we were unable to verify the program funds were expended prior to requesting reimbursement. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The 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 or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.334 states in part: "Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass through entity in the case of a subrecipient. . . ." 2 CFR 200.305(b)(3) states in part: "Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met when the Federal awarding agency sets a specific condition per ? 200.207 Specific conditions, or when the non-Federal entity requests payment by reimbursement. . . ." Cause Management had not developed nor implemented a system of internal controls that would have ensured compliance, or that supporting documentation would have been maintained and made available for audit, with the grant agreement and the Cash Management compliance requirement. Effect The failure to establish an effective system of internal controls and retain and provide appropriate supporting documentation prevented the determination of the School Corporation's compliance with the compliance requirement listed above. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a system of internal controls to ensure that documentation will be maintained and made available for audit and comply with the grant agreement and the Cash Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
2022-002 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: During the year ended June 30, 2022, Eastern Center for Arts and Technology received HEERF grant funds totaling $726,580, of which $720,080 was received in July 2021. However, funds totaling $110,676 remained unexpended as of June 30, 2022. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. 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 (2 CFR section 200.305(b)). Cause: Eastern Center for Arts and Technology did not adequately monitor the amount and the timing of the expenditure of the federal funds received. Effect: Eastern Center for Arts and Technology did not minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement for program costs and, therefore, did not comply with the Cash Management compliance requirement. Context: The financial accounting records reflect that federal funds totaling $726,580 were received during the year ended June 30, 2022 and that $110,676 remained unexpended as of June 30, 2022. Recommendation: Eastern Center for Arts and Technology should more closely monitor the timing of the expenditure of federal funds received. In addition, Eastern Center for Arts and Technology should return unexpended funds once the grant period has ended. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-002 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: During the year ended June 30, 2022, Eastern Center for Arts and Technology received HEERF grant funds totaling $726,580, of which $720,080 was received in July 2021. However, funds totaling $110,676 remained unexpended as of June 30, 2022. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. 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 (2 CFR section 200.305(b)). Cause: Eastern Center for Arts and Technology did not adequately monitor the amount and the timing of the expenditure of the federal funds received. Effect: Eastern Center for Arts and Technology did not minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement for program costs and, therefore, did not comply with the Cash Management compliance requirement. Context: The financial accounting records reflect that federal funds totaling $726,580 were received during the year ended June 30, 2022 and that $110,676 remained unexpended as of June 30, 2022. Recommendation: Eastern Center for Arts and Technology should more closely monitor the timing of the expenditure of federal funds received. In addition, Eastern Center for Arts and Technology should return unexpended funds once the grant period has ended. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-034 Oregon Housing and Community Services Ensure review of subrecipient requests for funds verifies immediate cash needs are supported Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.568 Low-Income Home Energy Assistance Program, 93.568 Low-Income Home Energy Assistance Program (COVID-19) Federal Award Numbers and Years: 2001ORE5C3, 2020 (COVID-19); 2102ORLIEA, 2021; 2102ORE5C6, 2021 (COVID-19); 2202ORLIEA, 2022 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: 2 CFR ? 200.305(b), (b)(1); 2 CFR ? 200.508 Federal regulations require that auditees maintain documentation as needed for the performance of audit procedures related to the Single Audit. Additionally, regulations require payment advances should be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the subrecipient for carrying out the approved program. We reviewed 60 sample cash draws and were unable to obtain adequate supporting documentation for 4 subrecipient requests for reimbursement/advances demonstrating they were appropriate and for immediate cash needs. We also identified an advance payment for which there was not an adequate explanation indicating why an advance was needed. These 5 exceptions totaled $124,304 in expenditures. Department management cited a breakdown in control process and communicated their intention to train relevant staff to ensure adequate support is obtained. Without adequate verification of cash needs, the department could be sending funds to subrecipients that are not for a reimbursement of expenditures or immediate cash needs. We recommend department management strengthen internal controls to ensure support for subrecipient requests for funds adequately documents they are appropriate and for immediate cash needs.
2022-034 Oregon Housing and Community Services Ensure review of subrecipient requests for funds verifies immediate cash needs are supported Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.568 Low-Income Home Energy Assistance Program, 93.568 Low-Income Home Energy Assistance Program (COVID-19) Federal Award Numbers and Years: 2001ORE5C3, 2020 (COVID-19); 2102ORLIEA, 2021; 2102ORE5C6, 2021 (COVID-19); 2202ORLIEA, 2022 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: 2 CFR ? 200.305(b), (b)(1); 2 CFR ? 200.508 Federal regulations require that auditees maintain documentation as needed for the performance of audit procedures related to the Single Audit. Additionally, regulations require payment advances should be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the subrecipient for carrying out the approved program. We reviewed 60 sample cash draws and were unable to obtain adequate supporting documentation for 4 subrecipient requests for reimbursement/advances demonstrating they were appropriate and for immediate cash needs. We also identified an advance payment for which there was not an adequate explanation indicating why an advance was needed. These 5 exceptions totaled $124,304 in expenditures. Department management cited a breakdown in control process and communicated their intention to train relevant staff to ensure adequate support is obtained. Without adequate verification of cash needs, the department could be sending funds to subrecipients that are not for a reimbursement of expenditures or immediate cash needs. We recommend department management strengthen internal controls to ensure support for subrecipient requests for funds adequately documents they are appropriate and for immediate cash needs.
