Finding 47953 (2022-001)

Reference # and title: 2022-001 Reporting Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Education Stabilization Funds (ESSER II and III) 84.425D and 84.425U 2021 Criteria or specific requirement: Louisiana Department of Education (LDOE) requires the School Board to complete periodic expense reports (PER) each quarter to ensure the amounts expended to date are being properly reported. Good internal controls over the reports require that they are reviewed and approved before submission to ensure amounts being submitted are complete and accurate. Condition found: In testing a sample of five PER reports, it was noted that two of the five reports did not agree to the School Board?s general ledger. In both cases, the amounts being reported to LDOE were understated. Context: This finding appears to be systemic. Possible asserted effect (cause effect): Cause: The auditor was unable to determine the cause. Effect: The School Board did not meet all compliance requirements related to reporting. Recommendations to prevent future occurrences: The School Board should establish monitoring procedures over the reports being submitted to the Louisiana Department of Education to ensure reports are complete and accurate. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2022. View of responsible official: The obligation period for Education Stabilization Fund (ESF) program awards is three years. In one award a prior period adjustment was made in 2020-2021 to claim expenditures paid in the previous fiscal year as ESF expenditures; these expenditures were not accumulated in totals reported on the Periodic Expense Report (PER). In another award, the total of prior year expenditures was not accurately carried forward in the total of program expenditures maintained in 2021-22 for the PER. The School Board will establish procedures to ensure an accurate total of program expenditures is being maintained and reported for the PER across all fiscal periods included in the grant award.