Finding 504255 (2024-002)

Instances of Noncompliance with Laws or Regulations Known Questioned Costs Exceeding $25,000 For Federal Program Which Is Not Audited as a Major Program Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: NYS Education Department Assistance Listing Number: 84.010A Applicable Compliance Component: Period of Performance Known Questioned Cost Amount: $38,820 Criteria The District is responsible for ensuring grant money is used for costs that are allowable and related to each grants purpose. Each federal grant specifies a performance period during which program costs may be obligated or liquidated. Payments for costs charged before or after a grants beginning and end dates are not allowed without the grantor’s prior approval. Condition It was found that $92,000 in expenditures charged to the Title I grant on the final expenditure report were an estimated amount. Only $53,180 of expenditures within the grant guidelines and grant period were found to be incurred by the District. The remaining $38,820 was determined to be questioned costs. Effect We are questioning $38,820 improperly charged expenditures made to the Title I grant which have been collected from the NYS Education Department. We question costs when we find a District has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. During audit procedures, adjusting journal entries were recorded to remove the costs from federal revenue and instructional expenses, and are reported on the audited financial statements as due to other governments. Cause Management did not provide proper oversight to ensure any improper charges were identified and reversed by staff prior to filing of a final cost report to the grant agency. Recommendation We recommend the District review their internal controls over ensuring grant money is used for allowable costs and within the grant period submitted for. The Title I grant should be reviewed and an amended final cost report filed with SED and the $38,820 of questioned costs returned to the Department of Education.