Finding Text
Finding: The District charged costs to the ESF Program that are not allowable to the program. Criteria: The May 2024 Office of Management and Budget Compliance Supplement states the following for Compliance Requirements – Allowable Costs and Activities – states “…demonstrate consistent with the purpose of the ESF, which is to prevent, prepare for, and respond to COVID-19.” “Section 313(3) of the CRRSA Act includes “additional” LEA allowable uses of funds under ESSER II, in particular addressing learning loss; preparing schools for reopening; and testing, repairing, and upgrading projects to improve air quality in school buildings…” Condition: The District charged expenditures to the federal program for copier leases, faxing service, tech support service, shipping costs for an undocumented purpose, and financial software.Cause: Journal entries were posted to move expenditures from several accounts to the federal program without considering program requirements or specifically identifying invoices to code to the federal program. Effect: Unallowable costs could be charged to the program. Questioned costs: $241,407 Context: Through the testing of forty-two randomly selected ESF program disbursements that occurred during the fiscal year, we noted twelve instances in which the goods or services purchased did not appear to be allowable activities. The District expended $1,573,182 on the program for fiscal year 2024. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District implement a process to ensure all charges to the program comply with program requirements.