Finding 370652 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-02-27

AI Summary

  • Core Issue: Federal programs were charged for benefits that were already reimbursed by a state subsidy, leading to potential funding duplication.
  • Impacted Requirements: Compliance with Title 2 CFR Section 200.431(c) regarding proper allocation of fringe benefits to federal awards.
  • Recommended Follow-Up: Ensure PSERS contributions charged to federal awards are adjusted for state reimbursements to avoid questioned costs.

Finding Text

COVID-19 Education Stabilization Fund - Assistance Listing 84.425D and 84.425U passed through the Pennsylvania Department of Education; Title I - Grants to Local Educational Agencies - Assistance Listing 84.010 passed through the Pennsylvania Department of Education; Grant Period - Year Ended June 30, 2023. Criteria: In accordance with Title 2 CFR Section 200.431(c) of the Uniform Guidance, fringe benefits must be allocated to federal awards and all other activities in a manner consistent with the pattern of benefits attributable to the employees whose salaries and wages are chargeable to such federal awards and other activities. Condition: Benefits charged to federal programs included Public School Employees’ Retirement System (PSERS) employer contribution expenditures that were reimbursed by a state subsidy. Cause: The system generated payroll report that identifies federally funded staff did not properly reduce federal allocations for amounts reimbursed by the state subsidy. Effect: Failure to properly deduct the PSERS reimbursement portion allocated to federal awards is a duplication of benefits which can result in a loss of funding. Questioned Costs: Total known questioned costs of $72,697 as indicated below: • COVID-19 Education Stabilization Fund - Assistance Listing 84.425D - $8,294 • COVID-19 Education Stabilization Fund - Assistance Listing 84.425U - $34,485 • Title I - Grants to Local Educational Agencies - Assistance Listing 84.010 - $29,918 Perspective Information: Total PSERS employer contribution expenditures charged to these federal awards were $144,098. The state subsidy reimbursed the District for approximately 50 percent of these expenditures for a total of $72,697. Identification of Repeat Findings: Not applicable. Recommendation: The District should ensure that PSERS employer contribution expenditures charged to federal awards are reduced for amounts reimbursed by other funding sources. Views of Responsible Officials: Management agrees with the finding. Planned Corrective Action: See District’s corrective action plan.

Corrective Action Plan

The Staff Accountant, Kyle Winton, will ensure that the PSERS reimbursements are properly deducted from federal grant allocations by reconciling with the quarterly Act 29 Reimbursement report that identifies federally funded staff through the CSIU payroll module. The appropriate aide ratio from the Act 29 Employer Salary Report will be used to calculate the correct retirement amount based on the employees’ work history.

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 370653 2023-001
    Significant Deficiency
  • 370654 2023-001
    Significant Deficiency
  • 370655 2023-001
    Significant Deficiency
  • 947094 2023-001
    Significant Deficiency
  • 947095 2023-001
    Significant Deficiency
  • 947096 2023-001
    Significant Deficiency
  • 947097 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $256,116
10.553 School Breakfast Program $179,975
10.555 National School Lunch Program $126,057
84.425 Education Stabilization Fund $79,684
84.027 Special Education_grants to States $65,830
84.367 Improving Teacher Quality State Grants $46,935
84.424 Student Support and Academic Enrichment Program $22,000
84.041 Impact Aid $8,193
84.173 Special Education_preschool Grants $2,926
93.778 Medical Assistance Program $1,347
10.649 Pandemic Ebt Administrative Costs $628