Finding 3636 (2022-006)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2022
Accepted
2023-12-06
Audit: 5640
Organization: Guam Department of Education (GU)

AI Summary

  • Core Issue: GDOE charged costs after the federal award's period of performance ended.
  • Impacted Requirements: Noncompliance with period of performance regulations, although no questioned costs were reported due to corrections made.
  • Recommended Follow-up: Enforce monitoring controls to ensure costs are only charged within the valid period and verify compliance before charging expenses.

Finding Text

Finding No.: 2022-006 Federal Agency: U.S. Department of Education AL Program: 84.181 Special Education – Grants for Infants and Families Area: Period of Performance Questioned Costs: $0 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Condition: GDOE charged costs to a federal award after the period of performance ended, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. No questioned cost is reported because GDOE subsequently provided journal entry JNL 38, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. In GDOE’s Munis system, if the Human Resources (HR) pay records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on the project leads request to update accounts to current grant year. GDOE corrected the improperly charged payroll expenditures to the proper grant year via the journal voucher process. GDOE’s Corrective Action Plan includes additional details.

Corrective Action Plan

Finding No.: 2022-006 Federal Agency: U.S. Department of Education AL Program: 84.181 Special Education – Grants for Infants and Families Area: Period of Performance Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. In GDOE’s Munis system, if the Human Resources (HR) pay records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on the project leads request to update accounts to current grant year. GDOE corrected the improperly charged payroll expenditures to the proper grant year via the journal voucher process. Plan of action and completion date: The GDOE Business Office will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will timely communicate to the Human Resources and Business Office any changes to accounts charged for federally funded payroll expenditures. Plan to monitor and responsible officials: GDOE Comptroller (vacant), will assign an accountant to monitor the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers, Federal Compliance review team will be responsible for timely communicating any changes in grant year funding to HR.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 3632 2022-004
    Significant Deficiency
  • 3633 2022-005
    Significant Deficiency
  • 3634 2022-004
    Significant Deficiency
  • 3635 2022-005
    Significant Deficiency
  • 3637 2022-007
    Significant Deficiency
  • 3638 2022-008
    Material Weakness
  • 3639 2022-009
    Significant Deficiency Repeat
  • 3640 2022-010
    Significant Deficiency
  • 3641 2022-009
    Significant Deficiency
  • 3642 2022-010
    Significant Deficiency
  • 3643 2022-009
    Significant Deficiency
  • 3644 2022-010
    Significant Deficiency
  • 580074 2022-004
    Significant Deficiency
  • 580075 2022-005
    Significant Deficiency
  • 580076 2022-004
    Significant Deficiency
  • 580077 2022-005
    Significant Deficiency
  • 580078 2022-006
    Significant Deficiency
  • 580079 2022-007
    Significant Deficiency
  • 580080 2022-008
    Material Weakness
  • 580081 2022-009
    Significant Deficiency Repeat
  • 580082 2022-010
    Significant Deficiency
  • 580083 2022-009
    Significant Deficiency
  • 580084 2022-010
    Significant Deficiency
  • 580085 2022-009
    Significant Deficiency
  • 580086 2022-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.403 Consolidated Grant to the Outlying Areas $29.12M
10.555 National School Lunch Program $14.22M
15.875 Economic, Social, and Political Development of the Territories $5.74M
84.181 Special Education-Grants for Infants and Families $1.47M
12.U01 Army Jrotc $306,137
84.372 Statewide Longitudinal Data Systems $295,823
84.323 Special Education - State Personnel Development $282,177
84.371 Striving Readers $248,220
12.U02 Air Force Jrotc $237,290
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $196,814
93.600 Head Start $195,216
84.425 Education Stabilization Fund $181,866
10.541 Child Nutrition-Technology Innovation Grant $131,428
10.560 State Administrative Expenses for Child Nutrition $93,913
10.568 Emergency Food Assistance Program (administrative Costs) $43,844
10.575 Farm to School Grant Program $42,690
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $36,971
10.558 Child and Adult Care Food Program $32,401
10.574 Team Nutrition Grants $19,946
84.027 Special Education_grants to States $2,014
12.U03 Marine Jrotc $1,285