Finding 584816 (2023-001)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-01-12

AI Summary

  • Core Issue: The District failed to keep proper records to prove unmet connectivity needs and per-user limits, leading to compliance issues with the ECF Program.
  • Impacted Requirements: Non-compliance with FCC Report and Order 21-58 regarding documentation for funding connected devices and hotspots during the COVID-19 pandemic.
  • Recommended Follow-Up: Implement stronger record-keeping practices and review program requirements before applying for federal funding to avoid questioned costs.

Finding Text

Criteria or Specific Requirements In accordance with FCC Report and Order 21-58 paragraph 5, ECF Program support shall be used by schools to meet the otherwise unmet connectivity needs of students and school staff during the COVID-19 pandemic. In accordance with FCC Report and Order 21-58 paragraph 54, ECF Program support shall not be used to fund more than one connected device and more than one Wi-Fi hotspot per students or school staff member during the COVID-19 emergency period. Condition The District did not maintain adequate documentation to substantiate some of the unmet need and per-user limitations. Based on the available records, the District was able to substantiate unmet need for 144 computers (unit costs of $1,101.12). Questioned Costs Due to lack of records to substantiate the some unmet need, which was the primary goal of the program, we identify $75,425.84 as questioned costs out of the total reimbursement of $233,987.12 (devices only) as questioned costs. (A) Unmet Need 144 (B) Per Unit Costs $ 1,101.12 (C) = (A) x (B) Calcualted Allowable Costs $ 158,561.28 (D) Amount Received $ 233,987.12 (E) = (D) - (C) Questioned Costs $ 75,425.84 Context The condition was identified through inquiries with District management and review of program records. Effect The District is not in compliance with the Restricted Purpose Special Tests for the ECF Program. Cause Due to the time-sensitive need to maintain connectivity for student learning, the District did not prioritize adequate record-keeping in accordance with program requirements. Repeat Finding No. Recommendation The District should ensure that program requirements are reviewed and adequate controls over compliance are in place prior to commencing program activities under federal programs. Corrective Action Plan and Views of Responsible Officials The IT Manager, prior to the filing of any E-Rate or ECF grant documents, have all entries approved by his supervisor. The IT Manager will also set a meeting to review any documentation related to any applications for funding prior to submitting an application to ensure the District is prepared to adequately meet all funding requirements.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Special Tests & Provisions

Other Findings in this Audit

  • 8374 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
32.009 Emergency Connectivity Fund Program $243,944
84.425 Education Stabilization Fund $72,521
10.553 School Breakfast Program $44,262
84.010 Title I Grants to Local Educational Agencies $37,473
84.048 Career and Technical Education -- Basic Grants to States $21,600
84.367 Improving Teacher Quality State Grants $18,515
10.555 National School Lunch Program $16,561
10.665 Schools and Roads - Grants to States $6,721
84.424 Student Support and Academic Enrichment Program $15