Finding 375714 (2023-013)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-03-12

AI Summary

  • Core Issue: The Organization failed to input their budget into the accounting system, leading to untracked grant expenditures.
  • Impacted Requirements: Proper budget creation and tracking are essential to minimize miscoding of expenses and ensure compliance with federal guidelines.
  • Recommended Follow-Up: Management should establish procedures for budgeting and expense tracking, and consider hiring a third-party firm for assistance.

Finding Text

Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-federal grant recipient should set reasonable budgets for programs to minimize incentives to miscode expenses. The recipient should compare budgeted and actual allowable costs and investigate variances where applicable. Condition: While the Organization created a budget for overall activities, they did not input the budget into their accounting system or create an outside tool to track actual grant expenditures with the budget. Cause: Controls to ensure budgets are created and utilized are not properly designed or operating effectively. Effect: The District did not identify grant expenditures until after year end. Questioned costs: None noted. Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund (Continued) Context: Testing was performed on a population size of 31. Based on our risk assessment we did tested the entire population rather than using statistical sampling. Based on our testing none of the 31 items were compared to the budget in the general ledger software. Recommendation: Management should implement procedures that include a creation of a budget for each grant award and track expenses against the budget. Additionally, we recommend that the District retain a third party firm to provide budgeting assistance. Views of responsible officials and planned corrective action: Management agrees with this finding and is working on implementing a budget to actual reporting process as staffing allows.

Corrective Action Plan

Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-federal grant recipient should set reasonable budgets for programs to minimize incentives to miscode expenses. The recipient should compare budgeted and actual allowable costs and investigate variances where applicable. Condition: While the Organization created a budget for overall activities, they did not input the budget into their accounting system or create an outside tool to track actual grant expenditures with the budget. Management Response and Planned Corrective Actions Criteria: Management agrees with this finding and is working on implementing a budget to actual reporting process as staffing allows. Responsibility for Corrective Action: Christina Vetromile, Business Manager Anticipated Completion Date: Unknown

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 375715 2023-014
    Material Weakness
  • 375716 2023-013
    Material Weakness Repeat
  • 375717 2023-014
    Material Weakness
  • 952156 2023-013
    Material Weakness Repeat
  • 952157 2023-014
    Material Weakness
  • 952158 2023-013
    Material Weakness Repeat
  • 952159 2023-014
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $190,880
84.041 Impact Aid $189,384
84.425 Education Stabilization Fund $150,560
10.553 School Breakfast Program $66,606
84.367 Improving Teacher Quality State Grants $34,995
10.559 Summer Food Service Program for Children $32,083
10.555 National School Lunch Program $31,065
84.424 Student Support and Academic Enrichment Program $12,972
45.310 Grants to States $3,456
10.649 Pandemic Ebt Administrative Costs $1,281