Finding 479407 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2024-07-25

AI Summary

  • Core Issue: Payroll for an English Language Learning Teacher was improperly charged to the Education Stabilization ESSER II grant without being included in grant applications.
  • Impacted Requirements: This violates the allowable costs criteria outlined in Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles).
  • Recommended Follow-Up: The Town of Bellingham should implement procedures to ensure all expenditures are compliant with grant requirements and amendments are processed promptly.

Finding Text

Finding 2022-003 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Programs Condition: During our test of controls over compliance it was noted that payroll for an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant, however was not included as part of the original or amended grant applications. Criteria: Costs charged to the Education Stabilization ESSER II 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 payroll transactions posted to the Education Stabilization ESSER II major program it was noted that an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant and was not included as part of the original or amended grant applications. Effect: Town of Bellingham 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: Could not be determined. Cause: Amendments to the grant were not posted at the time of the change. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Bellingham 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: Management will ensure that all amendments are processed at the time of occurrence.

Corrective Action Plan

Finding 2022-003 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Programs Condition: During our test of controls over compliance it was noted that payroll for Nurses was posted to the Education Stabilization ESSER II major program grant, however an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant, however not included as part of the original or amended grant application. Criteria: Costs charged to the Education Stabilization ESSER II 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 payroll transactions posted to the Education Stabilization ESSER II major program it was noted that an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant and was not included as part of the original or amended grant application. Effect: Town of Bellingham 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: Could not be determined. Cause: Amendments to the grant were not posted at the time of change. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Bellingham 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: Director of Finance, Schools Estimated Completion Date: March 2024 Action Taken: Management will ensure that all amendments are processed at the time of the occurrence.

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 479408 2022-004
    -
  • 479409 2022-001
    Significant Deficiency
  • 479410 2022-002
    Material Weakness Repeat
  • 479411 2022-002
    Material Weakness Repeat
  • 1055849 2022-003
    Significant Deficiency
  • 1055850 2022-004
    -
  • 1055851 2022-001
    Significant Deficiency
  • 1055852 2022-002
    Material Weakness Repeat
  • 1055853 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $256,505
10.553 School Breakfast Program $218,680
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $212,518
21.027 Coronavirus State and Local Fiscal Recovery Funds $206,444
10.555 National School Lunch Program $46,491
84.027 Special Education_grants to States $43,513
84.010 Title I Grants to Local Educational Agencies $43,184
84.367 Improving Teacher Quality State Grants $34,910
84.173 Special Education_preschool Grants $8,447
21.019 Coronavirus Relief Fund $3,684
84.424 Student Support and Academic Enrichment Program $480
84.425 Education Stabilization Fund $450