Finding 2023-003 - Corrective Action Plan
CHSD - 2022-2023 Audit Findings
Finding 2023-003 – ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COST/COST
PRINCIPLES
Type: Significant Deficiency in Internal Control
Program: COVID 19 Education Stabilization Fund (ALN 84.425D– ESSER II Formula, and ALN 84.425U –
ESSER III Formula)
Condition: Expenditures charged to the grant were not authorized by the grant.
Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the
allowable direct and allocable indirect costs less any applicable credits”.
Cause: Management’s misunderstanding of costs allowed under this grant.
Effect: Unallowed costs
Corrective action to be taken:
1. District enlisted the services of an outside consultant to work with the Finance Director to
address the training, knowledge, and experience (TKE) shortfalls in his skill set. The scope of
work was specified to include addressing the grant funding processes, proper public school audit
practices, and the proper methods for grant application, grant budgeting, budget implementation,
amending budgetary elements as permissible, and reconciling grant funding.
2. The Finance Director will effectively apply the provided TKE skills to CHSD Grant Funding
processes to ensure compliance with the budgetary guidelines and constraints of each grant
funding opportunity awarded to the CHSD.
3. In the event a need or opportunity arises, whereby a requested transaction exceeds a budgetary
constraint of an approved grant budget, the Finance Director will ensure a Grant Budget
Amendment or variance request is reviewed and approved by the issuing Agency/Department
prior to authorizing or posting the transaction which would create the budget variance.
The corrective action timeline is as follows:
The corrective action is effective immediately and applicable to all stakeholders with data entry access
to the CHSD financial accounting software platform.
District Leader Responsible for Corrective Action Plan:
The Finance Director will be responsible for ensuring compliance with this corrective action.
Respectfully submitted,
Marc Forrest, Director of Finance