Finding 411335 (2022-002)

-
Requirement
H
Questioned Costs
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Year
2022
Accepted
2023-01-10

AI Summary

  • Core Issue: The District charged expenses to the federal grant before the official sub-grant award period, leading to non-compliance.
  • Impacted Requirements: Expenditures must only include allowable costs incurred during the approved budget period as per OMB Compliance Supplement.
  • Recommended Follow-Up: Ensure written confirmation of any changes to sub-grant periods before using funds to prevent future compliance issues.

Finding Text

2022-002: U.S. Department of the TreasuryCoronavirus Relief Fund (CRF)COVID-19 ? Supplemental Coronavirus Relief Funding for School Districts,CFDA 21.019Period of Performance - NoncomplianceGrant AwardNumber:21-340-07000 passed through the State of Nevada Department of Education.Criteria: The OMB Compliance Supplement requires that charges to federal awardsconsist of only allowable costs incurred during the approved budget period of afederal award?s period of performance and any costs incurred before the federalawarding agency or pass-through entity made the federal award that wereauthorized by the federal awarding agency or pass-through entity (2 CFRsections 200.308 and 200.309.Condition, Cause,and Effect/Potential Effect:While the District?s expenditures for the program are consistent with the March1, 2020 through December 31, 2021 Period of Performance for this federalprogram, the expenditures charged occurred prior to the date of sub-grant awardprovided by the State of Nevada Department of Education. The subgrant awardstates that the Period of Performance for the Sub-grant award would beDecember 10, 2021 ? December 31, 2021, and was signed by the pass-throughentity on December 21, 2021. Prior to acceptance, the District informed thepass-through entity that they intended to use the funds as reimbursement forcosts incurred during July through October of 2021, and pass-through entitypersonnel verbally assured District management that this would be acceptable.However, the pass-through entity did not amend the sub-grant period ofperformance, resulting in non-compliance with the sub-grant award.Questioned Costs: None noted.Context: Based on a nonstatistical sample of all costs charged to the program, it wasfound that all costs were incurred prior to the sub-grant award period. This wasan isolated instance resulting from a unique situation that arose and was out ofthe District?s control, and is not the result of a systematic problem.Repeat Findingfrom Prior Year: NoRecommendation: We recommend that the District obtain written documentation of any promisedrevisions to sub-grant awards prior to expending funds from the pass-throughentity in the future.Views ofResponsibleOfficials:Management agrees with this finding, however, since this was an un-correctedadministrative error on the part of the pass-through entity, and not due to actionsof District management, we were not able to avoid spending outside the narrowsub-grant?s period of performance.

Corrective Action Plan

AUDIT FINDING REFERENCE: 2022-002FINDING SUMMARY:The District?s expenditures charged to grant award number 21-340-07000 occurred prior to the date of the sub-grantaward provided by the State of Nevada Department of Education.RESPONSIBLE PERSON:Dr. David Jensen, SuperintendentPLANNED CORRECTIVE ACTION:This finding was in relation to a pass-through grant of Supplemental Corona Virus Relief Funding provided to theDistrict in lieu of an error found in the PCFP funding formula for the bi-ennium. While the District?s expenditures forthe program are consistent with the March 1, 2020 through December 31, 2021 Period of Performance for thisfederal funding, the Period of Performance on the sub-grant Award was listed as December 10 through December 31,2021. Prior to acceptance, the District informed the pass-through entity that the funds would be used to reimbursecosts incurred during July through October, 2021, and the pass-through entity personnel verbally assured Districtmanagement that this would be acceptable. However, the pass-through entity did not amend the sub-grant awardperiod of performance, resulting in non-compliance with the sub-grant award.Humboldt County School District agrees with the audit finding that this was an isolated instance resulting from aunique situation that arose and was out of the District?s control, and is not the result of a systematic problem.However, the District will follow the recommendation and make every effort to obtain written documentation of anypromised revisions to sub-grant awards prior to expending funds from the pass-through entity in the future.ANTICIPATED COMPLETION DATE:January 31, 2023

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Period of Performance

Other Findings in this Audit

  • 411325 2022-001
    Significant Deficiency
  • 411326 2022-001
    Significant Deficiency
  • 411327 2022-001
    Significant Deficiency
  • 411328 2022-001
    Significant Deficiency
  • 411329 2022-001
    Significant Deficiency
  • 411330 2022-001
    Significant Deficiency
  • 411331 2022-001
    Significant Deficiency
  • 411332 2022-001
    Significant Deficiency
  • 411333 2022-001
    Significant Deficiency
  • 411334 2022-001
    Significant Deficiency
  • 411336 2022-001
    Significant Deficiency
  • 987767 2022-001
    Significant Deficiency
  • 987768 2022-001
    Significant Deficiency
  • 987769 2022-001
    Significant Deficiency
  • 987770 2022-001
    Significant Deficiency
  • 987771 2022-001
    Significant Deficiency
  • 987772 2022-001
    Significant Deficiency
  • 987773 2022-001
    Significant Deficiency
  • 987774 2022-001
    Significant Deficiency
  • 987775 2022-001
    Significant Deficiency
  • 987776 2022-001
    Significant Deficiency
  • 987777 2022-002
    -
  • 987778 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $949,791
84.041 Impact Aid $508,555
10.553 School Breakfast Program $225,543
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $215,405
32.009 Emergency Connectivity Fund Program $143,909
10.665 Schools and Roads - Grants to States $82,066
84.287 Twenty-First Century Community Learning Centers $73,217
10.555 National School Lunch Program $64,600
84.424 Student Support and Academic Enrichment Program $61,050
84.425 Education Stabilization Fund $51,848
84.048 Career and Technical Education -- Basic Grants to States $47,935
84.299 Indian Education -- Special Programs for Indian Children $38,084
10.582 Fresh Fruit and Vegetable Program $29,464
10.579 Child Nutrition Discretionary Grants Limited Availability $27,367
84.011 Migrant Education_state Grant Program $20,723
84.060 Indian Education_grants to Local Educational Agencies $18,679
84.184 Safe and Drug-Free Schools and Communities_national Programs $17,858
10.559 Summer Food Service Program for Children $16,437
84.173 Special Education_preschool Grants $7,633
84.367 Improving Teacher Quality State Grants $6,250
84.365 English Language Acquisition State Grants $3,339
84.027 Special Education_grants to States $1,186
84.010 Title I Grants to Local Educational Agencies $60