Finding 1909 (2022-007)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-11-15

AI Summary

  • Core Issue: The School District's Final Expenditure Reports for ESSER II and American Rescue Plan grants were understated due to errors in reporting and posting expenditures.
  • Impacted Requirements: Compliance with 2 CFR § 3474.1 and the Ohio Department of Education Grants Manual, which mandate accurate financial reporting and submission of a final expenditure report.
  • Recommended Follow-Up: Implement stronger internal controls and ensure the Treasurer verifies all data before submission to prevent future discrepancies.

Finding Text

2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.328 which provides the Federal awarding agency must solicit only the standard, OMB-approved governmentwide data elements for collection of financial information. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Ohio Department of Education Grants Manual requires, at the end of the grant period, that entities submit a final expenditure report (FER). A FER must be submitted to show how grant funds were expended during the grant period. The amounts submitted by the School District in the Final Expenditure Report for the Education Stabilization Fund Elementary and Secondary School Emergency Relief Grant (ESSER II) (grant year 2022) understated when compared to the underlying system data. This was due to the Treasurer not including expenditures in the amount of $260,404 which were expended during Fiscal Year 2021. In addition, the amounts by object code submitted by the School District in the Final Expenditure Report for the Education Stabilization Fund American Rescue Plan Elementary and Secondary School Emergency Relief Grant (grant year 2022) varied from the underlying system data due to the Treasurer incorrectly posting Purchased Services of $11,733 as Supplies and not including Capital Outlay expenditures in the amount of $158,486. Total expenditures on the Final Expenditure Report were understated by $158,486 when compared to the underlying School District records. These error postings were the result of a lack of proper internal controls and due care when preparing the reports. The Treasurer should properly compile and review the annual Final Expenditure Reports, verifying the correct information is provided to the grantor.

Corrective Action Plan

The School District Treasurer will review all Final Expenditure Report data to ensure its accuracy prior to submission to the Ohio Department of Education. Anticipated Completion Date: June 30, 2024 Responsible Contact Person: Lee Elliott, Treasurer

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1907 2022-005
    Material Weakness
  • 1908 2022-006
    Material Weakness
  • 1910 2022-005
    Material Weakness
  • 1911 2022-006
    Material Weakness
  • 1912 2022-007
    Material Weakness
  • 578349 2022-005
    Material Weakness
  • 578350 2022-006
    Material Weakness
  • 578351 2022-007
    Material Weakness
  • 578352 2022-005
    Material Weakness
  • 578353 2022-006
    Material Weakness
  • 578354 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 - Education Stabilization Fund $1.43M
84.010 Title I Grants to Local Educational Agencies $765,612
10.555 National School Lunch Program $615,275
84.027 Special Education_grants to States $271,941
84.287 Twenty-First Century Community Learning Centers $195,842
10.553 School Breakfast Program $193,065
84.424 Student Support and Academic Enrichment Program $37,024
10.555 Covid-19 - National School Lunch Program $34,915
84.173 Special Education_preschool Grants $9,600
10.649 Covid-19 - Pandemic Ebt Administrative Costs $2,361
21.019 Covid-19 - Coronavirus Relief Fund $1,918