Finding 1093538 (2023-013)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-29
Audit: 334970
Organization: Guam Department of Education (GU)

AI Summary

  • Core Issue: GDOE reported a $3.5M discrepancy between the FFY 2022 Consolidated Grant Quarterly Report and its accounting records due to weak monitoring controls.
  • Impacted Requirements: GDOE is noncompliant with federal reporting requirements, as accurate financial and program performance data must be submitted annually.
  • Recommended Follow-Up: Enforce stronger monitoring controls and verify reported amounts against accounting records before certification; retain documentation to support reported figures.

Finding Text

Finding No.: 2023-013 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, an Insular Area will submit an annual report containing information covering the program or programs for which the grant is used and administered, including the financial and program performance information required. Condition: The total reported amount expended per the FFY 2022 Consolidated Grant Quarterly Report, dated 10/31/2023, differs from that of underlying accounting records by $3.5M, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the variance does not represent an overpayment. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable reporting requirements. Prior to certifying reports, responsible personnel should verify reported amounts against underlying accounting records and should retain such records to substantiate reported amounts. Finding No.: 2023-013, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Views of Responsible Officials: GDOE disagrees with the finding. GDOE is required to submit an annual report that includes financial and program performance information relative to Consolidated Grants (CG). GDOE’s FFY 2022 CG Quarterly Report, dated October 31, 2023, reported a total expenditure amount that differs from accounting records by $3.5 million. The information cited in the finding references data from a quarterly monitoring tool, which is used for internal tracking and management purposes. However, GDOE is only required to submit programmatic and financial data in its annual report as required in 34 CFR 76.132(a)(5) and further reiterated in the criteria of this finding. The official reporting obligation is limited to the data submitted in the Annual Performance Report (APR). Plan of action and completion date: GDOE disagrees with the finding. However, to ensure the proper enforcement of monitoring controls and allow for a more accurate tool used for internal tracking and management purposes, the Federal Programs Division will remove the cited financial information from its quarterly reports. To best capture this information, the Federal Programs Division will now require this information be submitted and certified by the GDOE accounting team. Auditor Response: The FFY 2022 Consolidated Grant annual performance report was not provided and is not published at GDOE’s website. The annual report given to the auditors in response to this finding was for ALN 84.425 Education Stabilization Fund and not for ALN 84.403.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 517081 2023-004
    Material Weakness
  • 517082 2023-005
    Significant Deficiency
  • 517083 2023-006
    Significant Deficiency
  • 517084 2023-007
    Significant Deficiency
  • 517085 2023-008
    Significant Deficiency
  • 517086 2023-007
    Significant Deficiency
  • 517087 2023-008
    Significant Deficiency
  • 517088 2023-007
    Significant Deficiency
  • 517089 2023-008
    Significant Deficiency
  • 517090 2023-009
    Material Weakness Repeat
  • 517091 2023-010
    Significant Deficiency Repeat
  • 517092 2023-009
    Material Weakness Repeat
  • 517093 2023-010
    Significant Deficiency Repeat
  • 517094 2023-011
    Significant Deficiency
  • 517095 2023-012
    Material Weakness Repeat
  • 517096 2023-013
    Material Weakness
  • 517097 2023-014
    Significant Deficiency
  • 517098 2023-015
    Material Weakness Repeat
  • 517099 2023-016
    Material Weakness
  • 517100 2023-014
    Significant Deficiency
  • 517101 2023-015
    Material Weakness Repeat
  • 517102 2023-016
    Material Weakness
  • 1093523 2023-004
    Material Weakness
  • 1093524 2023-005
    Significant Deficiency
  • 1093525 2023-006
    Significant Deficiency
  • 1093526 2023-007
    Significant Deficiency
  • 1093527 2023-008
    Significant Deficiency
  • 1093528 2023-007
    Significant Deficiency
  • 1093529 2023-008
    Significant Deficiency
  • 1093530 2023-007
    Significant Deficiency
  • 1093531 2023-008
    Significant Deficiency
  • 1093532 2023-009
    Material Weakness Repeat
  • 1093533 2023-010
    Significant Deficiency Repeat
  • 1093534 2023-009
    Material Weakness Repeat
  • 1093535 2023-010
    Significant Deficiency Repeat
  • 1093536 2023-011
    Significant Deficiency
  • 1093537 2023-012
    Material Weakness Repeat
  • 1093539 2023-014
    Significant Deficiency
  • 1093540 2023-015
    Material Weakness Repeat
  • 1093541 2023-016
    Material Weakness
  • 1093542 2023-014
    Significant Deficiency
  • 1093543 2023-015
    Material Weakness Repeat
  • 1093544 2023-016
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.403 Consolidated Grant to the Outlying Areas $26.20M
10.555 National School Lunch Program $16.81M
15.875 Economic, Social, and Political Development of the Territories $5.74M
84.425 Education Stabilization Fund $4.01M
84.027 Special Education Grants to States $2.80M
84.181 Special Education-Grants for Infants and Families $1.67M
84.371 Comprehensive Literacy Development $326,597
12.U01 Army Jrotc $303,008
84.372 Statewide Longitudinal Data Systems $267,608
10.560 State Administrative Expenses for Child Nutrition $257,847
12.U02 Air Force Jrotc $218,197
93.600 Head Start $210,378
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $162,290
84.323 Special Education - State Personnel Development $160,284
12.U03 Marine Jrotc $74,691
10.558 Child and Adult Care Food Program $34,833
84.424 Student Support and Academic Enrichment Program $14,274
10.574 Team Nutrition Grants $12,444
10.568 Emergency Food Assistance Program (administrative Costs) $5,918
10.579 Child Nutrition Discretionary Grants Limited Availability $2,584