Finding 580074 (2022-004)

Significant Deficiency
Requirement
H
Questioned Costs
$1
Year
2022
Accepted
2023-12-06
Audit: 5640
Organization: Guam Department of Education (GU)

AI Summary

  • Core Issue: GDOE charged costs after the federal award's period of performance ended, leading to noncompliance.
  • Impacted Requirements: Costs must be incurred and liquidated within the specified period; failure to do so resulted in $1,835 in questioned costs.
  • Recommended Follow-Up: Enforce monitoring controls to ensure compliance with period of performance requirements before charging costs or liquidating obligations.

Finding Text

Finding No.: 2022-004 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education – Grants to States Area: Period of Performance Questioned Costs: $1,835 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Conditions: 1. GDOE charged costs to a federal award after the period of performance ended, as follows: No questioned cost is reported because GDOE subsequently provided journal entry JNL 37, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. 2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as follows: Federal Award No. Liquidation End Date Liquidation Date Expenditures $ 1,996 No questioned cost is reported for $161 because GDOE subsequently provided journal entry JNL 39, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. Reportable questioned costs total $1,835 from Condition 2. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. During the period of performance in question, the TPFA issued check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one day after the liquidation period expired. GDOE’s Corrective Action Plan includes additional details.

Categories

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 3632 2022-004
    Significant Deficiency
  • 3633 2022-005
    Significant Deficiency
  • 3634 2022-004
    Significant Deficiency
  • 3635 2022-005
    Significant Deficiency
  • 3636 2022-006
    Significant Deficiency
  • 3637 2022-007
    Significant Deficiency
  • 3638 2022-008
    Material Weakness
  • 3639 2022-009
    Significant Deficiency Repeat
  • 3640 2022-010
    Significant Deficiency
  • 3641 2022-009
    Significant Deficiency
  • 3642 2022-010
    Significant Deficiency
  • 3643 2022-009
    Significant Deficiency
  • 3644 2022-010
    Significant Deficiency
  • 580075 2022-005
    Significant Deficiency
  • 580076 2022-004
    Significant Deficiency
  • 580077 2022-005
    Significant Deficiency
  • 580078 2022-006
    Significant Deficiency
  • 580079 2022-007
    Significant Deficiency
  • 580080 2022-008
    Material Weakness
  • 580081 2022-009
    Significant Deficiency Repeat
  • 580082 2022-010
    Significant Deficiency
  • 580083 2022-009
    Significant Deficiency
  • 580084 2022-010
    Significant Deficiency
  • 580085 2022-009
    Significant Deficiency
  • 580086 2022-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.403 Consolidated Grant to the Outlying Areas $29.12M
10.555 National School Lunch Program $14.22M
15.875 Economic, Social, and Political Development of the Territories $5.74M
84.181 Special Education-Grants for Infants and Families $1.47M
12.U01 Army Jrotc $306,137
84.372 Statewide Longitudinal Data Systems $295,823
84.323 Special Education - State Personnel Development $282,177
84.371 Striving Readers $248,220
12.U02 Air Force Jrotc $237,290
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $196,814
93.600 Head Start $195,216
84.425 Education Stabilization Fund $181,866
10.541 Child Nutrition-Technology Innovation Grant $131,428
10.560 State Administrative Expenses for Child Nutrition $93,913
10.568 Emergency Food Assistance Program (administrative Costs) $43,844
10.575 Farm to School Grant Program $42,690
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $36,971
10.558 Child and Adult Care Food Program $32,401
10.574 Team Nutrition Grants $19,946
84.027 Special Education_grants to States $2,014
12.U03 Marine Jrotc $1,285