Finding Text
Item 2024-001 Activities Allowed/Allowable Cost
Education Stabilization Fund (ESF) ALN# 84.425
U.S. Department of Education
Passed through the State Department of Education
Grant period – Years ended September 30, 2024 (84.425U)
Criteria – Per 2 CFR 200.303, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should follow guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition – Controls in place did not operate properly to ensure that expenses were approved for allowability prior to purchase.
Cause – Officials relied on approved budget for ESSER to substantiate the purchase of supplies made with ESSER funds.
Effect – Lack of controls for proper approval on disbursements could lead to disallowed costs. We noted that certain payments lacked approval, however, our audit disclosed no instances of unallowable costs.
Questioned Costs – N/A.
Recommendation – We recommend the strengthening of controls to ensure that all expenses are properly approved by adequate officials as noted in procedures.
Management’s Response – The Board will strengthen the controls in place to ensure that all procedures have been followed prior to expenditures being encumbered.