Finding Text
Finding 2024-003
Identification of the Federal Program
U.S. Department of Education:
AL 84.425D ESSER II – Elementary and Secondary School Emergency Relief Fund
AL 84.425U ARP ESSER – American Rescue Plan - Elementary and Secondary School Emergency Relief
Fund
AL 84.425W ARP ESSER - American Rescue Plan - Elementary and Secondary School Emergency Relief
Fund Homeless Children and Youth
Passed through New York State Education Department – applicable to all above grant funds passed through
as shown on the Schedule of Federal Expenditures
Compliance Requirement: Reporting
Criteria
The Charter School is required to submit an annual report to New York State Education Department - the Education
Stabilization Fund Annual Reporting - to provide required information which is then utilized by NYSED to
complete the U.S. Department of Education ESF – ESSER Recipient Data Collection Form. A critical component
of this report is the accurate reporting of the Charter School’s number of positions supported with ESSER funds
and expenditures by ESSER subgrant and accounting object for the period from July 1, 2022, to June 30, 2023, and
was required to be filed by February 15, 2024. In accordance with the instructions for completing the form,
expenditures are defined as the reimbursement payments received by the Charter School during the reporting
period.
Statement of condition and cause
During our audit, we noted the Charter School inaccurately reported expenditures and number of positions
supported on the Education Stabilization Fund Annual Reporting for period from July 1, 2022 to June 30, 2023 as a
result of utilizing the accrual basis of accounting to determine expenditures, rather than the amount of
reimbursement payments received. Management’s internal controls over compliance with respect to this report did
not allow management to detect and correct the error on a timely basis.
Effect
As a result of utilizing the incorrect reporting basis, the information reported to the pass-through entity (NYSED)
on the Education Stabilization Fund Annual Reporting was incorrect. This could lead to errors in the amounts
ultimately reported to the U.S. Department of Education by NYSED.
Questioned Costs
N/A
Repeat Finding
No
Recommendation
We recommend the Charter School review the NYSED Grants Finance reports via the NYSED website to
determine the reimbursement payments received during the applicable reporting period and agree the amounts per
the website to the total amounts shown in the Education Stabilization Fund Annual Reporting. This will ensure that
the information is shown in accordance with the instructions for the NYSED report and the related U.S. Department
of Education requirements.
Management response
Management acknowledges that the reporting method utilized for the Annual Education Stabilization ESSER Fund
report should have been completed on a cash basis which is based on reimbursement of expenses received during
the fiscal year. Classical Charter Schools will take the necessary steps to comply with the cash basis reporting
method on all future Annual Education Stabilization ESSER Funds reports.