FAC Explorer

Finding 3870 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2023-12-11
Audit: 6108
Organization: Metcalfe County School District (KY)
Auditor: Montgomery & Company P LLC

AI Summary

  • Core Issue: The district did not follow the rules for allowable costs under the Emergency Relief Program, leading to questioned expenditures.
  • Impacted Requirements: Federal grant funds must only be used for approved costs; two out of 14 tested expenditures were unallowable.
  • Recommended Follow-Up: Review and adjust financial practices to ensure compliance with grant requirements and address the $36,875 in questioned costs.

Finding Text

Elementary and Secondary Schools Emergency Relief Program – Assistance Listing No. 84.425; Grant Pass Through No. 4300002; Grant period: Year ended June 30, 2023, Criteria and condition: Expenditures are required to follow the allowable costs related to the grant. The district did not comply with this requirement. Context: A test of 14 non-payroll expenditures out of a population of 70 revealed that there were two instances where the expenditure of federal grant funds were unallowable under the grant’s allowable costs. Specifically the district expended $20,600 to pay the 2021-2022 audit fees for the district and expended $16,275 for errors and omission insurance. Therefore there is a total of $36,875 of questioned costs associated with this program.

Corrective Action Plan

We have implemented procedures to strengthen controls over allowable costs associated with federal grants whereby any non-standard expenses require a secondary review of allowability prior to being charged to a federal grant.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 3869 2023-001
    Material Weakness
  • 580311 2023-001
    Material Weakness
  • 580312 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $3.66M
84.010 Title I Grants to Local Educational Agencies $1.16M
10.555 National School Lunch Program $988,482
10.553 School Breakfast Program $478,621
84.287 Twenty-First Century Community Learning Centers $361,557
84.371 Striving Readers $185,589
93.575 Child Care and Development Block Grant $125,151
10.558 Child and Adult Care Food Program $94,831
10.565 Commodity Supplemental Food Program $88,329
84.358 Rural Education $37,247
84.048 Career and Technical Education -- Basic Grants to States $26,692
84.173 Special Education_preschool Grants $25,385
16.710 Public Safety Partnership and Community Policing Grants $20,170
10.559 Summer Food Service Program for Children $17,522
10.649 Pandemic Ebt Administrative Costs $6,145
84.027 Special Education_grants to States $5,303
10.560 State Administrative Expenses for Child Nutrition $1,863
84.424 Student Support and Academic Enrichment Program $360
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $300