Finding Text
Criteria: Allowable Costs/Activites Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. Condition: The amount claimed on the 11/30/23 final expenditure report for ESSER II included an expense that had been claimed on the ESSER III 6/30/24 expenditure report. The amount claimed on the 11/30/23 final expenditure report for ESSER II included an expense that had been claimed on the Digital Equity I (2021 Grant Year) 6/30/22 expenditure report. Questioned Costs: Total questioned costs of $43,447: $3,333 in 1000-100 double-reported in ESSER II and ESSER III; $4,800 in 1000-300 double reported in ESSER II and Digital Equity I (Grant Year 2021); $35,314 in 1000-400 double-reported in ESSER II and Digital Equity I (Grant Year 2021). Context: Various journal entries were made at year-end moving items out of ESSER II accounts and into other grant accounts, where they were included in grant expenditure reports and subsequently reimbursed. 3 employees had their last pay moved out of the ESSER II 1000-100 grant accounts ($2,655.71, $552.00, and $125.00 respectfully for a total of $3,332.71) and moved into an ESSER III 1000-100 grant account, where these amounts were included in the grant reports for ESSER III from 8/31/23 through 6/30/24. A manual journal entry moved $4,800 out of an ESSER II 1000-300 account and into a Digital Equity 1000-300 account, where this amount was included in the grant reports for Digital Equity I (Grant Year 2021) through 6/30/22. A journal entry moved $35,998.50 out of an ESSER II 1000-400 account and into a Digital Equity 1000-400 account, where a portion of this amount, totaling $35,414.74, was included in the grant reports for Digital Equity I (Grant Year 2021) through 6/30/22. Effect: The District did not file an accurate expenditure report at 11/30/23 resulting in $43,447.34 of expenses claimed across different grants. There is an increased risk that these funds will be subject to repayment as they were incorrectly submitted for reimbursement. Cause: The District claimed the same expenses for Digital Equity I (2021 Grant Year) and ESSER II. The District claimed the same expenses for ESSER II and ESSER III. The District's financial specialist started at the beginning of the year, and ESSER II and ESSER III claimed items from prior years (from 2021, 2022, and 2023, when the previous financial specialist was still working at the District. Recommendation: We recommend reviewing the general ledger and journal entries made at the end of the year for duplicate or unallowable expenses before entering into the expenditure report and submitting. Management's Response: The District will review the general ledger and end-of-year journal entries for duplicate or unallowable expenses before submitting quarterly reports.