Finding Text
ALN 84.010 - Title I - Grant # 241530 2324 - Grant Ending September 30, 2024 Condition and Criteria: 2 CFR 200.403 of the Uniform Guidance mandates that only necessary, and allowable costs be drawn down off of federal grants. During the audit, we found that the prior fiscal year’s accrued payroll, which was drawn off of the grant in the previous fiscal year, was drawn off of the grant a second time in the current fiscal year. Effect: The District unintentionally drew payroll expenses off of the Title I grant a second time. Cause: The prior year accrued payroll related to Title I was not reversed out of the current year expenses prior to the Final Expenditure Report being prepared. Context: Management believed that all accrued payroll had been reversed out of the current fiscal year prior to preparing the Final Expenditure Report and did not intend to draw those expenses a second time. Questioned Costs: $53,509 Auditors' Recommendation: We recommend that management implement procedures to ensure that all accruals charged to federal grants are properly reversed in the subsequent fiscal year to ensure that duplicate draws on those same expenses are not made. Views of Responsible Officials and Planned Corrective Actions: The District understands the issue and will ensure that all payroll accruals are fully reversed at the start of the new fiscal year, to ensure that expenses are not drawn a second time. Please see the attached Corrective Action Plan prepared by the District.