Finding Text
Finding 2023-001
Material Instance of Non-Compliance
Annual Performance Report
This finding impacts the reporting compliance requirement for the major program, Assistance Listing Number 84.425D/U, COVID-19 - Education Stabilization Fund, funded by the Department of Education (DESE).
Criteria: The Organization must follow the monitoring and reporting program performance requirements set out in the OMB 2 CFR Section 200.239. The Organization must submit an annual performance report (OMB. No. 1810-0749) for the Elementary and Secondary School Emergency Relief (ESSER) funding with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory/reservations. The expenditures disclosed on the report must match the expenditures stated in the Schedule of Expenditures of Federal Awards (SEFA).
Condition: During our compliance testing, we reviewed the ESSER annual performance reports submitted by the Organization. The total ESSER expenditures reported within the annual performance report did not agree back to the ESSER expenditures recorded on the SEFA for the year ended June 30, 2022, by approximately $435,000.
Cause: The Organization did not properly include all ESSER expenditures for the year ended June 30, 2022, within the annual performance report. This was an isolated instance due to the new reporting requirements and turnover within the fiscal department over recent years.
Effect: Incorrect expenditure reported on the annual performance report for the year ended June 30, 2022, by approximately $435,000. This non-compliance with the Uniform Guidance requirement could potentially impact future Federal funding.
Was the finding a repeat of a finding in the immediately prior year?: No
Recommendation: AAFCPAs recommends that management follows its internal controls as intended to ensure the annual performance reports agrees back to the SEFA for applicable reporting periods.
Management’s Response: During the audit, it was discovered that the fiscal year 2022 ESSER Data Collection Report was filed with information that did not match the fiscal year 2022 SEFA. Management acknowledges this and has taken measures to ensure that all Federal reports will be filed in compliance with and in agreement to SEFA hereto.