Finding 523620 (2024-002)

2024-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 - Education Stabilization Fund - 84.425; U.S. Department of Education passed through the Pennsylvania Department of Education; Grant 224-21-1242 (Period 3/13/20 - 9/30/24) Criteria The Center is required to submit an annual performance report to the Commonwealth of Pennsylvania (the “State”) with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Condition During the year ended June 30, 2024, the Center submitted a report for the funds used during the year ended June 30, 2023. The report submitted by the Center contained expenditure amounts that did not agree to the final amounts reported on the schedule of expenditures of federal awards for the year ended June 30, 2023. Cause The timing of the information entered into the performance report preceded the finalized schedule of expenditures of federal awards. There was also no review process in place of the report before it was filed. Effect The information submitted, which will be used in the State’s report to the Department of Education, was not accurate for the key line items that were tested based on the OMB Compliance Supplement. Questioned Costs None. Context The Center is required to submit the performance report on an annual basis. The required report was submitted timely. The expenditures reported did not agree to the final expenditures on the June 30, 2023 schedule of expenditures of federal awards. Repeat Finding Yes. Recommendation We recommend the Center continue updating its reporting procedures to use the most accurate information possible. In addition, the report should also be reviewed by an individual separate from the person compiling the information. Management Response See corrective action plan included in this report package.