Finding Text
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.
EFFECT: The Sto-Rox School District did not comply with PDE regulatory guidance with regard to submitting a budget revision to PDE when the expenditure for a function code (line item) exceeded the last approved budgeted amount by 20% or more, prior to submitting the Final Expenditure Report. In addition, the School District did not comply with PDE regulatory guidance regarding 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.
QUESTIONED COST: None
CAUSE: As a result of staff turnover, the School District inadvertently did not comply with PDE regulatory guidance for the submission of budget revisions and spending in non-approved budgetary categories.
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.
VIEWS OF RESPONSIBLE OFFICIALS: The School District concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.