Finding Text
Federal Program
Education Stabilization Fund - Passed through the Pennsylvania Department of Education
COVID-19 - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24
COVID-19 - ARP ESSER Learning Loss Set Aside ALN 84.425U;
Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24
Criteria
In accordance with Uniform Guidance Post Federal Award Requirements, the District must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition
The District did not maintain effective internal controls over the Federal awards. Two invoices were coded to the grants that were paid without documented approval.
Cause
The District did not follow documented internal control procedures which require all disbursements to have an approved purchase order or invoice signed by an administrator.
Effect
By paying invoices coded to Federal grants without approval, the District is not verifying the allowability of invoices. This increases the risk that unallowable activities and costs can be charged to the Federal grants and go undetected.
Questioned Costs
None.
Context
The Education Stabilization Fund grant nonpayroll costs were made up of 23 invoices. We tested three individually significant and five sampled invoices. Of the five sampled invoices, we found that two invoices were paid without approval. However, no discrepancies were identified in the allowability of the invoices.
Repeat Finding
No.
Recommendation
We recommend the District follow documented internal control procedures requiring all disbursements have an approved purchase order or signed invoice. This will ensure that invoices coded to Federal grants are reviewed for allowability before they are applied to the grants.
Management Response
See corrective action plan included in this report package.