Finding 42508 (2022-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-05-23

AI Summary

  • Core Issue: Assabet Valley RTHS improperly charged costs to the Education Stabilization Fund, violating compliance requirements.
  • Impacted Requirements: Expenditures must align with Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles).
  • Recommended Follow-Up: Implement stronger controls to ensure all costs charged to grants are allowable and compliant.

Finding Text

Department of Education Significant Deficiency in Internal Control over Compliance of the Major Program Finding 2022-001 ? Education Stabilization Fund ? 84.425D & 84.425U Condition: During our test of controls over compliance it was noted that a journal entry posted to the major program moved expenditures that were not included as part of the original application. Criteria: Costs charged to the major program should meet the requirements as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Context: During our review of journal entries posted to the major program it was noted that one of the journal entries was to allocate guidance counselors payroll for an unspecified time period to the Instructional/Proff Staff expense line of the major program. Effect: Assabet Valley RTHS was not in compliance with the allowable costs/ cost principals requirement as set forth by the Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Questioned Costs: Questioned costs of $5,252.88 Cause: Grant should have been amended Identification as a Repeat Finding: 2021-002 Recommendation: We recommend the Assabet Valley RTHS follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Managements Response: The District agrees with the recommendation and will work on setting up more controls.

Corrective Action Plan

March 6, 2023 The Assabet Valley Regional Technical High School respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Robert E. Brown II, CPA Certified Public Accountants 25 Cemetery Street P.O. Box 230 Mendon, Massachusetts 01756 Audit period: The finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule of expenditures of federal awards. Department of Education Significant Deficiency in Internal Control over Compliance of the Major Programs Finding 2022-001 ? Education Stabilization Fund ? 84.425D & 84.425U Condition: During our test of controls over compliance it was noted that a journal entry posted to the major program moved expenditures that were not included as part of the original application. Criteria: Costs charged to the major programs should meet the requirements as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Context: During review of journal entries posted to the major program it was noted that one of the journal entries was to allocate guidance counselors payroll for an unspecified time period to the Instructional/Proff Staff expense line of the major program. Effect: Assabet Valley RTHS was not in compliance with the allowable costs/ cost principals requirement as set forth by the Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Questioned Costs: Questioned costs of $5,252.88 Cause: Grant should have been amended Identification as a Repeat Finding: 2021-002 Recommendation: We recommend the Assabet Valley RTHS follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Responsible for Corrective Plan: Maria Silva, Director of Business Operations Estimated Completion Date: 6/30//2023 Action Taken: The District agrees with the recommendation and will work on setting up more controls

Categories

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 618950 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $190,944
84.425 Education Stabilization Fund $156,903
84.010 Title I Grants to Local Educational Agencies $152,744
84.268 Federal Direct Student Loans $99,518
84.027 Special Education_grants to States $64,526
84.063 Federal Pell Grant Program $57,658
10.555 National School Lunch Program $54,221
84.367 Improving Teacher Quality State Grants $28,610
84.424 Student Support and Academic Enrichment Program $9,883
84.048 Career and Technical Education -- Basic Grants to States $5,116