Finding Text
Federal Agency: Department of Education
Cluster/Program: Special Education Cluster
AL Number(s): 84.027
Award Year: 2023
Compliance Requirement: Period of Performance
Type of Finding
Compliance
Internal Control over Compliance – Material Weakness
Criteria or Specific Requirement
A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Management of the School District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal pro¬gram. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of per¬forming their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
Condition and Context
There were several invoices for costs that occurred prior to the start of the School District’s fiscal year 2023 IDEA special education grant. Since these costs occurred outside of the authorized period of performance, they are not eligible to be charged to that grant.
Cause
The School District has not established adequate procedures to ensure costs charged to the grant are 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 to salaries and contracted services incurred prior to the period of performance and charged to the grant.
Questioned Costs
Known questioned costs reported are $49,883.
Recommendation
The School District should implement controls 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.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.