Finding Text
2024-003 Department of Education
Education Stabilization Fund: Higher Education Emergency Relief Find (HEERF)
Federal Financial Assistance Listing 84.425F Institutional Portion
Award Number P425F202657, Award Years 2020 and 2021
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Material Weakness in Internal Controls over Compliance and Material Non-Compliance
Criteria: The CARES Act, CRRSSA and the American Rescue Plan Act (ARP) sets forth the criteria for allowable
costs and activities.
Condition: During testing over the requirements, we noted that, in 28 of 40 expenses tested, reimbursement
was received for expenses for items that were never purchased. The total for these 28 items was $10,682.
Additional review noted a total of $132,071 for total funding received but not spent.
Cause: The School District used outstanding purchase obligations to request reimbursement at the end of the
liquidation period, but did not spend all of the money.
Effect: The School received reimbursement for items that were never purchased.
Questioned Costs: $132,071
Context/Sampling: A nonstatistical sample of 60 expenses submitted for reimbursement out of 410 total
expenses.
Repeat Finding from Prior Year(s): No.
Recommendation: We recommend a review be completed to ensure that all reimbursements have proper
expenses to back up the request submitted. We also recommend that, if new funding is received, a committee
be set up by the School District to be able to review expenses and ensure that funding is spent on proper items
and requests for reimbursement are only made once expenses have been paid.
Views of Responsible Officials: Management agrees with the finding.