Finding Text
#2022-002 ? CTE ? Basic Grants to States, CFDA #84.048, Passed through the Pennsylvania Department of Education Criteria: The Center is required to maintain internal controls over compliance to prevent and detect, in a timely manner, unallowable costs under federal programs. Condition: The Center submitted for reimbursement the full retirement cost for benefits, and failed to reduce the claim by the retirement subsidy provided by the Pennsylvania Department of Education. Cause: The Center relied on spreadsheet reconciliations that contained formula errors and overwritten data to calculate allowable costs under the program. The spreadsheet was not properly reviewed to detect the errors. Effect: Costs were charged to the program that were unallowable under the terms of the contract. The Center overstated retirement benefit costs, resulting in questioned costs of $72,846. In addition, the Center also requested excess restricted indirect costs in the amount of $1,073, for a total of $73,919 in questioned costs under the program. Final expenditure reporting for this program was also inaccurate. Recommendation: We recommend that the business office review all grant close out spreadsheets for accuracy and consistency prior to submission. We also recommend the Center contact the Pennsylvania Department of Education to resolve the questioned costs. Views of responsible officials and planned corrective actions: The Center recognizes the oversight and will be in contact with the Department of Education to take necessary steps to remedy the questioned costs. The Center also plans to ensure proper monitoring of spreadsheet reconciliations, and conduct regular review of grant documentation.