Finding 505451 (2023-007)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-11-13

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards was understated by $302,121 due to omissions and errors, including missing grants and incorrect reporting.
  • Impacted Requirements: Compliance with 2 CFR Subpart F § 200.510(b) was not met, risking future grant awards and affecting the accuracy of major federal program assessments.
  • Recommended Follow-Up: The Treasurer should review federal expenditures for accuracy to ensure the Schedule is complete and correctly identifies major programs for audit.

Finding Text

2 CFR Subpart F § 200.510(b) requires the auditee prepare a Schedule of Expenditures of Federal Awards (the Schedule) for the period covered by the District’s financial statements which must include the total federal awards expended as determined in accordance with § 200.502. At a minimum, the Schedule must: 1. List individual Federal programs by Federal agency. 2. For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. 3. Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. 4. Include the total amount provided to subrecipients from each Federal program. 5. For loan or loan guarantee programs described in § 200.502 Basis for determining Federal awards expended, paragraph (b), identify in the notes to the schedule the balances outstanding at the end of the audit period. 6. Include notes that describe the significant accounting policies used in preparing the schedule, and note whether or not the auditee has elected to use the 10 percent de minimis cost rate as covered in § 200.414 Indirect (F&A) costs. The lack of effective controls over this compliance requirement resulted in the Schedule being understated $302,121. This was due to the Emergency Connectivity Grant and Coronavirus State Fiscal Recovery Funds being omitted from the Schedule in the amount of $193,280 and $138,836, respectively, an understatement in the Nutrition Cluster of $30,402 and an overstatement of the 21st Century Grant of $60,397. The audited Schedule has been adjusted to correct these items. Noncompliance with grant requirements as well as errors and omissions on the Schedule of Expenditures of Federal Awards could have an adverse effect on future grant awards by the awarding agency in addition to an inaccurate assessment of major federal programs that would be subjected to audit. The Treasurer should review reported federal expenditures to ensure accuracy of amounts reported. This will help ensure the Schedule is complete and accurate, and major federal programs are accurately identified for audit.

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $216,318
32.009 Emergency Connectivity Fund Program $193,280
21.027 Coronavirus State and Local Fiscal Recovery Funds $138,836
10.579 Child Nutrition Discretionary Grants Limited Availability $108,000
84.287 Twenty-First Century Community Learning Centers $103,687
84.358 Rural Education $64,550
10.555 National School Lunch Program $62,234
84.424 Student Support and Academic Enrichment Program $57,394
84.027 Special Education Grants to States $43,534
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $26,923
84.010 Title I Grants to Local Educational Agencies $16,773
84.425 Education Stabilization Fund $7,140
84.173 Special Education Preschool Grants $3,312