Finding Text
Finding 2022-003: COVID-19 Education Stabilization Fund, CFDA 84.425U U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Activities Allowed and Unallowed, Allowable Costs/Cost Principles Grant No.: 4414 Type of Finding: Internal Control Over Compliance (material weakness) and Compliance (material noncompliance) Condition: The District submitted and received reimbursement for indirect costs that exceeded the approved application for funds approved by the Colorado Department of Education, and did not have supporting documentation to substantiate the amount requested. Cause: The District does not have a system of internal control in place to ensure expenditures are in compliance with grant terms and properly supported. Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require the source and application of funds for federally-funded activities be supported by source documentation (2 CFR 200.302(b)(3)). Questioned Costs: $27,743 Effect: The District did not comply with financial management requirements for federal awards. An audit adjustment was proposed to correctly state revenue and expenditure account balances. Recommendation: The District should strengthen its internal controls with adopted policies and procedures to include a review of reimbursement requests to ensure indirect costs are allowable and adequate source documentation is maintained for federally-funded activities.