Finding Text
2023-001 – Activities Allowed and Allowable Costs
Federal Program Information:
Department of Education -
ALN: - 84.425D/84.425U - Education Stabilization Fund Under the
Coronavirus Aid, Relief and Economic Security Act/ARP ESSER
Criteria: The following CFR applies to this finding: 2 CFR 200.303
Condition: During audit procedures, it was identified that the Union does not have
consistently applied internal controls over program expenditures.
Cause: The Union does not have the necessary internal controls over compliance.
Effect: Insufficient controls could result in unallowable expenses being charged to the
program and subsequently improperly reimbursed by federal funds.
Identification of Questioned Costs: None identified.
Context: There were 41 cash disbursements and 59 payroll charges tested. It was
found that 11 of the disbursements tested did not have purchase orders, 7 had
purchase orders dated after the invoice and 1 did not have an invoice. Additionally, 5
employee contracts were not signed. This is not a statistically valid sample.
Repeat Finding: This is not a repeat finding.
Recommendation: It is recommended that the Union implements internal control
processes and procedures to ensure that they are following the criteria above.
Views of Responsible Officials and Corrective Action Plan: Client agrees with finding
and the unabridged version of their response can be found in the Corrective Action
Plan. Please see the Corrective Action Plan issued by the Essex North Supervisory
Union.