Finding 479045 (2022-002)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2024-07-22
Audit: 315563
Organization: Exeter Township School District (PA)

AI Summary

  • Core Issue: The District charged over 100% of employer paid retirement costs to grants, violating funding guidelines.
  • Impacted Requirements: Only unreimbursed retirement costs (45%) should be charged to the grants, leading to $126,282 in unallowable costs.
  • Recommended Follow-Up: Establish a process to track funding sources and ensure only allowable costs are charged; implement independent reviews of cost reports.

Finding Text

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 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 See corrective action plan included in this report package.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 479036 2022-002
    Material Weakness
  • 479037 2022-003
    Significant Deficiency
  • 479038 2022-004
    Significant Deficiency
  • 479039 2022-002
    Material Weakness
  • 479040 2022-003
    Significant Deficiency
  • 479041 2022-004
    Significant Deficiency
  • 479042 2022-002
    Material Weakness
  • 479043 2022-003
    Significant Deficiency
  • 479044 2022-004
    Significant Deficiency
  • 479046 2022-003
    Significant Deficiency
  • 479047 2022-004
    Significant Deficiency
  • 479048 2022-003
    Significant Deficiency
  • 479049 2022-004
    Significant Deficiency
  • 479050 2022-003
    Significant Deficiency
  • 479051 2022-004
    Significant Deficiency
  • 479052 2022-003
    Significant Deficiency
  • 479053 2022-004
    Significant Deficiency
  • 1055478 2022-002
    Material Weakness
  • 1055479 2022-003
    Significant Deficiency
  • 1055480 2022-004
    Significant Deficiency
  • 1055481 2022-002
    Material Weakness
  • 1055482 2022-003
    Significant Deficiency
  • 1055483 2022-004
    Significant Deficiency
  • 1055484 2022-002
    Material Weakness
  • 1055485 2022-003
    Significant Deficiency
  • 1055486 2022-004
    Significant Deficiency
  • 1055487 2022-002
    Material Weakness
  • 1055488 2022-003
    Significant Deficiency
  • 1055489 2022-004
    Significant Deficiency
  • 1055490 2022-003
    Significant Deficiency
  • 1055491 2022-004
    Significant Deficiency
  • 1055492 2022-003
    Significant Deficiency
  • 1055493 2022-004
    Significant Deficiency
  • 1055494 2022-003
    Significant Deficiency
  • 1055495 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $1.74M
10.553 School Breakfast Program $514,289
84.010 Title I Grants to Local Educational Agencies $440,710
84.027 Special Education_grants to States $157,287
84.367 Supporting Effective Instruction State Grant $80,900
93.778 Medical Assistance Program $15,850
84.425 Education Stabilization Fund $11,678
84.173 Special Education_preschool Grants $6,981
10.649 Pandemic Ebt Administrative Costs $3,063
84.424 Student Support and Academic Enrichment Program $2,691
84.365 English Language Acquisition State Grants $2,338