Finding 517086 (2023-007)

Significant Deficiency
Requirement
H
Questioned Costs
$1
Year
2023
Accepted
2024-12-29
Audit: 334970
Organization: Guam Department of Education (GU)

AI Summary

  • Core Issue: GDOE charged $113,767 in costs after the federal award's period of performance ended, violating compliance requirements.
  • Impacted Requirements: Costs must be incurred within the specified period; obligations must be liquidated within 120 days post-performance unless extended.
  • Recommended Follow-Up: Enforce monitoring controls to ensure compliance with period of performance; verify dates before charging costs to federal awards.

Finding Text

Finding No.: 2023-007 Federal Agency: U.S. Department of the Interior Pass-Through Entity: Government of Guam AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Period of Performance Questioned Costs: $113,767 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Condition: GDOE charged costs to a federal award after the period of performance ended, as follows: Subsequently, on August 21, 2024, GDOE provided journal entry GEN 120 to transfer $112,157 from Grant 2016 D16AP00059 to Grant 2021 D21AP0036. However, the corresponding 2016 expenditures were obligated prior to 03/01/2021, which is the POP start date for Grant 2021. Therefore, GEN 120 does not result in effective corrective action. No questioned cost is presented for Federal Award No. D15APG0047 and D17AP00103 because GDOE subsequently recorded journal entries in July 2024 to charge costs appropriately to grant year 2019. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Finding No.: 2023-007, continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Period of Performance Questioned Costs: $113,767 Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $113,767. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. GDOE is in receipt of Department of Interior grants and manages said funds in coordination with BBMR and Guam Homeland Security. GDOE established projects that were allowable for the use of these funds on a reimbursement basis. In an effort to maximize federal funding, GDOE initiated a transfer of expenses which was tied to a purchase order in FY 2016. Plan of action and completion date: GDOE Financial Affairs has recorded an adjusting journal entry to record the expenditures under FY 2021 but will have to reclass the expenditure in to FY 2020. GDOE will assign an accountant to reconcile GDOE’s Department of Interior budget availability with BBMR and will monitor AS400 for proper recording of transactions. Plan to monitor and responsible officials: The Comptroller (vacant) will monitor on a quarterly basis expenditure from the Department of Interior grant and will prepare a progress report on a semi-annual basis to the Deputy of Finance and Administrative Services, Morgan W. Paul, for review and approval.

Categories

Questioned Costs Subrecipient Monitoring Period of Performance Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 517081 2023-004
    Material Weakness
  • 517082 2023-005
    Significant Deficiency
  • 517083 2023-006
    Significant Deficiency
  • 517084 2023-007
    Significant Deficiency
  • 517085 2023-008
    Significant Deficiency
  • 517087 2023-008
    Significant Deficiency
  • 517088 2023-007
    Significant Deficiency
  • 517089 2023-008
    Significant Deficiency
  • 517090 2023-009
    Material Weakness Repeat
  • 517091 2023-010
    Significant Deficiency Repeat
  • 517092 2023-009
    Material Weakness Repeat
  • 517093 2023-010
    Significant Deficiency Repeat
  • 517094 2023-011
    Significant Deficiency
  • 517095 2023-012
    Material Weakness Repeat
  • 517096 2023-013
    Material Weakness
  • 517097 2023-014
    Significant Deficiency
  • 517098 2023-015
    Material Weakness Repeat
  • 517099 2023-016
    Material Weakness
  • 517100 2023-014
    Significant Deficiency
  • 517101 2023-015
    Material Weakness Repeat
  • 517102 2023-016
    Material Weakness
  • 1093523 2023-004
    Material Weakness
  • 1093524 2023-005
    Significant Deficiency
  • 1093525 2023-006
    Significant Deficiency
  • 1093526 2023-007
    Significant Deficiency
  • 1093527 2023-008
    Significant Deficiency
  • 1093528 2023-007
    Significant Deficiency
  • 1093529 2023-008
    Significant Deficiency
  • 1093530 2023-007
    Significant Deficiency
  • 1093531 2023-008
    Significant Deficiency
  • 1093532 2023-009
    Material Weakness Repeat
  • 1093533 2023-010
    Significant Deficiency Repeat
  • 1093534 2023-009
    Material Weakness Repeat
  • 1093535 2023-010
    Significant Deficiency Repeat
  • 1093536 2023-011
    Significant Deficiency
  • 1093537 2023-012
    Material Weakness Repeat
  • 1093538 2023-013
    Material Weakness
  • 1093539 2023-014
    Significant Deficiency
  • 1093540 2023-015
    Material Weakness Repeat
  • 1093541 2023-016
    Material Weakness
  • 1093542 2023-014
    Significant Deficiency
  • 1093543 2023-015
    Material Weakness Repeat
  • 1093544 2023-016
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.403 Consolidated Grant to the Outlying Areas $26.20M
10.555 National School Lunch Program $16.81M
15.875 Economic, Social, and Political Development of the Territories $5.74M
84.425 Education Stabilization Fund $4.01M
84.027 Special Education Grants to States $2.80M
84.181 Special Education-Grants for Infants and Families $1.67M
84.371 Comprehensive Literacy Development $326,597
12.U01 Army Jrotc $303,008
84.372 Statewide Longitudinal Data Systems $267,608
10.560 State Administrative Expenses for Child Nutrition $257,847
12.U02 Air Force Jrotc $218,197
93.600 Head Start $210,378
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $162,290
84.323 Special Education - State Personnel Development $160,284
12.U03 Marine Jrotc $74,691
10.558 Child and Adult Care Food Program $34,833
84.424 Student Support and Academic Enrichment Program $14,274
10.574 Team Nutrition Grants $12,444
10.568 Emergency Food Assistance Program (administrative Costs) $5,918
10.579 Child Nutrition Discretionary Grants Limited Availability $2,584