FAC Explorer

Finding 43205 (2022-003)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-02-07
Audit: 41462
Organization: Jefferson County School District No R-1 (CO)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The District's SEFA was adjusted by $707,123 due to ineligible costs, with $138,673.08 specifically questioned as not allowable under federal guidelines.
  • Impacted Requirements: Compliance with 2 CFR 200.502 and the 2022 OMB Compliance Supplement is crucial for accurate reporting of federal awards and allowable costs.
  • Recommended Follow-up: The District should enhance its review process for tracking and reporting federal expenditures to prevent future inaccuracies.

Finding Text

Criteria or specific requirement: Per the 2 CFR 200.502, Basis for Determining Federal Awards Expended, the schedule of expenditures of federal awards (SEFA) for the period covered by the financial statements must be complete, accurate, and include the total federal awards expended. Per the 2022 OMB Compliance Supplement for ALN No. 32.009, Allowable costs must meet general criteria for allowability, including being necessary and reasonable for the performance of the Federal award, allocable thereto and adequately documented. Condition The amounts presented for the Emergency Connectivity Fund Program on the District?s SEFA were adjusted by $707,123. Of this amount, $138,673.08 was for ineligible cases submitted for reimbursement that are not allowable under the program. Questioned costs: $138,673.08. Context Federal award requires accurate and reliable documentation of allowable costs and SEFA reporting. Cause The District was unaware cases for laptops would be deemed ineligible. They believe the remaining amount rejected of $568,449 for warranties and licenses will get accepted during litigation but won?t have a resolution during 2022. Therefore, the SEFA was adjusted for the full amount of $707,123. Effect An adjustment of $707,123 was required to be made to the District?s SEFA and $138,673.08 of this amount was deemed ineligible for reimbursement. Repeat Finding: No Recommendation We recommend that the District improve the review process over tracking and reporting reimbursements of federal expenditures. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Emergency Connectivity Fund Program ? Assistance Listing No. 32.009 Recommendation: We recommend that the district improve the review process over tracking and reporting reimbursements of federal expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: As the subject matter experts, the district grants accounting department will work with other district departments to ensure eligibility rules and requirements are fully met when seeking reimbursement for expenditures. Grants team members will further work to support departments who play an active role in obtaining and monitoring federal grants to seek reimbursement within a timely manner, and when possible, seeking such reimbursement by the close of the fiscal year or immediately thereafter. Specific guidance will be communicated with other department management and future updates to the district Financial Services Guide will include updated guidance for all departments to reference. The Grants Manager will be responsible for monitoring all correspondence with grant-making entities to ensure timely response to potentially disputed submissions. Name(s) of the contact person(s) responsible for corrective action: Andy Flinn, Grants Manager Planned completion date for corrective action plan: June 2023

Categories

Questioned Costs Reporting Allowable Costs / Cost Principles

Other Findings in this Audit

  • 619647 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program June 30, 2022 $25.78M
84.027 Individuals with Disabilities Education Act-Part B/increasing Achievement $14.24M
84.010 Title I Grants to Local Education Agencies $11.31M
84.425 Covid-19 - Elementary and Secondary School Emergency Relief (esser Ii) $7.47M
84.425 Covid-19 - Elementary and Secondary School Emergency Relief (esser Iii) $6.94M
10.553 National School Breakfast Program June 30, 2022 $3.99M
32.009 Emergency Connectivity Fund Program $2.74M
93.575 Child Care Assistance Block Grant (child Care Stabilization) $2.65M
10.555 Donated Comodities: June 30, 2022 $1.92M
84.367 Title II - A - Teacher Quality $1.63M
84.287 Twenty-First Century Community Learning $623,188
84.424 Title IV-A - Student Support and Academic Enrichment $608,068
84.048 Vocational and Applied Technology Education-Basic State Grants $505,640
84.425 21st Cclc $415,623
84.365 Title III - English Language Learners $396,755
84.173 Individuals with Disabilities Education Act-Preschool Services $389,001
10.559 Summer Food Service Program for Children June 30, 2022 $365,349
84.002 Adult Education-State Administered Basic Grant Program $345,401
10.582 Fresh Fruit and Vegetable Program $178,796
93.323 Covid-19 - Epidemiology and Laboratory Capacity Covid 19 Testing $105,233
10.555 National Snak Program June 30, 2022 $101,328
84.425 Covid-19 - Elementary and Secondary School Emergency Relief (esser I) $79,800
93.788 Colorado State Opioid Response Grant $79,284
84.060 Title Vi - Indian Education-Formula Grants to Lea and Tribal Schools $78,811
93.558 Temporary Assistance for Needy Families (tanf) $54,456
10.579 National School Lunch Equipment Assistance $50,000
93.566 Refugee and Entrant Assistance State Programs $46,701
84.425 Covid-19 - Arp Esser III State Set-Aside Easi $43,452
10.649 Covid-19 Snap Cn Local P-Ebt Administrative Funds Grant $5,814
84.027 Covid-19 - Arp: Special Education: Grants to States Idea Part B $3,629
93.981 Improving Student Health and Academic Achievement $2,496
84.425 Covid-19 - Arp Homeless Children and Youth $128