Finding Text
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024
U.S. Department of Education
Pass-Through Entity – Pennsylvania Department of Education
Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement.
Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures
Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported.
Identification of Repeat Finding: Yes, #2023-004.
Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures.
Management Response: See Corrective Action Plan.