FAC Explorer

Finding 516664 (2024-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2024-12-23
Audit: 334654
Organization: Multnomah County School District No. 3 (OR)
Auditor: Pauly Rogers and CO PC

AI Summary

  • Core Issue: The District overcharged indirect expenditures by using estimates instead of actual costs.
  • Impacted Requirements: Indirect expenditures must align with the ODE approved indirect rate.
  • Recommended Follow-Up: Ensure future indirect expenditures are based on actual costs and maintain detailed worksheets for journal entries.

Finding Text

FEDERAL AWARD PROGRAM: 84.425 Elementary and Secondary School Emergency Relief Fund SPECIFIC REQUIREMENT: Indirect expenditures should be within the ODE approved indirect rate. CONDITION: During our testing of indirect expenditures, it was noted that the District overcharged the indirect expenditures due to being calculated off of estimates rather than actual expenditures. QUESTIONED COSTS: CONTEXT: Indirect expenditures were overcharged. EFFECT: Indirect expenditures were overcharged. CAUSE: The District calculated indirect expenditures based on estimates rather than actual expenditures. RECOMMENDATION: We recommend the District charge indirect expenditures based on actual expenditures. VIEWS OF RESPONSIBLE OFFICIALS: The District completed the correcting journal entry 2179 to bring grant expenditures in agreement with Schedule of Expenditures of Federal Awards dated 6/30/24. In the future when journal entries are being done a separate worksheet will be prepared to go along with journal entry support to show calculations and how expenditures will tie to actual general ledger expenditures.

Corrective Action Plan

a. Significant Deficiency- SA-2024-1 -- The auditor noted during testing of indirect expenditures, it was noted that the district overcharged the indirect expenditures due to being calculated off estimates rather than actual expenditures. The federal program being audit was 84.425 Elementary and Secondary School Emergency Relief Fund. The auditor's recommendation is that the District charge indirect expenditures based on actual expenditures. b. The district completed the correcting journal entry 2179 to bring grant expenditures in agreement with Schedule of Expenditures of Federal Awards dated 6/30/24. c. In the future when journal entries are being done a separate worksheet will be prepared to go along with journal entry support to show calculations and how expenditures will tie to actual general ledger expenditures .

Categories

Reporting

Other Findings in this Audit

  • 1093106 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19-Education Stabilization Fund $3.40M
84.010 Title I Grants to Local Educational Agencies $1.14M
10.555 National School Lunch Program $886,382
84.027 Special Education Grants to States $564,434
10.553 School Breakfast Program $197,208
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $124,637
10.558 Child and Adult Care Food Program $91,509
84.365 English Language Acquisition State Grants $70,315
84.027 Covid-19-Special Education Grants to States $69,906
84.424 Student Support and Academic Enrichment Program $67,229
10.582 Fresh Fruit and Vegetable Program $40,427
10.559 Summer Food Service Program for Children $35,096
93.297 Teenage Pregnancy Prevention Program $5,000
10.185 Local Food for Schools Cooperative Agreement Program $4,704
10.649 Pandemic Ebt Administrative Costs $3,256
84.173 Covid-19-Special Education Preschool Grants $2,202
84.196 Education for Homeless Children and Youth $1,348
84.173 Special Education Preschool Grants $283