Finding Text
Reference # and title: 2025-005 Controls and Compliance over Disbursements over ESSER Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education COVID-19 Education Stabilization Funds: Education Stabilization (ESSER III) 84.425U 2021 Criteria or specific requirement: Sound internal controls over federal program require that expenditures be made in accordance with the federal program budgets, properly documented and recorded. Additionally, 2 CFR section 200 requires nonpayroll expenditures over the micro purchase threshold be adequately vetted with a competitive process such as quotes or bids. Condition found: In testing 23 vendor disbursements for the Education Stabilization fund, it was noted that several expenditures initially charged to the program were moved to the general fund. However, it was determined that one check that should have been moved to the general fund due to not being in the federal program budget was not. Therefore, this is considered questioned costs. For the expenditures charged to the ESSER program, 3 of the vendor disbursements, the School Board should have obtained quotes for these costs. Known Questioned Costs: The known questioned costs was based on vendor invoices charged to the federal program for amounts not in accordance with the grant budget, which totaled $46,570. Possible asserted effect (cause effect): Cause: The School Board does not have a consistent process to ensure expenditures are charged correctly per the grant budget nor to ensure quotes are obtained and maintained for purchases in excess of $10,000. Effect: The School Board did not comply with all requirements related to allowable costs and cost principles. Recommendations to prevent future occurrences: The School Board should strengthen policies and procedures to ensure before expenditures are made, the expenditures are compared to the grant budget and quotes are obtained. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2024. View of responsible official: Expenditures for grants are now compared to the budget and quotes will be obtained when required.