Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Support and Academic Enrichment Program
Assistance Listing Number: 84.424
Federal Award Identification Number and Year: 201572 (7/1/19-9/30/22)
Award Period: July 1, 2019 through September 30, 2022, Liquidation Date November 30, 2022
Type of Finding: Reporting Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement:
2 CFR part 200.502 and 510 states that the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended.
Condition:
The School System inaccurately reported expenditures of $27,779 on the schedule of expenditures of federal awards.
Questioned costs:
$27,779
Context:
Grant award 201572 (which is tracked in Fund 7010) had a period of performance from July 1, 2019, through September 30, 2022, with a liquidation cut off period of November 30, 2022. On the Annual Financial Report (AFR) submitted to the Maryland State Department of Education (MSDE) in September 2022, the School System reported that the full award amount of $2,665,293 was expended. The School System expensed an additional $22,265 (net of adjustments) to the grant in fiscal year 2023 and an additional $27,799 in fiscal year 2024 to fulfill the $2,665,293 grant award amount. This caused a total amount of $27,779 of disbursements to be reported on the FY24 Schedule of Expenditures and Federal Awards.
Cause:
Accounting staff identified and processed adjustments subsequent to the period of performance and liquidation period.
Effect:
The Department was not compliant with the grant’s period of performance which could result in the grantor’s disallowance of the costs.
Recommendation:
We recommend that the School system review its procedures to ensure that amounts reported on the SEFA are in accordance with 2 CFR part 200.502 and 510.
Views of responsible officials:
The $27,799 was removed from the FY24 SEFA. In an ongoing effort to ensure that all grants are reported correctly and in line Grant’s Administrator will hold regular meetings (at least quarterly) with the Budget Analyst and/or Grants Accountant assigned to these grant funds. The Grants Accountant will also provide transaction and payroll detail reports to the Grants Administrator on a regular basis for review and correction when necessary.