Finding 375690 (2023-002)

Major Federal Award Programs Findings and Questioned Costs Material weakness 2023-002 Review and approval of claims (related to Education Stabilization Fund - COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Fund 84.425D and COVID-19 American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund 84.425U) Criteria Management should review and approve claims to determine they represent allowable costs, as defined in the OMB Compliance Supplement, prior to submitting for reimbursement. Condition During the year ended June 30, 2023, management did not review and approve claims to determine they represent allowable costs, as defined in the OMB Compliance Supplement, prior to submitting for reimbursement. Cause and effect Management did not review and approve claims to determine they represent allowable costs, as defined in the OMB Compliance Supplement, prior to submitting for reimbursement which could have resulted in claim submissions for unallowable costs. Recommendation We recommend that management review and approve claims to determine they represent allowable costs, as defined in the OMB Compliance Supplement, prior to submitting for reimbursement. The review and approval should be performed by someone independent of the person who is submitting the claims. Views of responsible officials and planned corrective actions Management notes the recommendation. Moving forward, the Director of HR, Finance, and Operations will enter claims into Oracle, in accordance with the CPS plan, and the accountant will review the claims and post to the accounting system. Finance committee meetings go over invoicing of claims and keep track based on budgeted numbers. Variances are discussed and documented in these meetings.