Finding 48948 (2022-002)

Department of Education: 2022-001 84.425C American Rescue Plan-Elementary and Secondary School Emergency Relief Funds Criteria and Condition: Per the Office of Management and Budget Compliance Supplement and the Cost Principles for for State, Local, and Indian Tribe Governments, claims for reimbursements must be for actual costs incurred. Context: A test of expenditures during the year showed that an invoice in the amount of $626,729 was submitted twice to Virginia Department of Education for reimbursement under the Education Stabilization Fund. Cause: The School Board's internal control procedures failed to detect the duplicated expenditure requested for reimbursement. Effect: Expenditures were overstated by $626,729 due to requesting reimbursement for duplicated expenditures. Additionally, $626,729 was reported as revenue by the school board that was unearned. Questioned Costs: $626,729 was requested for reimbursement twice from the Department of Education. Recommendation: Policies and procedures should be in place to properly use the appropriate project codes set aside in RDA when requesting reimbursement to ensure expenditures are only requested once. Views of Responsible Officials and Planned Corrective Actions: The School Board will reconcile ESSER expenditures to RDA when submitting reimbursement requests. Additionally, the $626,729 of unearned funds was withheld from a future reimbursement request at the advice of the Virginia Department of Education.