Finding Text
MATERIAL WEAKNESS
2023-004 PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Federal Agency: Department of Education
Federal Program or
Cluster: Education Stabilization Fund
Assistance Listing
Number: 84.425D, 84.425U
Federal Award
Numbers and Years:
Award Period 3/13/20-9/30/22: S425D200013
Award Period 3/13/20-9/30/23: S425D210013
Award Period 6/24/2022-9/30/24: S425U210013
Questioned Costs $0
Condition: The revenue, receivables, and associated expenditures for the Education
Stabilization Fund were originally overstated on the trial balance and the Schedule
of Expenditures of Federal Awards (SEFA) by $2,118,502. The amounts were
corrected on both the trial balance and the SEFA during the audit.
Criteria: According to the CFR Part 200, it is the auditee's responsibility to prepare
appropriate financial statements, including the SEFA. The schedules should be
complete and accurate.
Cause: There was confusion at the School on the proper accounting for grants and awards
given the unique nature of the Education Stabilization Fund.
Effect: The School is not in compliance with the auditee responsibilities in the Uniform
Guidance.
Recommendation: The School should analyze grant documents and recognize revenue in accordance
with Generally Accepted Accounting Principles (GAAP) and the Uniform
Guidance.