Finding Text
2022-001: CASH MANAGEMENT CONDITION: The School District claimed ESSER funds of approximately $1,733,000 in excess of allowable expenditures incurred during the year ended June 30, 2022. CRITERIA: ESSER funds should not be claimed until allowable expenditures have been incurred. All funds drawn down by the School District must be expended within 72 hours of the drawdown. CONTEXT, CAUSE, AND EFFECT: During the School District's financial closeout process, management determined that ESSER funds were claimed in excess of expenditures incurred as a result of an oversight during preparation of the fourth quarterly claim. The oversight was partially a result of turnover in the Director of Finance position. Upon identification of the error, the School District contacted the South Carolina Department of Education ("SCDE") for guidance on resolving the error. The School District issued a check on November 15, 2022 to reimburse the SCDE for amounts improperly claimed. The reimbursement was accrued as a liability due to the State in the School District's financial statements for the year ended June 30, 2022. RECOMMENDATION: We recommend that the School District ensure all reimbursement requests are properly reviewed and compared to supporting documentation prior to submission to the SCDE. RESPONSE: The School District agrees with this finding and will ensure all future reimbursement requests are properly reviewed and approved prior to submission to the SCDE.