Finding Number 2023-004 — Significant Deficiency in Internal Control/Non-Compliance — Covid
19-ESSER II - Approved Expenditures
Condition: During expense testing of ESSER funds, a final invoice for a sound system project in
Shepherd Middle School was not detailed in the approved grant application. The expenditure
was for $4,010 but the total cost of the project was $20,050. The bulk of the project cost, $16,040,
was expended during 2021-2022. The sound system was not an allowable cost based on not being
in the original grant application.
Responsible Person: Carl Seiter, Director of Business Services
Implementation Date: December 31, 2023
Corrective Action: Develop an approval process that requires the Director of Business Services
to review approved grant application prior to approving any federal grant expenditure. The
Director of Federal Programs and the Director of Business Services will meet monthly to review
federal grants, expenditures in the near future and discuss/review proper assignment of expenses
to the specific grants and general ledger function codes.
Sincerely,
Carl Seiter
Director of Business Services
Shepherd Public Schools