Finding Text
2023-2 – Reporting Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity - Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports to be filed by the 10th working days of after each quarter. Additionally, a final expenditure report is required to be filed within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of these reports. Condition: The District filed the Reconciliation of Cash on Hand Quarterly Report for Grant # 223-21-0229 after the 10-day requirement for the quarters ending September 30, March 31, and June 30 of fiscal year 2023. Additionally, The District was unable to provide support to tie the reported expenditures back to their general ledger. The District did not file any of the required Reconciliation of Cash on Hand Quarterly Reports for Grant #225-21-0229 and Grant #181-21-2228 during fiscal year 2023. Also, the District did not file the required final expenditure report for Grant #181-21-2228 even though all funds were expended during fiscal year 2023. Cause: The District’s internal controls and review process were not operating as designed. As a result of a lack of effective review, expenditures were not reported on a cumulative basis on the Reconciliation of Cash on Hand Quarterly Reports. Effect: The District is not in compliance with the reporting requirements of the program, which could potentially lead to withholding of grant funds by the granting agency. Questioned Costs: None Recommendation: We recommend that the District strengthen internal controls over grant reporting to ensure all required Reconciliation of Cash on Hand Quarterly Reports and final expenditure reports are prepared accurately and submitted timely in accordance with grant requirements. The District should implement a formal review and monitoring process and provide training to staff responsible for grant reporting to ensure ongoing compliance. Views of Responsible Officials: Management is in agreement with the finding.