Finding 58866 (2022-003)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-08-03
Audit: 55581
Organization: Wellsboro Area School District (PA)

AI Summary

  • Core Issue: Internal controls for managing Education Stabilization Fund grants were ineffective, leading to incomplete federal expenditure data.
  • Impacted Requirements: The lack of proper coding for expenditures prevented the District from providing a full list of federal expenditures for auditing.
  • Recommended Follow-Up: Review and enhance internal controls for grant management to ensure accurate coding and reporting of expenditures from the start.

Finding Text

2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.

Corrective Action Plan

Corrective Action Plan July 10, 2023 Federal Audit Clearinghouse Wellsboro Area School District respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: EFPR Group, CPAs, PLLC 8 Denison Parkway East, Suite 407 Corning, NY 14830 Audit period: July 1, 2021 ? June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Audit Finding: Material Weakness Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered. Contact Person Responsible for Corrective Action: Alanna Huck, Superintendent. Anticipated Completion Date: December 31, 2023. If the Federal Audit Clearinghouse has questions regarding this plan, please call Alanna Huck at 570-724-4424. Sincerely yours, Alanna Huck Wellsboro Area School District Superintendent

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $661,765
84.010 Title I Grants to Local Educational Agencies $507,372
84.027 Special Education_grants to States $306,539
10.553 School Breakfast Program $228,875
84.048 Career and Technical Education -- Basic Grants to States $100,249
10.555 Surplus Food Distribution $73,892
84.027 Special Education Grants to States(idea Part B) - Arp $68,786
84.367 Improving Teacher Quality State Grants $60,802
84.424 Student Support and Academic Enrichment Program $38,556
10.555 Supply Chain Assistance $32,127
84.425 Education Stabilization Fund $8,527
10.555 Snp Emergency Operating Costs $6,548
84.173 Special Education_preschool Grants $3,248
10.649 Child Nutrition Discretionary Grants Limited Availability $614