Finding Text
Condition: District did not submit the required ARP ESSER FS-10F Final Expenditure Report by the required deadline. The reporting filing deadline was extended to 10/15/2024, the District submitted the report on 11/25/2024. Criteria: Under the OMB Compliance Supplement (Education Stabilization Fund – 84.425), recipients must submit required ARP ESSER financial reports accurately and within deadlines established by the State Education Agency (SEA). Federal regulation (2 CFR §200.302) requires recipients to maintain effective internal controls and ensure that all required federal reports are submitted timely, complete, and accurate. Cause: The late submission resulted from insufficient internal controls to monitor required federal reporting deadlines. In particular, the District did not maintain a centralized compliance calendar to track and manage these obligations. Effect: Failure to submit the ARP ESSER reports timely puts the District at risk of noncompliance with federal requirements, may impair the U.S. Department of Education’s and the SEA’s ability to monitor program performance and expenditures, and may affect future funding decisions. Questioned Costs: None. This finding relates to reporting timeliness only and does not involve unallowable costs. Perspective: This issue is considered a systemic noncompliance for the fiscal year ended 2025, based on testing of the one mandatory FS-10F Final Expenditure Report required for 84.425U. Repeat: This is not a repeat finding. Recommendation: We recommend that the District implement a formal federal reporting compliance calendar that includes ARP ESSER deadlines as well as develop written procedures requiring periodic review of upcoming deadlines. Auditee’s Response: The District agrees with the finding. See attached corrective action plan.