1. FINDING NUMBER: 2022-002 4. THIS FINDING IS: New 2. FINDING TYPE: Compliance 3. DEFICIENCY TYPE: Reporting 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 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 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 $33,819 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.
2022-011 ? Cash Management Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Student Aid Portion and Institutional Portion Federal Assistance Listing Numbers: 84.425E and 84.425F Federal Award Identification Number and Year: P425J200019, P425F203028 and P425E201388 ? all grants were awarded within 2020-2021 and 2021-2022 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Other Matters and Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 2 CFR 200.305(b)(1), the non-Federal entity must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. 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 Code of Federal Regulations, 2 CFR 200.305(b)(9) Interest earned amounts up to $500 per year may be retained by the non-Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the government. Condition: The University did not utilize all funds drawn down therefore, they did not minimize the amount of time between the transfer of funds and disbursement. Additionally, interest was earned on the unspent funds and it was not remitted to the federal government as of year-end. Questioned Costs: N/A. Context: During testing of the cash management requirements, 2 draw downs out of a total of 5 tested were not spent in their entity. $14,719,854 of funds were drawn in January 2022, as of June 30, 2022, $8,423,447 had not been disbursed. Additionally, the University earned interest greater than $500 which was not remitted as of report date. Cause: University does not have a documented procedure or control that minimizes the time elapsing between the transfer of funds and disbursement, or returning earned interest. Effect: Failure to document and adhere to procedures to minimize the time elapsing between transfer and disbursement of funds and the University incurred interest that has not been remitted back to the treasury. Repeat Finding: No Recommendation: We recommend the University formally design and implement controls and monitor advances in federal funds to ensure time elapsing between the transfer of funds and disbursement is minimized and any interest required to be remitted is calculated and returned on a timely basis. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
2022-011 ? Cash Management Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Student Aid Portion and Institutional Portion Federal Assistance Listing Numbers: 84.425E and 84.425F Federal Award Identification Number and Year: P425J200019, P425F203028 and P425E201388 ? all grants were awarded within 2020-2021 and 2021-2022 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Other Matters and Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 2 CFR 200.305(b)(1), the non-Federal entity must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. 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 Code of Federal Regulations, 2 CFR 200.305(b)(9) Interest earned amounts up to $500 per year may be retained by the non-Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the government. Condition: The University did not utilize all funds drawn down therefore, they did not minimize the amount of time between the transfer of funds and disbursement. Additionally, interest was earned on the unspent funds and it was not remitted to the federal government as of year-end. Questioned Costs: N/A. Context: During testing of the cash management requirements, 2 draw downs out of a total of 5 tested were not spent in their entity. $14,719,854 of funds were drawn in January 2022, as of June 30, 2022, $8,423,447 had not been disbursed. Additionally, the University earned interest greater than $500 which was not remitted as of report date. Cause: University does not have a documented procedure or control that minimizes the time elapsing between the transfer of funds and disbursement, or returning earned interest. Effect: Failure to document and adhere to procedures to minimize the time elapsing between transfer and disbursement of funds and the University incurred interest that has not been remitted back to the treasury. Repeat Finding: No Recommendation: We recommend the University formally design and implement controls and monitor advances in federal funds to ensure time elapsing between the transfer of funds and disbursement is minimized and any interest required to be remitted is calculated and returned on a timely basis. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
Assistance Listing Number, Federal Agency, and Program Name - 84.425, U.S. Department of Education, Education Stabilization Fund Federal Award Identification Number and Year - P425E203325, P425F202751 - 2021 Pass-through Entity - N/A Finding Type: Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The College must minimize the time elapsing between the transfer of funds from the United States Treasury to the University and the disbursement of those funds, as outlined in 2 CFR Section 200.305(b). Condition - The College drew down an estimated amount for student and institutional portion prior to the funds being disbursed to students or used for allowable expenditures. Questioned Costs - There were no questioned costs identified. Identification of How Questioned Costs Were Computed - N/A Context - In November 2021, the College drew down $5,882,052 for the Student Aid portion and $5,622,717 for the Institutional Aid portion, but it did not spend the funds within the required time following cash management rules under 2 CFR Section 200.305(b). Cause and Effect - The College was not aware that cash management requirements under Uniform Guidance applied to these programs, which resulted in an excess of funds drawn down. Recommendation - We recommend the College implement a process to ensure that minimizes the time elapsed between the transfer of funds from the United States Treasury to the College and the disbursement of those funds. Views of Responsible Officials and Corrective Action Plan - The College reviewed its cash management policies and corrected accounting procedures are in effect December 22, 2022. Please note that the College was unaware of this requirement; in that regard, it should be recognized that College financial executives consistently and frequently met with their Ohio community college peers, including Ohio Attorney General Office staff, to understand and interpret the evolution of federal rules and guidelines for these federally designated institutional and student awards.