Federal Program
Education Stabilization Fund - Passed through the Pennsylvania Department of Education
COVID-19 - Governor's Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22
COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-
21-0141; Grant Period 03/13/20 - 09/30/23
COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24
COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24
Criteria
In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source.
Condition
The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants.
Cause
The District did not have the review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants.
Effect
Unallowable costs were charged to the grants.
Questioned Costs
ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141- $44,757 ALN 84.425U; Contract #225-21-0141 - $250
Context
Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants.
Repeat Finding
No.
Recommendation
We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures.
Management Response
Exeter Township School District had turnover in their business office including the Assistant Business Manager, Payroll Clerk, and Accountant positions during FY22 and first part of FY23. All of these positions have been replaced with new hires and training has been provided to all, as well as creating backups for all of these positions. The new assistant Business Manager is undergoing training in grant management, allowable costs, funding streams and report preparation. The Business Administrator will review all cost reports including detailed backup before the report is submitted to make sure only allowable costs are submitted. Exeter Township has additional allowable expenditures that can be charged to the grants to replace the unallowed costs. These expenditures were within the grant period and can be reclassified for contracts: 252-20-0141 and 200-21-0141. For contracts 223-21-0141 and 225-21-0141 the grant period is still in process and the unallowed costs will be replaced with allowed costs.