Finding Text
U.S. Department of Education Passed Through Kansas State Department of Education Program Name: Elementary and Secondary School Emergency Relief Fund II (ESSER) Federal Assistance Listing Numbers: 84.425D Finding 2022-001 SIGNIFICANT DEFICENCY AND MATERIAL NONCOMPLIANCE Report Submission Criteria: Pursuant to the Code of Federal Regulations (CFR), Title 2 Grants and Agreements, Subpart D Post Federal Award Requirements, Section 200.302 Financial Management (2 CFR ?200.302), ?identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received.? Condition: When investigating the controls related to ESSER quarterly expenditure reporting to the State of Kanas we became aware there is no secondary review. During our examination of the reports submitted for the fiscal year, the report we were told was for the quarter ending June 2022, though dated September 2022, does not tie back to financial records by approximately $38,400. We then asked for the financial reports used at the time of submission and were informed that the records used during the preparation of the report were destroyed upon its submission. Cause: The documentation retention relating to the ESSER reporting and the control for its submission is non-existent. There is also a lack of training between and amongst key positions of management. Effect: The quarterly expenditure report submitted to the State of Kansas is non-comparable to the District?s Schedule 2-18 located in the financial statement?s regulatory required supplemental information. Questioned Costs: $38,400 Recommendations: The District should have an employee, not in the position of District Secretary, compare the Financial Manager?s ESSER report before its submission to the State of Kansas for its accuracy with board approved financial information. After the approval by the secondary review employee, the report submitted should be printed, initialed by the secondary reviewer, stapled with the information used to compile the report and combined with all financial records for the fiscal year. The District should also ensure that the positions involved with the financial reporting of the ESSER funds have adequate training for the recording and reporting of the federal monies. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.