Finding 523209 (2024-002)

-
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-02-13

AI Summary

  • Core Issue: The School used an incorrect vision benefits rate, leading to excess reimbursement funding.
  • Impacted Requirements: Compliance with allowable cost reimbursement standards is essential for federal funding.
  • Recommended Follow-Up: Review and verify the rates in payroll software to ensure accurate reimbursement calculations.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary Emergency Relief and American Rescue Plan – Elementary and Secondary School Emergency Relief Assistance Listing Numbers: 84.425U Federal Award Program Year: July 1, 2023–July 30, 2024 Pass-Through Agency: Arizona Department of Education Pass-Through Number: S425U210038 Type of Finding: Other matter Compliance Requirement: Allowable Cost/Cost Principles Criteria: Grantees must follow allowable cost reimbursement standards, as defined in the compliance supplement for each specific federal program. Condition: The School’s policy regarding allowable cost recognition and requests for reimbursement follow those requirements set forth by the federal program. Questioned Costs: None reportable. Context: Management used the monthly premium rate for vision benefits instead of the bimonthly rate when calculating the reimbursement amount. Effect: The School obtained reimbursement funding over the allowable amount. Cause: The School entered the wrong rate into the payroll software. Identification as a Repeat Finding: Not a repeat finding Recommendation: Review the rate entered into the payroll software to ensure that the proper amounts are being calculated for reimbursement. Views of Responsible Officials and Planned Corrective Actions: Our management team has acknowledged the finding and has immediately implemented a review process for all federal program reimbursement submissions.

Corrective Action Plan

Condition: The School’s policy regarding allowable cost recognition and requests for reimbursement follow those requirements set forth by the federal program. Questionable Costs: During testing, it was determined that vision benefits had been double counted for reimbursement requests during the year ended June 30, 2024. Context: Vision benefits selected for testing had been double counted for reimbursement. Effect: The School obtained reimbursement funding over allowable amount. Cause: The School did not adequately monitor and review reimbursement submission and reporting. Identification as a Repeat Finding: Not a repeat finding Recommendation: All federal program reimbursement requests should be reviewed for accuracy and appropriateness. Response: Our management team has acknowledged the finding and has immediately implemented a review process for all federal program reimbursement submissions. The error has been fixed and the HR team has added additional controls for the calculation / review of the bi-weekly benefit deduction amounts. Contact Person Responsible for Corrective Action: Denise Alyeshmerni, Director Completion date: December 31, 2024

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $686,821
84.027 Special Education Grants to States $475,547
10.555 National School Lunch Program $337,006
10.553 School Breakfast Program $55,234
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $29,246
84.424 Student Support and Academic Enrichment Program $17,738
84.365 English Language Acquisition State Grants $6,225
84.173 Special Education Preschool Grants $3,759
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $2,396
84.010 Title I Grants to Local Educational Agencies $814