Finding Text
Finding 2024-009 - Material Weakness - Allowable Costs/Cost Principles Federal Assistance Listing Number: 84.367, 84.425D, 84.425U and 84.425W Federal Program Name: Supporting Effective Instruction State Grants and COVID-19 - Education Stabilization Fund Federal Agency Name: U.S. Department of Education Pass-Through Entity Name: Wisconsin Department of Public Instruction Pass-Through Entity Identification Number: 2024-403619-DPI-TIIA-365, 2022-403619-DPI-ESSERFII-163 and 2022-403619-DPI-ESSERFIII-165, 2022-403619-DPI-ARPHCYII-173 Criteria: In accordance with 2 CFR 200.303(a), 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. Condition/Context: The District supports time charged to federal awards via semi-annual certifications which are approved by the grant administrator or the building principal. Supporting Effective Instruction State Grants (ALN 84.367) The final reimbursement claim for the program was due to Wisconsin Department of Public Instruction (DPI) on September 30, 2024; however, the final reimbursement claim was not submitted to DPI until January 9, 2025, due to an extension. Thirteen of the 40 individuals sampled did not have their semi-annual certifications approved timely and were approved after the due date of the final reimbursement claim, but before the date of the actual submission of the final reimbursement claim. COVID-19 – Education Stabilization Fund: Elementary and Secondary School Emergency Relief (ESSER II) (ALN 84.425D), American Rescue Plan – Elementary and Secondary School Emergency Relief (ARP ESSER) (ALN 84.425U) and American Rescue Plan - Elementary and Secondary School Emergency Relief - Homelessness Children and Youth (84.425W) The final reimbursement claims for the ESSER II and the ARP ESSER programs were due to DPI on September 30, 2023, and September 30, 2024, respectively; however, the final reimbursement claims were not submitted to DPI until December 8, 2023, for ESSER II and December 6, 2024, for ARP ESSER. Five of the 40 individuals sampled had their semi-annual certifications not approved timely and were approved after the due date of the final reimbursement claims, but before the date of the actual submission of the final reimbursement claim. The samples were not statistically valid. Cause: There was a lack of internal control over the timely approval of the semi-annual certifications. Effect or Potential Effect: By not having an approved semi-annual certification before the date of the final reimbursement claims, unallowable costs may be submitted for reimbursement. Questioned Costs: None noted. Recommendations: We recommend that controls be implemented that will allow costs to be reviewed and fully supported prior to the date the final reimbursement claims are due to DPI. Views of Responsible Official: Management concurs with the finding.