Finding Text
Material Weakness 2023-010 Unsupported Expenditures - Title I, Impact Aid and ESSER Grants Federal Program and Award: Title I, Impact Aid and ESSER Grants The objective of the Title I Grants to Local Education Agencies (CFDA 84.010A) is to provide financial assistance to local educational agencies (LEAs) with high numbers or high percentages of children from low-income families to help ensure that all children meet challenging state academic standards. The objective of the Education Stabilization Fund - ESSER (CFDA 84.425D) is to provide state educational agencies (SEAs) and LEAs, including charter schools that are LEAs, with emergency relief funds to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools. The objective of the Impact Aid Program (CFDA 84.041 A) is to provide financial assistance to LEAs whose enrollments or revenues are adversely affected by federal activities, including the presence of tax-exempt federal property or federally connected children. CFDA Numbers: 84.010A, 84.425D, and 84.041A Pass-Through Entity: Only the Title I grant , Passed through the State of Wyoming Department of Education. Subrecipient Information: None Criteria The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance, 2 CFR Part 200) require that the District maintain records that adequately identify the source and application of funds for federally funded programs, including Title I Grants to Local Educational Agencies (Assistance Listing 84.010A), Education Stabalization Fund - ESSER (Assistance Listing 84.425D), and Impact Aid (Assistance Living 84.041A). Such records must contain information pertaining to federal awards, including expenditures, and be supported by source documentation. Additonally, the district is required to ensure that financial reports submitted for these programs are accurate, complete, and supported by underlying accounting records. Type of Compliance Requirement: Reporting Direct of Indirect: Direct Condition The District did not provide adequate documentation to support the reports submitted, and the information provided was not in a form that could be reasonably understood or reconciled to underlying records to verify the accuracy of amounts reported. Cause The District lacked personnel with the necessary skills, knowledge, and experience to properly maintain accounting records and administer grant reporting for federal programs. Although the District engaged an external certified public accountant to assist with grant reporting, District personnel did not provide sufficient docuementation or timely responses to support the preparation and accuracy of required reports. Effect Reports required to be filed with the respective granting agencies for Title I (Assitance Listing 84.010A), Education Stabalization Fund - ESSER (Assitance Listing 84.425D), and Impact Aid (Assitance Listing 84.041A) may have been inaccurate, incomplete, or not supported by adequate documentation, resulting in noncompliance with federal reporting requirements. Questioned Costs - None Prior Year Finding: Yes, Education Stabilization Fund Reporting Recommendation The District should implement and maintain a comprehensive system of controls over federal reporting, including documenting and retaining complete and accurate records for all federal expenditures in accordance with Uniform Guidance requirements. Supporting documentation for all reported amounts should be maintained in a centralized, secure, and electronic environment to ensure accessibility and continuity. Additionally, the District should establish formal review procedures, including review of reports by an individual independent of the preparation process, to ensure reported information is accurate, complete, and supported by underlying record. The Distict should also implement policies and procedures to ensure that all relevant documentation is retained and preserved during personnel turnover.