Finding Text
5. Final Expenditure Reporting
Finding Number: 2023-010
Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund
Federal Award Identification Number / Year: 2023
Federal Agency: U.S. Department of Education
Compliance Requirement: Reporting
Pass-Through Entity: Ohio Department of Education and Workforce
Repeat Finding from Prior Audit? No
Noncompliance and Material Weakness
2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.328 which provides the Federal awarding agency may solicit only the standard, OMB-approved government wide data elements for collection of financial information. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting.
The Ohio Department of Education Grants Manual requires, at the end of the grant period, that entities submit a final expenditure report (FER). A FER must be submitted to show how grant funds were expended during the grant period.
The amounts by object code submitted by the District in the Final Expenditure Report for the American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER, AL # 84.425U), grant year 2023, varied from the underlying system data. The amounts by object code submitted by the District in the Final Expenditure Report for the Elementary and Secondary School Emergency Relief (ESSER II, AL # 84.425D), grant year 2023, varied from the underlying system data. This variance was due to improper monitoring. The failure to properly report expenditures to the grantor can result in corrective action taken by the grantor and obfuscates the true nature of the grants use.
The Treasurer should review the annual Final Expenditure Reports and verify the correct information is provided to the grantor. This information should be reconciled to the underlying system reports.
Material Weakness and Noncompliance documented in Federal Finding 2023-006 in Section 3 above pertaining to ESSER funding contributed to the reporting error.