Finding Text
Finding 2023-003 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U
Department of Education
Massachusetts Department of Elementary and Secondary Education
Other Matters Related to Internal Control over Compliance of the Major Programs
Condition: During our test of controls over compliance it was noted that payroll for a Tutor was charged to the Education Stabilization ESSER II major program grant, however the expense should have been charged to the ESSER III major program instead.
Criteria: Costs charged to the Education Stabilization ESSER II major program should meet the requirements as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles).
Context: During our review of payroll transactions posted to the Education Stabilization ESSER II major program it was noted that a Tutor charged to the Education Stabilization ESSER II major program grant should have been charged to Education Stabilization ESSER III based on the supporting documentation provided.
Effect: Town of Acushnet was not in compliance with the allowable costs/ cost principals requirement as set forth by the Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles).
Questioned Costs: Could not be determined.
Cause: The Town of Acushnet (School Department) implemented “best” practice of spending down older grant (ESSER II) awards prior to spending down newer awards. Due to timing, the grant budget was not amended prior to spend down of this related expense.
Identification as a Repeat Finding: N/A
Recommendation: We recommend the Town of Acushnet follow procedures to ensure that payroll expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles)
Managements Response: We acknowledge the finding related to the payroll transaction for the Tutor charged to the Education Stabilization ESSER II major program grant. Upon review, we agree that based on the supporting documentation, the charges should have been posted to Education Stabilization ESSER III, rather than ESSER II.
This was a result of a late adjustment made in order to utilize the remaining ESSER II funds before transitioning to the use of ESSER III funds. We understand the importance of correctly applying charges to the appropriate funding source and moving forward, we will ensure that our procedures are adjusted to avoid such misallocations and that all future charges are properly aligned with the designated funding source, in accordance with the established guidelines.