Finding Text
2022-002. Allowable Costs/Cost Principles United States Department of Education, passed through New York State Department of Education Title I Grants to Local Educational Agencies ALN: 84.010 Special Education Cluster Special Education Grants to States ALN: 84.027A Special Education Preschool Grants ALN: 84.173A Criteria: 2 CFR ?200.400 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have adequate documentation to support costs charged to federal awards. In consideration of this, the District is required to make purchases using federal funds that comply with program guidelines established by federal and state agencies, and all purchases made using federal funds should be reviewed and approved by an administrator familiar with those program guidelines. Condition: Based on our sample testing of the expenditures charged to the Special Education Cluster and the Title I Grants to Local Educational Agencies, we noted that some expenditures did not show evidence of a grant administrator?s review and approval. Cause: The District did not have a consistent process in place to ensure that all expenditures charged to the federal programs were reviewed and approved by the appropriate administrator prior to payment. Effect: This could result in the District potentially submitting unallowable expenditures for reimbursement. Questioned Costs: None reported. Context: Total population size of purchase expenditures for the Special Education Cluster was 63. The audit sample size was 10% of the population, which totaled 6 samples that were haphazardly selected for audit testing. The finding was identified in 2 of the 6 samples selected. Total population size of purchase expenditures for the Title I grants to Local Educational Agencies was 11. Audit sample size was 10% of the population, which totaled 2 samples that were haphazardly selected for audit testing. The finding was identified in the 2 samples selected. Recommendation: The District should implement procedures whereby all expenditures charged to federal grant programs show documented evidence of review and approval for payment by the appropriate grant administrator responsible for the oversight of that grants. Views of Responsible Officials of Auditee: Management agrees with the finding. The District?s Assistant Superintendent for Business has begun implementing procedures to ensure all expenditures charged to federal programs show evidence of review and approval of an appropriate grant administrator responsible for the oversight of these grants.