Finding 588336 (2023-003)

Significant Deficiency
Requirement
M
Questioned Costs
$1
Year
2023
Accepted
2024-02-06

AI Summary

  • Core Issue: Inadequate monitoring of subrecipient payments led to $11,383 in questioned costs, including a potential fraudulent invoice.
  • Impacted Requirements: Federal compliance mandates that subrecipients must be monitored to ensure funds are used appropriately and meet performance goals.
  • Recommended Follow-Up: Management should create and implement clear policies and procedures for monitoring subrecipient reimbursements.

Finding Text

U.S. Department of Health and Human Services 2023-003 Monitoring of payments to subrecipient Program: COVID-19 Child Care and Development Block Grant - Assistance Listing No. 93.575; Grant No. 2101LACDC6 & COVID-19 Child Care Development – Assistance Listing No. 93.596; Grant No. 2101LACCC5 Grant Period: Year Ended June 30, 2023; Pass-through Entity Name: Louisiana Department of Education Criteria: Federal compliance requirements call for monitoring of subrecipients to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. It appears that the program has not complied with these requirements. Condition: Audit sample testing identified 2 out of 40 transactions that lacked adequate documentation to support subrecipient reimbursements. This may have resulted in payment of $11,383 in questioned costs. Of this amount, $3,624 is alleged to be a fraudulent invoice submitted by a subrecipient. See finding 2023-002 for additional information. Cause of Condition: It appears that management may not have had adequate controls designed and in place to monitor subrecipient reimbursements. Potential Effect of Condition: The $11,383 is considered questioned costs. Due to the allegation of potential fraud we consider this to be material to the program. Recommendation: Management should consider developing appropriate written policies and procedures to ensure proper monitoring of payments to subrecipients. Management’s Response: We agree with the recommendations and will make necessary changes to policies and procedures.

Categories

Questioned Costs Subrecipient Monitoring

Other Findings in this Audit

  • 11893 2023-003
    Significant Deficiency
  • 11894 2023-003
    Significant Deficiency
  • 588335 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.71M
93.575 Child Care and Development Block Grant $948,381
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $696,612
10.553 School Breakfast Program $652,433
10.555 National School Lunch Program $500,148
84.367 Improving Teacher Quality State Grants $290,903
84.027 Special Education_grants to States $145,686
84.358 Rural Education $132,936
84.424 Student Support and Academic Enrichment Program $119,017
93.434 Every Student Succeeds Act/preschool Development Grants $110,488
84.048 Career and Technical Education -- Basic Grants to States $82,335
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $41,742
10.579 Child Nutrition Discretionary Grants Limited Availability $19,985
10.649 Pandemic Ebt Administrative Costs $6,180
84.425 Education Stabilization Fund $5,093
84.365 English Language Acquisition State Grants $4,185
84.173 Special Education_preschool Grants $2,952