Finding Text
Finding #2022-002 ? Inconsistencies Between General Ledger Project and PI-1086 Grant Claim Education Stabilization Fund- ESSER II (#84.425D) Federal Grantor - US. Department of Education Pass-through Award Number ? 2022-111736-DPIESSERFII-163 Pass-through Entity - Wisconsin Department of Public Instruction Condition: ESSER II grant reimbursement claims are submitted to the Wisconsin Department of Public Instruction using a PI-1086 report. A PI-1086 reimbursement claim includes the approved budget and the actual allowable program expenditures incurred to date. A PI-1086 claim is a summary report and the detail to support the claim must be maintained by the District. ESSER funding was audited as a major federal program for the year ended June 30, 2022. During the audit, we noted that general ledger costs in Project 163 (ESSER II project) were not consistent with the approved budget amounts or actual disbursement amounts in the PI-1086. Payroll costs included in the approved budget were not recorded to Project 163, and construction costs not included in the approved budget, were recorded to Project 163. After bringing to the District?s attention, late journal entries were made to reallocate the approved budgeted payroll cost to Project 163. Construction costs not included in the ESSER II budget were moved out of Project 163. Criteria: The District is required to track costs claimed on PI-1086 in detail by each grant?s specific project code. Project code numbers are provided by DPI to aid in tracking allowable reimbursable costs claimed to a grant. Reimbursement claims submitted to DPI should agree to the actual costs reported in the general ledger for that grant?s project code. Cause: The District?s approved ESSER II budget was $234,748. An ESSER II grant claim submitted reflected actual disbursements to date of $234,748. The PI-1086 reflected that actual costs incurred were the same as the approved budget. The unaudited general ledger Project 163 expenditures totaled $234,748, however, the breakdown of costs by Account Code object and function was not consistent with the approved budget. This caused confusion about what costs were being claimed. Effect: Costs claimed for reimbursement need to be consistent with the Wisconsin Department of Instruction approved budget. A reimbursement request could be made and paid by DPI for expenditures that did not comply with the approved budget or grant requirements. Context: Education Stabilization Fund (ESSER) was new grant funding in response to the rising costs associated with COVID-19 coronavirus. The federal government provided ESSER grants to aid schools in operating safely. Recommendation: Establish controls to ensure PI-1086 claims are made with information consistent with the District?s general ledger. Reclassify costs as needed with a journal entry to move costs in or out of a grant project based on costs claimed under the grant. If needed, request that the Wisconsin Department of Public Instruction amend an approved budget to be consistent with actual allowable costs incurred by District. Response: The District will evaluate its controls to ensure grant project codes are being properly utilized and costs claimed under the grant are appropriately coded. Prior to filing PI-1086 grant claims, we will ensure costs submitted are consistent with our general ledger and the approved budget.