Finding Text
MATERIAL WEAKNESSCompliance ? Allowable Costs/Cost PrinciplesCriteria: The Emergency Connectivity Fund (ECF) does not permit applicants to receive duplicative support for equipment or services that have already been reimbursed through other federal or State programs.Condition: During the year ended June 30, 2022, the Board received funding from the Emergency Connectivity Fund totaling $2,233,262 for reimbursement of equipment purchases. $893,123 of these purchases had been paid from the General Fund using local funds. $1,340,139 of these purchases had been paid from the State Public School Fund using Low Wealth (PRC 031) funds.Effect: $1,340,139 of ECF funds received were for duplicative support that had already been reimbursed by the State Public School Fund from Low Wealth funds.Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to.Questioned costs: $1,340,139. This amount is reported as unearned revenue in Exhibit 3 of the Board?s June 30, 2022 financial statements.Identification of a repeat finding: This is not a repeat finding from the immediate previous audit.Recommendation: We recommend that controls be put in place to ensure that management fully understands all program requirements pertaining to grant funding received by the district to ensure that available grant funding is maximized for the benefit of the district.Views of responsible officials and planned corrective actions:The Board of Education agrees with this finding and will implement controls to ensure that management fully understands all program requirements pertaining to grant funding received by the district to ensure that available grant funding is maximized for the benefit of the district.