Finding 508242 (2024-001)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2024-11-18
Audit: 328715
Organization: Sandoval Cusd 501 (IL)

AI Summary

  • Core Issue: The District incorrectly used ESSER 3 funds as a matching contribution for the USDA grant, violating federal regulations.
  • Impacted Requirements: Title 7, Subtitle B, Chapter XVII, Part 1734, Paragraph 22(e) prohibits federal funds from being counted as matching contributions.
  • Recommended Follow-Up: Management should ensure staff are trained on grant regulations to avoid future compliance issues.

Finding Text

Criteria: Title 7, Subtitle B, Chapter XVII, Part 1734, Paragraph 22(e) states that financial assistance from Federal sources will not be considered as matching contributions. Condition: The District used ESSER 3 grant funding as the matching contribution requirement for its USDA Distance Learning & Telecommunication grant. Questioned Costs: $5,791 - the amount of match required by the USDA Distance Learning & Telecommunication grant and claimed as an ESSER 3 expenditure. Context: District claimed reimbursement through the ESSER 3 grant program for the local match of the USDA Distance Learning & Telecommunication grant, and received such reimbursement from the pass through entity. Effect: The District received $5,791 of ESSER 3 funding by claiming a nonallowable expenditure. Cause: District management was unfamiliar with the regulations regarding federal grant matching. Management received erroneous guidance from another District, but did not verify the accuracy of the guidance. Recommendation: Management should familiarize itself with all grant regulations of all grants received, especially those that are unfamiliar to the District. Management Response: Management (or responsible employees) will enroll in training and become educated with all compliance requirements of new grant programs.

Corrective Action Plan

The District did not familiarize itself with all the types of compliance requirements for federal grants received. In the future, the District will designate the employee responsible for each grant to become educated on all grant compliance items, and to communicate those items to all necessary parties. The Superintendent will discuss this matter with all applicable personnel on or before November 1, 2024.

Categories

Questioned Costs Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 508243 2024-001
    Material Weakness
  • 1084684 2024-001
    Material Weakness
  • 1084685 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $329,850
10.555 National School Lunch Program $244,134
84.027 Special Education_grants to States $129,191
10.553 School Breakfast Program $84,246
10.855 Distance Learning and Telemedicine Loans and Grants $38,600
84.367 Improving Teacher Quality State Grants $23,677
93.778 Medical Assistance Program $17,005
84.358 Rural Education $12,384
84.424 Student Support and Academic Enrichment Program $9,491
10.582 Fresh Fruit and Vegetable Program $9,319
84.173 Special Education_preschool Grants $7,999
84.425 Education Stabilization Fund $2,425
10.649 Pandemic Ebt Administrative Costs $653