Finding Text
Finding No. 2025-002 Information on the Federal Program U.S. Department of Education Child Nutrition Cluster: Passed-through N.J. State Department of Education: Title I Grants to Local Educational Agencies Assistance Listing 84.010 Criteria or Specific Requirement The Office of Management and Budget’s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is allowable costs and cost principles. Charges to the grant must be allowable and in accordance with all cost principles of the program. Condition The School District charged expenditures that are outside the scope of allowable program activities for the Title I program. Questioned Costs Known questioned costs were $218,196.43. The questioned costs were calculated based on a detailed review of expenditures charged to the Title I program during the audit period. The auditors identified specific transactions that did not meet the allowability requirements under 2 CFR Part 200. The total questioned costs represent the sum of those transactions. Context During our payroll testing for charges to the Title I grant, we noted several employee stipends for the December and June payrolls were incorrectly charged to the Title I program. Effect or Potential Effect As a result, the Title I program was charged for unallowable costs totaling $218,196.43, resulting in questioned costs. This reduces the funds available for allowable program activities and may require repayment to the granting agency. Cause The condition is the result of a miscommunication of what the proper account to charge employee stipends. The auditee did not have sufficient procedures in place to ensure that costs were evaluated for allowability prior to being charged to the Title I grant. Identification as a Repeat Finding The condition did not exist in the immediately preceding fiscal year. Recommendation The School District should review internal controls over the charging of grant expenditures to ensure expenditures are recorded to the proper account. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.