Finding Text
D. FEDERAL AWARD FINDINGS
2024-009 Unallowable Costs - (Other Non-Compliance)
Federal Program Information
Funding agency: Department of Education
Assistance Listing Number: 84.425U
Title: American Rescue Plan – Elementary and Secondary School Relief (ARP ESSER)
Award Year: Fiscal Year 2024
QUESTIONED COSTS: 1,625
CONDITION: During our testing of 28 payroll disbursements, we noted the following:
• For 3 out of 28 payroll transactions tested the salary rate paid to the employee did not agree to the pay rate per the authorized contract.
• For 6 out of 28 payroll transactions tested (payroll transactions were for costs being reclassified from other funds) the District failed to provide sufficient support documentation.
CRITERIA: Elementary and Secondary School Emergency Relief Funds must be used in a manner consistent with all requirements of the Educational Department General Administrative Regulations (EDGAR), and 2 CFR 200, to support activities allowable under the respective programs. Expenditures should be support by approved purchase orders and any approved changes should have correct documentation before payments are made.
EFFECT: The District is not in compliance with 2CFR 200 in regard to complete record documentation and obtaining approval of purchases with the use of federal funds.
CAUSE: District personnel failed to obtain approvals for purchases with the use of federal funds.
RECOMMENDATION: We recommend the District implement additional review procedures of federal funds to ensure all expenses are supported by approved contracts and that all costs reclassified from others funds are allowable under the award and are properly supported.
MANAGEMENT’S RESPONSE: Management will be reviewing all payroll contracts once entered in the accounting software. This will ensure that all costs are classified to the correct funds and allowable under the federal awards.
RESPONSIBLE PARTY/TIMELINE TO CORRECT: Superintendent and Business Manager will have this addressed and rectified by June 30, 2025.