Finding Text
Finding 2024-006 – Oversight Processes and Internal Controls over Completeness and Existence
of Expenditures of Federal Awards
Federal Agency: United States Department of Education
Federal Program Name: COVID-19 Education Stabilization Fund
Federal Award Identification Number and Year: AL No. 84.425 D and 84.425 U
Pass-Through Agency: Pennsylvania Department of Education
Award Period: 3/13/20 - 9/30/24
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria: Management is responsible for maintaining adequate processes and internal controls
over the review, approval and recording of all federal expenditures into the accounting system.
Condition: The District maintains several internally prepared spreadsheets to track accounting
records such as expenditures of federal awards for various funds. During audit procedures, it was
noted that the internally prepared tracking spreadsheet of federal expenditures was altered from
prior year. As a result, during testing procedures of the Activities and Costs Allowed or
Unallowed, We noted instances where total invoice charges did not agree to the population.
Questioned Costs: None
Cause: Turnover in the Business Office has made it difficult to maintain consistent
reconciliations and centralized review processes. Adjustments were ultimately identified by the
District but not reviewed in an appropriate manner.
Effect: As a result, significant adjustments were required to the internally prepared spreadsheets
to accurately reflect the activity and balances at year end. The alteration of the data, including
prior year data, compromised the completeness of the file. A lack of consistent and timely
reconciliation processes, specifically related to expenditures of federal awards, and proper review
allowed for errors in the accounting to go unnoticed, resulting in inaccurate financial reporting.
Repeat Finding: No
Recommendations: We recommend that the District establishes a centralized review process for
all expenditures of federal awards. This process should allow for at least one level of review to
be done by an experienced person other than the one who prepared the schedule.
View of Responsible Officials: Management agrees with the finding and will take the necessary
corrective actions.