Finding 517999 (2024-002)

Federal Agency: U.S. Department of Education, Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425U210002 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Equipment and Real Property Management, Period of Performance, Reporting, and Special Tests and Provisions Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grant per the June 30, 2024, quarterly report were $231,141 less than the underlying accounting records. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Submitting reports for incorrect amounts can result in incorrect reimbursements. Repeat Finding: Repeat finding of 2023-001. Questioned Costs: None noted. Context: Total expenditures for the ARP ESSER grant per the June 30, 2024, quarterly report were $231,141 less than the underlying accounting records. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate. Subsequent to year end, management made the necessary corrections to the final quarterly ESSER report submitted to the granting agency in October 2024, which reports expenditures through September 30, 2024.