Finding 370081 (2022-002)

CORRECTIVE ACTION PLAN February 9, 2024 Winchester Public Schools respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 1909 Financial Drive Harrisonburg, VA 22801 Audit period: June 30, 2022 The findings from the June 30, 2022 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-001: Controls Over Cutoff - Elementary and Secondary School Emergency Relief (ESSER) - AL# 84.425D, 84.425U (Significant Deficiency in Controls Over Compliance) Condition: During our review of ESSER expenditures, we noted approximately $14,000 of allowable costs that were recorded in the wrong period. Criteria: The expenditures mu st be reported in the proper period for accurate reporting on the Schedule of Expenditures of Federal Awards. Cause: Procedures in place to ensure all expenditures are recorded in the proper period were not followed. Effect: Approximately $14,000 of allowable costs were recorded in fiscal year 2022 instead of fiscal year 2021. Questioned Cost Amount: NIA- the expenditures in question are allowable costs that were reported in the wrong fiscal year. Perspective Information: Two items out of 25 tested. Context: The individual overseeing the project did not provide invoices to Finance in a timely manner. Recommendation: We recommend continued communications with all departments to ensure all invoices are being submitted to Finance in a timely manner in order to record expenditures in the proper reporting period. Views of Responsible Officials and Planned Corrective Action: The Director of Finance of Winchester Public Schools will communicate the importance of getting invoices to the School's finance department in a timely manner. 2022-002: Unallowable Costs - Elementary and Secondary School Emergency Relief (ESSER) - AL# 84.425D, 84.425U Condition: As part of our audit, we noted one instance where payroll for an elementary school teacher was incorrectly charged to this program. Criteria: All expenditures being coded to Federal programs must be reviewed to ensure they are an allowable cost. Cause: Procedures in place to ensure all expenditures are allowable were not followed. Effect: Payroll for one elementary school teacher was incorrectly recorded as an ESSER expenditure. Questioned Cost Amount: The total of the error noted in testing was approximately $450. The projected error is estimated to be approximately $7,900. Perspective Information: One item out of 25 tested. Context: Budget reports submitted to and approved by the Virginia Department of Education (VDOE) include details explaining how Winchester Public Schools will spend ESSER funds. The elementary school position was not included in this report and, thus, not approved by the VDOE. Recommendation: We recommend continued review of payroll costs and positions before using ESSER funds . Views of Responsible Officials and Planned Corrective Action: The Director of Finance of Winchester Public Schools concurred with the finding and made the appropriate entries to remove these payroll costs out of the grant. The School ' s finance department will continue to have heightened scrutiny when using Federal funds. If the Federal Audit Clearinghouse has que stions regarding this plan, please call Holly V. McDonald, Director of Finance , at 540-667-4253. Sincerely, Holly V. McDonald, CPA Director of Finance