Finding Text
Finding #2025-004; Education Stabilization Fund – CFDA No. 84.425; Year Ended June 30, 2025 CONDITION: During our testing, it was noted that required grant reports were not filed during the 2024-25 fiscal year. This is an indication that internal controls are not in place to ensure compliance with timely and accurate grant filings. CRITERIA: Internal controls should be in place to ensure that grant reporting is performed accurately and in a timely manner. Delinquent reports subject the District to suspended grant payments. (See Finding #2025-002 in the Compliance section.) CAUSE: The cause of the lack of controls is due to multiple issues, as noted in Finding #2025-002 in the Compliance section. Ultimately, a lack of controls over grant approvals, spending timeframes, and workload prioritization contributed to the internal control deficiency and failure to submit required reports. EFFECT: The effect is that the internal controls over grant reporting are not functioning as designed. RECOMMENDATION: We recommend that procedures be modified, and internal controls followed to ensure accurate and timely filing of required grant reports. The management team involved with grants (superintendent, business manager, building principals, etc.) should be involved in modifying the procedures and implementing the controls. Controls should include an enhanced two-person monitoring of the grant process, from application through final reporting. In addition, with the new business office employee hired in August 2023, we recommend the District involve the new staff person to assist in bringing all PDE filings current. MANAGEMENT RESPONSE: Management agrees with the recommendations. The management team involved with grants will work to modify and improve the current procedures and will implement the controls surrounding grant compliance, from the application process through final reporting. The team will also continue to work to enhance our grant monitoring, including resuming management team meetings to keep everyone abreast of the status of grants. In addition, we will begin to gradually involve the new business office employee in grant reporting to improve on compliance with grant reporting requirements.