Finding 392109 (2023-002)

1. Final Expenditure Report Finding Number: 2023-002 Assistance Listing Number and Title: AL #84.425 COVID-19 – Education Stabilization Fund Federal Award Identification Number / Year: 2023 Federal Agency: Department of Education Compliance Requirement: Reporting Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 provides the Department of Education (DOE) adopts the Office of Management and Budget (OMB) Guidance in 2 CFR part 200, except for 2 CFR § 200.102(a) and 2 CFR § 200.207(a). Thus, this part gives regulatory effect to the OMB guidance and supplements the guidance as needed for the DOE. As documented by the Ohio Department of Education and Workforce Office of Federal and State Grants Management, the Ohio Department of Education and Workforce requires school districts to submit the American Rescue Plan Elementary and Secondary School Emergency Relief 2023 grant Final Expenditure Report (FER) by December 1, 2023. School Districts must complete the FER at the end of each fiscal year for the prior state fiscal year’s Elementary and Secondary School Emergency Relief expenditures. All expenses reported on the FER should be paid. There should be no encumbered amounts. The Treasurer and Superintendent approved and submitted the Final Expenditure Report for the American Rescue Plan Elementary and Secondary School Emergency Relief 2023 grant on September 26, 2023. However, the expenditures in this submission included the American Rescue Plan Elementary and Secondary School Emergency Relief 2022 grant expenditures as well as the 2023 grant. In an attempt to correct this, the Treasurer posted adjustments to the American Rescue Plan Elementary and Secondary School Emergency Relief Fund on November 28, 2023 totaling $50,798 and on January 23, 2024 totaling $242,907. However, the amounts adjusted by the Treasurer in November 2023 and January 2024 would not be considered federal expenditures until the time management made the decision to allocate those allowable costs to the program. As such, those adjusted expenditures could appear on the fiscal year 2024 Final Expenditure Report but not fiscal year 2023. Therefore, the American Rescue Plan Elementary and Secondary School Emergency Relief 2023 grant Final Expenditure Report submitted to the Ohio Department of Education and Workforce overstated object codes 100 by $174,529, 200 by $81,982, 400 by $29,536, and 500 by $7,689. The School District should review the Final Expenditure Report before submission to help ensure all required amounts are included.