Finding 1118436 (2024-002)

2024-002. Allowable Costs/Cost Principles: Final Expenditure Report for a Federal or State Project (FS-10-F) United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: The District commits to expenditures using federal funds that comply with program guidelines established by federal agencies and in accordance with the State approved program budget. Condition: Testing of the expenditures charged to the grant, determined that costs were in excess of the adjusted budget amount because the actual number of students was less than the target number of students. Cause: The District included certain program costs to be funded by the original amount of the grant award in their final total federal expenditures. The District had not reduced expenditures charged to the grant, as the monitoring of the program, specifically student count data, had not been communicated. Effect: The District included expenditures for reimbursement when calculating its reimbursement from the State, which were in excess of the adjusted budget. Questioned Costs: None, the District will provide the funding for the expenditures in excess of the adjusted budget. Context: The budget was reduced by $21,945, since the actual number of students served was 90% of the target number of students to be served. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor performance indicators for grants in terms of expenditures, and review expenditures charged to grants prior to submitting final cost reports to the New York State Education Department for reimbursement. View of Responsible Officials of Auditee: Management agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the procedures for monitoring performance indicators, as well as the review of final expenditures charged to grants to ensure that they are reimbursable costs under the guidance provided by federal agencies.