CONDITION: The Sto-Rox School District Did not submit a budget revision to the Pennsylvania Department of Education (PDE) for ARP ESSER in instances where 1) variances to the approved budget exceeded 20 percent by function code (9 instances), 2) function code categories remained unspent (5 instances), and 3) there were expenditures coded to unbudgeted function codes (9 instances).
CRITERIA: In accordance with Pennsylvania Department of Education regulations, when the expenditure for a function code (line item) exceeds the last approved budgeted amount by 20% or more, the Schol District must submit a budget revision prior to submitting the Final Expenditure Report. In addition, the School District should not begin new programs/services or spend federal grant funds on expenses other than what is in the approved budget until written approval is obtained from the PDE Division of Federal Programs. RECOMMENDATION: I am recommending that the management of the School District implement procedures, as a matter of policy, for the timely submission of budget revisions to PDE when the expenditure for a function code (line item) exceeds the last approved budgeted amount by 20% or more, prior to submitting the Final Expenditure Report. In addition, the implemented procedures should ensure that the School District has measures in place for not beginning new programs/services or spending federal grant funds on expenses other than what is in the approved budget until written approval is obtained from the PDE Division of Federal Programs.
MANAGEMENT’S PLANNED CORRECTIVE ACTION: The StoRx School District will implement procedures for timely and accurate reporting of Final Expenditure Reports, budget modifications, and other reporting requirements. The District’s business office, in concert with our Director of Federal Programs, will submit budget revisions for unspent function codes, unbudgeted function codes, and/or function codes with a variance greater than 20 percent for clarity and transparency. If circumstances require the re-opening of previous reports, the District will contact the Regional Coordinator or Technical Administrator from the AIU #3.