Finding 369867 (2023-006)

Material Weakness
Requirement
F
Questioned Costs
$1
Year
2023
Accepted
2024-02-20

AI Summary

  • Core Issue: Education Stabilization Funds were used for capital expenses without prior approval from the Pennsylvania Department of Education (PDE).
  • Impacted Requirements: Compliance with Uniform Grant Guidance mandates prior approval for using funds on building improvements and equipment.
  • Recommended Follow-Up: Management should finalize communication with PDE about unapproved projects and ensure staff are trained on grant requirements, along with implementing a review process for future compliance.

Finding Text

CONDITION: Education Stabilization Funds were used for capital expenditures without obtaining prior approval from the pass-through entity, the Pennsylvania Department of Education (PDE). CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section F., “Equipment/Real Property Management,” with prior approval by the pass-through entity, subrecipients may use Education Stabilization Funds for improvements to buildings or for equipment that meet the overall purpose of the Education Stabilization Fund program. CAUSE: The District personnel responsible for submitting the grant applications for Education Stabilization Funds were not aware of the requirement to obtain prior approval from PDE for improvements and equipment. EFFECT: The error resulted in potential unallowed costs for the amounts the District expended on building improvements and equipment. QUESTIONED COSTS: $127,548 PROPER PERSPECTIVE (SAMPLING): 100% of the non-payroll and benefit expenditures greater than $5,000 (federal per-unit threshold) were selected for testing. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to handle the projects not pre-approved. In addition, personnel responsible for Education Stabilization Fund programs should become familiar with the grant requirements. We further recommend the implementation of a review process by management to ensure the grants are managed correctly. MANAGEMENT RESPONSE: Management agrees with the recommendations and has contacted the Pennsylvania Department of Education to determine how to handle the projects not pre-approved. PDE has advised that the pre-approvals can still be obtained, and management will do the necessary paperwork to become compliant.

Categories

Questioned Costs Subrecipient Monitoring Equipment & Real Property Management

Other Findings in this Audit

  • 369864 2023-006
    Material Weakness
  • 369865 2023-006
    Material Weakness
  • 369866 2023-006
    Material Weakness
  • 369868 2023-006
    Material Weakness
  • 369869 2023-007
    Material Weakness
  • 369870 2023-007
    Material Weakness
  • 369871 2023-007
    Material Weakness
  • 369872 2023-007
    Material Weakness
  • 369873 2023-007
    Material Weakness
  • 946306 2023-006
    Material Weakness
  • 946307 2023-006
    Material Weakness
  • 946308 2023-006
    Material Weakness
  • 946309 2023-006
    Material Weakness
  • 946310 2023-006
    Material Weakness
  • 946311 2023-007
    Material Weakness
  • 946312 2023-007
    Material Weakness
  • 946313 2023-007
    Material Weakness
  • 946314 2023-007
    Material Weakness
  • 946315 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $60,128
84.424 Student Support and Academic Enrichment Program $15,148
84.367 Improving Teacher Quality State Grants $14,435
84.027 Special Education_grants to States $13,233
84.010 Title I Grants to Local Educational Agencies $11,046
21.019 Coronavirus Relief Fund $10,633
10.555 National School Lunch Program $9,916
10.582 Fresh Fruit and Vegetable Program $7,210
84.425 Education Stabilization Fund $3,611
84.358 Rural Education $2,273
10.649 Pandemic Ebt Administrative Costs $628