Finding 58440 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-27

AI Summary

  • Core Issue: The District lacks adequate controls in its Emergency Connectivity Fund Program, leading to requests for reimbursement before eligible devices were deployed.
  • Impacted Requirements: Compliance with 47 CFR 54.1711, which mandates that support is only sought for devices provided to students and staff with documented unmet needs.
  • Recommended Follow-Up: The District should enhance internal controls and review FCC compliance guidance to prevent future noncompliance and ensure proper reimbursement processes.

Finding Text

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE ? FEDERAL COMMUNICATIONS COMMISSION, EMERGENCY CONNECTIVITY FUND PROGRAM ? FEDERAL ALN 32.009 2022-002 Internal Control Over Compliance With Special Tests and Provisions Criteria ? 47 CFR ? 54.1711 requires that the District only seek support for eligible equipment provided to students and school staff who would otherwise lack connected devices sufficient to engage in remote learning. Condition ? During our audit, we noted the District did not have sufficient controls in place within its Emergency Connectivity Fund Program to assure compliance with federal special tests and provisions requirements. We noted that the District requested federal reimbursement for purchased technology devices prior to those devices being used or deployed, and thus not yet meeting the definition of eligible equipment for which the District could seek reimbursement. Questioned Costs ? None. Our testing did not indicate any instances of noncompliance with these requirements. All devices tested for which the District received reimbursement were deployed within the period of performance to individuals for which the District had documented an unmet need as approved in its funding applications. Context ? Of 25 devices tested, reimbursement was requested for 23 prior to the date at which the devices were being used or deployed to meet an unmet need. This was not a valid statistical sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel, due to unfamiliarity with a new federal program. Effect ? Noncompliance with the special tests and provisions requirements could be viewed as a violation of the award agreement and result in loss of funds. Recommendation ? We recommend that the District review its internal control procedures relating to special tests and provisions for the Emergency Connectivity Fund Program. The District should review the compliance guidance issued by the Federal Communications Commission to familiarize itself with federal compliance requirements specific to the Emergency Connectivity Fund Program. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to special tests and provisions requirements to ensure compliance in the future with any additional federal awards. The District has separately issued a Corrective Action Plan related to this finding.

Corrective Action Plan

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE ? FEDERAL COMMUNICATIONS COMMISSION, EMERGENCY CONNECTIVITY FUND PROGRAM ? FEDERAL ALN 32.009 2022-002 Internal Control Over Compliance With Special Tests and Provisions Finding Summary 47 CFR ? 54.1711 requires that the District only seek support for eligible equipment provided to students and school staff who would otherwise lack connected devices sufficient to engage in remote learning. During our audit, we noted the District did not have sufficient controls in place within its Emergency Connectivity Fund Program to assure compliance with federal special tests and provisions requirements. We noted that the District requested federal reimbursement for purchased technology devices prior to those devices being used or deployed, and thus not yet meeting the definition of eligible equipment for which the District could seek reimbursement. Corrective Action Plan Actions Planned ? The finding resulted from a timing issue caused by unfamiliarity with a new federal program. The District subsequently deployed all devices for which it was reimbursed to students in accordance with the unmet needs defined and approved in its award applications. The District understands the applicable guidance and will ensure that future reimbursement requests under the Emergency Connectivity Fund Program will not be made until after the equipment has been placed in service. Official Responsible ? Director of Finance and Operations, Christopher Kampa. Planned Completion Date ? March 31, 2023. Disagreement With or Explanation of Finding ? The District is in agreement with this finding. Plan to Monitor ? The District?s Director of Finance and Operations, Christopher Kampa, will assure appropriate internal controls are in place to verify future compliance with special tests and provisions requirements for the Emergency Connectivity Fund Program.

Categories

Internal Control / Segregation of Duties Special Tests & Provisions Procurement, Suspension & Debarment Cash Management Period of Performance Significant Deficiency Equipment & Real Property Management

Other Findings in this Audit

  • 634882 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $2.17M
10.553 School Breakfast Program $707,680
32.009 Emergency Connectivity Fund Program $621,958
84.010 Title I Grants to Local Educational Agencies $482,566
21.027 Coronavirus State and Local Fiscal Recovery Funds $335,591
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $268,571
84.027 Special Education_grants to States $250,614
93.575 Child Care and Development Block Grant $95,111
84.367 Supporting Effective Instruction State Grants $45,936
84.424 Student Support and Academic Enrichment Program $29,429
84.181 Special Education-Grants for Infants and Families $28,018
84.425 Education Stabilization Fund $15,848
84.048 Career and Technical Education -- Basic Grants to States $12,513
84.365 English Language Acquisition State Grants $9,432
84.173 Special Education_preschool Grants $8,010
10.649 Pandemic Ebt Administrative Costs $349