Finding Text
2022-003) Preparation of Schedule of Expenditures and Federal Awards Questioned Costs: N/A Assistance Listing Numbers Name of Federal Program or Cluster 97.036 Disaster Grants-Public Assistance (Presidentially Declared Disasters) 84.425D ?Achieve? ? COVID-19 - ESSER II Formula 32.009 Emergency Connectivity Fund Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants along with the amount of funds disbursed to sub-recipients. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the identification of federal expenditures, timely and accurate preparation and review of the amounts reported on the SEFA. Condition: The initial SEFA prepared by the School Bord?s did not accurately include or identify all the federal program expenditures. Universe/ Population: None Sample size: None Cause: The grant awards or agreements were not properly interpreted or reviewed to identify or determine the proper amount to be reported as expenditures or SEFA. Effect: The SEFA provided to us for audit did not contain all the federal programs or the correct amounts of federal expenditures based on the terms of the grant awards and requirements to reporting on some of the federal programs reported. Inaccuracies or excluding information on the SEFA causes delays in completing the single audit and risks filing a SEFA that is incomplete or inaccurate. Recommendation: The School Board should strengthen its controls including its review and approval processes over the identification of federal programs, and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures. View of Responsible Official: Management agrees with finding. Disaster Grants through FEMA are managed by rules and processes that are not easily accounted for in traditional accounting systems. ESSER II and III grants relatively new and designed to be implemented over multiple years leading to shifting of expenditures from one grant to another depending on spending priorities. Procedures will be strengthened to fully and accurately identify all federal program expenditures and record in the appropriate accounting funds.