Finding 370545 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-26
Audit: 292223
Organization: Fleetwood Area School District (PA)

AI Summary

  • Core Issue: The District submitted an ESSER Funding Status Report with incorrect expenditure data for the 2021-2022 school year.
  • Impacted Requirements: The U.S. Department of Education mandates accurate annual reporting of ESSER fund usage by local education entities.
  • Recommended Follow-Up: The District should enhance its process for financial data verification, involving the business office to ensure accuracy before report submission.

Finding Text

Federal Program U.S. Department of Education - passed through Pennsylvania Department of Education ALN 84.425D - COVID-19 - Elementary Secondary School Emergency Relief Fund, contract #200-21-0147 ALN 84.425U - COVID-19 - American Rescue Plan Elementary & Secondary School Emergency Relief, contract #223-21-0147 and #225-21-0147 Criteria The U.S. Department of Education (“USDE”) requires all local education entities receiving Elementary and Secondary School Emergency Relief (“ESSER”) funds to report on the use of the funds annually. The District was required to submit the ESSER Funding Status Report for the 2021-2022 school year to the Pennsylvania Department of Education (“PDE”). Condition The District completed and submitted the report to PDE, however, there was incorrect data for the amounts expended included in the report. Cause The process for completion and review of the financial information reported did not include verification of the expenditures to the information in the general ledger and what was reported on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. Effect Incorrect financial information included in the 2021-2022 report received by PDE who subsequently submitted the information to USDE. Questioned Costs None. Context Total expenditures reported under ESSER II were $949,657 while actual expenditures were $988,564. Additionally, no expenditures were reported under ARP ESSER reserve awards and ARP ESSER mandatory subgrants while actual expenditures were $89,016 and $324,872, respectively. Repeat Finding No. Recommendation We recommend the District review their process for obtaining the financial information included in the annual ESSER Funding Status Report and to have involvement from the business office for the review and approval of the financial information being reported before submission. General ledger reports from the financial software should be utilized with totals agreeing to what is reported on the Schedule of Expenditures of Federal Awards. Management Response See corrective action plan included in this report package.

Corrective Action Plan

Federal Program U.S. Department of Education - passed through Pennsylvania Department of Education ALN 84.425D - COVID-19 - Elementary Secondary School Emergency Relief Fund, contract #200-21-0147 ALN 84.425U - COVID-19 - American Rescue Plan Elementary & Secondary School Emergency Relief, contract #223-21-0147 and #225-21-0147 Criteria The U.S. Department of Education (“USDE”) requires all local education entities receiving Elementary and Secondary School Emergency Relief (“ESSER”) funds to report on the use of the funds annually. The District was required to submit the ESSER Funding Status Report for the 2021-2022 school year to the Pennsylvania Department of Education (“PDE”). Condition The District completed and submitted the report to PDE, however, there was incorrect data for the amounts expended included in the report. Cause The process for completion and review of the financial information reported did not included verification of the expenditures to the information in the general ledger and what was reported on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. Effect Incorrect financial information included in the 2021-2022 report received by PDE who subsequently submitted the information to USDE. Questioned Costs None. Context Total expenditures reported under ESSER II were $949,657 while actual expenditures were $988,564. Additionally, no expenditures were reported under ARP ESSER reserve awards and ARP ESSER mandatory subgrants while actual expenditures were $89,016 and $324,872, respectively. Repeat Finding No. Recommendation We recommend the District review their process for obtaining the financial information included in the annual ESSER Funding Status Report and to have involvement from the business office for the review and approval of the financial information being reported before submission. General ledger reports from the financial software should be utilized with totals agreeing to what is reported on the Schedule of Expenditures of Federal Awards Management Response The corrections have been made to the 2021-2022 report and submitted to PDE. New procedures have been implemented as follows: The Director of Curriculum and Instruction will prepare the report for submission to PDE in accordance with the required timeline and processes. Prior to submission for PIMS upload, the Director of Curriculum and Instruction will review the report with the Business Manager to ensure that all financial data is accurately represented. The Business Manager will compare the financial elements of the report to the general ledger and provide supporting documentation for the amounts contained in the report. Once the information has been verified, the Director of Curriculum and Instruction will forward the information to the PIMS Data Technician. The file will then be uploaded to the system, and the ACS will be signed by the Director of Curriculum and Instruction as the preparer, the PIMS Data Technician as the PIMS certifier, the Business Manager as the data reviewer, and finally, the Superintendent of Schools for final validation. Review of the report by these individuals will prevent this issue from occurring again. Anticipated Completion Date The corrective action plan has been fully implemented as of the report date. Sincerely, Heidi Orth Business Manager

Categories

Reporting

Other Findings in this Audit

  • 370546 2023-001
    Significant Deficiency
  • 370547 2023-001
    Significant Deficiency
  • 946987 2023-001
    Significant Deficiency
  • 946988 2023-001
    Significant Deficiency
  • 946989 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $361,924
10.553 School Breakfast Program $139,724
84.425 Education Stabilization Fund $109,300
10.555 National School Lunch Program $90,049
84.367 Supporting Effective Instruction State Grant $60,869
84.027 Special Education_grants to States $49,874
84.424 Student Support and Academic Enrichment Program $28,815
97.036 Covid-19 - Public Assistance Grants $16,938
84.365 English Language Acquisition State Grants $13,955
84.173 Special Education_preschool Grants $10,640
10.649 Pandemic Ebt Administrative Costs $628