Finding Text
Finding Number: 2023-013
Information on the Federal Program
Federal Agency: United States Department of Education
Program Names: American Rescue Plan – Elementary and Secondary School Emergency Relief
(ARP ESSER)
AL: 84.425U
Federal Award Year: 2023
Criteria: The cost principles in 2 CFR, Part 200, Subpart E (Cost Principles) are required for the administration of federal awards.
Condition Found: During our audit of allowable costs, we noted the Organization had service costs charged to the
grant for which they were unable to provide verifiable support for the costs or activities. Specifically:
- The sample included six expenditures charged to the grant by journal entry for which the
Organization was unable to provide supporting documentation.
- The sample tested included five disbursements for which the Organization was unable to
provide invoices to support the transactions.
Context: A nonstatistical sample of forty expenditures under the ARP ESSER Grant were selected for testing, of which eleven transactions could not be supported to determine if they were consistent with the Cost Principles.
Questioned Costs: $237,328
Cause and Effect: The Organization was unaware of the Allowable Costs and Cost Principles requirements as to the
expenditures charged to the grant.
Identification as a Repeat Finding, if applicable
N/A
Recommendation: We recommend the Organization implement and monitor a process to retain documentation for all transactions and journal entries charged to the grants to support allowable costs under the Federal Cost Principles.
Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.