Finding 1225537 (2024-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-08-03

AI Summary

  • Core Issue: The School missed the deadline for submitting the Single Audit Reporting Package to the FAC and PDE.
  • Impacted Requirements: This delay violates 2 CFR §200.512(a) regarding timely federal reporting.
  • Recommended Follow-Up: Implement procedures to ensure future submissions meet deadlines and coordinate with external auditors for timely audits.

Finding Text

Federal Program: COVID-19 Education Stabilization Fund (ESSER II and ARP ESSER) – 84.425D/U Criteria: Based on requirements set forth by 2 CFR §200.512(a), the School is required to submit the Single Audit Reporting Package to the Federal Audit Clearinghouse (FAC) and the Pennsylvania Department of Education (PDE) no later than the earlier of thirty calendar days after the receipt of the auditor's report or nine months after the end to the audit period. Condition: The School did not submit the Single Audit Reporting Package to the FAC or the PDE prior to the March 31, 2025, deadline. Cause: The submission was delayed because the audited financial statements were not completed in a timely manner. Also, ss noted in Finding 2024-002, the School has a significant deficiency in internal control over financial reporting related to the preparation of the Schedule of Expenditures of Federal Awards. Effect or Potential Effect: As a result of the delayed completion of the audited financial statements, the School was unable to meet the FAC and PDE filing deadlines required under 2 CFR §200.512(a), resulting in noncompliance with federal reporting requirements. Questioned Cost: $0 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the School implement procedures to ensure that future Single Audit Reporting Packages are completed and submitted to the FAC and PDE within the required timeframes to maintain compliance with federal reporting requirements. View of Responsible Officials and Planned Corrective Action: Management will coordinate with external auditors to ensure timely completion of the audit and to ensure compliance with 2 CFR §200.512(a) requirements.

Corrective Action Plan

Description of Finding: The School did not submit the Single Audit Reporting Package to the FAC or the PDE prior to the March 31, 2025, deadline. Statement of Concurrence or Nonconcurrence: the School acknowledges the finidng related to the late remittance of the Single Audit Reporting Package to the FAC and the PDE. The late submission resulted frm inadequate monitoring of regulatory reporting deadlines and the absence of a formal process for tracking, reviewing, and submitting the Single Audit REporting Package. Responsibilities for completing and submitting the package were not clearly documented, and there was no secondar review to verify that all required submissions had been completed on time. Corrective Action: The School will remit the Single Audit Reporting Package to the FAC and the PDE within 30 days of when the June 30, 2024 audit is completed and issued. The School will retain documentation of the submission and confirmation of receipt. Moving forward the School will develop and maintain a compliance calendar identifying all federal and state reporting. The School will develop written proce-dures outlining the steps for preparing, reviewing, approving, and submitting the Single Audit Reporting Package deadlines, including Single Audit submission requirements. Projected Completion Date: The School has hired an outside accounting and management firm effective July 1, 2025. The School is cur-rently working with the firm on the corrective actions outlined here. The School will remit the Single Audit Reporting Package to the FAC and the PDE, and develop written policies as outlined above within 30 days from the issuance of the June 30, 2024 audit.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1225523 2024-002
    Material Weakness Repeat
  • 1225524 2024-004
    Material Weakness Repeat
  • 1225525 2024-005
    Material Weakness Repeat
  • 1225526 2024-002
    Material Weakness Repeat
  • 1225527 2024-003
    Material Weakness Repeat
  • 1225528 2024-004
    Material Weakness Repeat
  • 1225529 2024-005
    Material Weakness Repeat
  • 1225530 2024-002
    Material Weakness Repeat
  • 1225531 2024-003
    Material Weakness Repeat
  • 1225532 2024-004
    Material Weakness Repeat
  • 1225533 2024-005
    Material Weakness Repeat
  • 1225534 2024-002
    Material Weakness Repeat
  • 1225535 2024-003
    Material Weakness Repeat
  • 1225536 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $149,847
84.027 SPECIAL EDUCATION GRANTS TO STATES $55,140
10.553 SCHOOL BREAKFAST PROGRAM $28,238
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $13,754
10.555 NATIONAL SCHOOL LUNCH PROGRAM $12,400
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $12,308
84.425 EDUCATION STABILIZATION FUND $3,615
10.649 PANDEMIC EBT ADMINISTRATIVE COSTS $653