Finding Text
2023-001 Improve Oversight of Period of Performance Over Federal Awards (Material Weakness)
Federal Agency: Department of Education
Cluster/Program: Special Education Cluster
AL Number(s): 84.027/84.173
Award Year: 2023
Compliance Requirement: Period of Performance
Type of Finding
Compliance
Internal Control over Compliance - Material Weakness
Criteria or Specific Requirement
The City may only incur allowable costs during the authorized period of performance of the grant.
Condition and Context
During our testing of costs charged to the Special Education Cluster, we found several invoices for costs that occurred prior to the start of the City’s fiscal year 2023 IDEA special education grant. Since these costs occurred outside of the grant’s authorized period of performance, they are not eligible to be charged to that grant.
Cause
The City has not established adequate procedures to ensure costs charged to the grant were within the authorized period of performance.
Effect or Potential Effect
Due to the weakness in internal control noted above, there are known and questioned costs reported related tuition expenses incurred prior to the period of performance and charged to the grant.
Questioned Costs
Known questioned costs reported are $225,863.
Recommendation
The City should put controls in place to ensure that no costs are incurred for a grant prior to the authorized period of performance.
Views of Responsible Official
Management agrees with the finding.