Finding 485562 (2023-002)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-09-01
Audit: 318339
Organization: Southern Fulton School District (PA)

AI Summary

  • Core Issue: The District failed to file required quarterly and final expenditure reports on time for multiple grants.
  • Impacted Requirements: Reports were due within 10 days for quarterly filings and within 30 days for final expenditures, as mandated by the Pennsylvania Department of Education.
  • Recommended Follow-Up: Implement procedures to ensure timely filing of all required reports to avoid potential withholding of federal funds.

Finding Text

Finding 2023-002 – Cash Management and Reporting Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023 U.S. Department of Education Pass-Through Entity - Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement. The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405. Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: No Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan on pages 93-95.

Corrective Action Plan

The finding from Section III – Federal Awards Findings and Questioned Costs Finding 2023-002 – Cash Management and Reporting Condition: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires annual final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after the funds are expended but no later than 30 days after the ending of the date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Views of Responsible Officials and Planned Corrective Actions: The District Business Manager will work directly with the District Superintendent and the Federal Programs Coordinator, as well as any additional parties involved in the process of the Federal Grants filing the expenditure reports quarterly and filing of the final expenditure reports. Procedures will include creating reminders on the Business Manager’s calendars that include the due dates each quarter, reporting the appropriate expenditures in the accounting software, and creating a separate report listing the expenditures for that quarter and the remaining funds for future quarters. Account numbers that accurately reflect and represent the expenditures for related funding sources will be created and reviewed for necessary changes as the projects progress.

Categories

Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 485563 2023-003
    Significant Deficiency
  • 485564 2023-004
    Significant Deficiency
  • 485565 2023-002
    Significant Deficiency
  • 485566 2023-003
    Significant Deficiency
  • 485567 2023-004
    Significant Deficiency
  • 485568 2023-002
    Significant Deficiency
  • 485569 2023-003
    Significant Deficiency
  • 485570 2023-004
    Significant Deficiency
  • 485571 2023-002
    Significant Deficiency
  • 485572 2023-003
    Significant Deficiency
  • 485573 2023-004
    Significant Deficiency
  • 1062004 2023-002
    Significant Deficiency
  • 1062005 2023-003
    Significant Deficiency
  • 1062006 2023-004
    Significant Deficiency
  • 1062007 2023-002
    Significant Deficiency
  • 1062008 2023-003
    Significant Deficiency
  • 1062009 2023-004
    Significant Deficiency
  • 1062010 2023-002
    Significant Deficiency
  • 1062011 2023-003
    Significant Deficiency
  • 1062012 2023-004
    Significant Deficiency
  • 1062013 2023-002
    Significant Deficiency
  • 1062014 2023-003
    Significant Deficiency
  • 1062015 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
32.009 Emergency Connectivity Fund Program $1.56M
84.010 Title I Grants to Local Educational Agencies $209,884
84.027 Special Education_grants to States $128,581
10.553 School Breakfast Program $93,175
10.555 National School Lunch Program $29,188
84.367 Improving Teacher Quality State Grants $28,515
84.424 Student Support and Academic Enrichment Program $16,695
84.173 Special Education_preschool Grants $2,188
93.778 Medical Assistance Program $1,558
84.425 Education Stabilization Fund $1,263
10.649 Pandemic Ebt Administrative Costs $628