Finding Text
Federal Program
Education Stabilization Fund - Passed through the Pennsylvania Department of Education
COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22
COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23
COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24
COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24
Criteria
In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source.
Condition
The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants.
Cause
The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants.
Effect
Unallowable costs were charged to the grants.
Questioned Costs
ALN 84.425C; Contract #252-20-0141 - $2,373
ALN 84.425D; Contract #200-21-0141 - $78,902
ALN 84.425U; Contract #223-21-0141 - $44,757
ALN 84.425U; Contract #225-21-0141 - $250
Context
Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants.
Repeat Finding
No.
Recommendation
We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures.
Management Response
See corrective action plan included in this report package.