Finding Text
CONDITION:
The annual report filed for the Elementary and Secondary School Emergency Relief (ESSER) Fund in fiscal year 2024 for fiscal year 2023 was filed with incorrect amounts for expenditures for Personnel Services - Benefits.
CRITERIA:
In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabiliza-tion Fund, Part III, Section L., “Reporting” regarding Special Reporting, grantees are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds.
CAUSE:
The District personnel responsible for the report inadvertently understated the amount reported for Personnel Services – Benefits, specifically retirement costs. Retirement costs for the District are reduced by an estimated amount of subsidy received from the state. The retirement costs were reduced by more than the estimated sub-sidy in error, which caused the expenditure to be less than that reflected in their books and records. In addi-tion, the amount reported as expended for staff positions supported by ESSER funds was incorrect.
EFFECT:
The error resulted in an inaccurate report submission to the Pennsylvania Department of Education.
QUESTIONED COSTS:
None
PROPER PERSPECTIVE (SAMPLING):
The District was only required to file one annual report during fiscal year 2023-24 for ESSER. 100% of these reports were tested for compliance. The audit sample was statistically valid.
REPEAT FINDING:
Yes.
RECOMMENDATION:
We recommend management contact the Pennsylvania Department of Education to inquire as to how to re-submit the annual reports with correct amounts for both 2021-22 and 2022-23, agreeing the expenditures to the books and records. In addition, the personnel responsible for the completion of the annual report should ensure the amounts reported on the upcoming annual report for fiscal year 2023-24 contain the correct ex-penditures, specifically retirement costs, and that the expenditures agree with the District’s books and records.
MANAGEMENT RESPONSE:
Management agrees with the recommendations and will contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual reports with correct amounts for both 2021-22 and 2022-23, agreeing the expenditures to the books and records. In addition, the personnel responsible for the completion of the annual report will ensure the amounts reported for the upcoming annual report for fiscal year 2023-24 contain the correct expenditures, specifically retirement costs, and that the expenditures agree with the District’s books and records.