Finding Text
Assistance Listing Number, Federal Agency, and Program Name - Input text
Federal Award Identification Number and Year - 84.425U - COVID-19 Education Stabilization Fund
Pass-through Entity - Colorado Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - Under 34 CFR Section 299.2(b), the School District has to ensure that funds are used in compliance with regulatory provisions and spent only for reasonable and necessary costs of the program. The School District is required to have supporting documentation and approval of grant expenditures to ensure they are an allowable and supported cost under the grant requirements.
Condition - During allowability testing it was discovered the District has no formalized review of the grant budget or expenditures charged to grant. This included expenditures related to payroll and indirect costs.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - Audit procedures designated testing payroll and indirect cost samples and there was no formalized review documented before they were charged to the grant and reimbursement was requested throughout the entire population tested.
Cause and Effect - Lack of controls and review surrounding expenditures charged to the grant could lead to improper expenditures being charges and noncompliance.
Recommendation - It is recommended that the School District review its controls and processes to ensure that they have proper controls in place related to grant budgets and the review of expenditures being charged to the grant to ensure they are allowable.
Views of Responsible Officials and Corrective Action Plan - Weld County School District RE-1 is a samll Rural District with limited personnel resources across the district, including the finance department. The School District worked to set up a formalized review process for grant budgets and expenditures charged to grants. The School District was able to implement the process at the end of FY 24. The School District will continue to use and review this process and refine it through FY25 and FY26.