Finding 1147454 (2024-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-07-10

AI Summary

  • Core Issue: Internal controls for approving expenses were ineffective, leading to potential risks in managing federal funds.
  • Impacted Requirements: Compliance with 2 CFR 200.303 and internal control standards was not met, risking disallowed costs.
  • Recommended Follow-Up: Strengthen approval processes to ensure all expenditures are properly authorized before purchases are made.

Finding Text

Item 2024-001 Activities Allowed/Allowable Cost Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period – Years ended September 30, 2024 (84.425U) Criteria – Per 2 CFR 200.303, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should follow guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – Controls in place did not operate properly to ensure that expenses were approved for allowability prior to purchase. Cause – Officials relied on approved budget for ESSER to substantiate the purchase of supplies made with ESSER funds. Effect – Lack of controls for proper approval on disbursements could lead to disallowed costs. We noted that certain payments lacked approval, however, our audit disclosed no instances of unallowable costs. Questioned Costs – N/A. Recommendation – We recommend the strengthening of controls to ensure that all expenses are properly approved by adequate officials as noted in procedures. Management’s Response – The Board will strengthen the controls in place to ensure that all procedures have been followed prior to expenditures being encumbered.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 571012 2024-001
    Significant Deficiency
  • 571013 2024-002
    Material Weakness
  • 1147455 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund $1.86M
84.010 Title I Grants to Local Educational Agencies $707,873
84.027 Special Education Grants to States $375,072
10.553 School Breakfast Program $169,989
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $70,660
10.555 National School Lunch Program $52,968
84.424 Student Support and Academic Enrichment Program $42,300
10.582 Fresh Fruit and Vegetable Program $42,090
84.358 Rural Education $39,377
84.048 Career and Technical Education -- Basic Grants to States $20,849
84.173 Special Education Preschool Grants $18,646
96.001 Social Security Disability Insurance $520