Finding 612565 (2022-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2022-10-24

AI Summary

  • Core Issue: Expenditures were incorrectly charged to federal grants, violating compliance with 2 CFR Section 200.405.
  • Impacted Requirements: The District lacks adequate internal controls to ensure that costs are allowable and correctly assigned to each grant.
  • Recommended Follow-Up: Implement procedures for thorough review of expenditures to confirm they are allowable and correctly allocated to prevent unallowable costs.

Finding Text

Education Stabilization Funds Information on Federal Program: U.S Department of Education CARES Act (Governor?s Emergency Education Relief Fund and Elementary and Secondary School Emergency Relief Fund Assistance Listing No. 84.425D and 84.425C), CRRSA Act (Elementary and Secondary School Emergency Relief Fund Assistance Listing No. 84.425D) and American Rescue Plan (Elementary and Secondary School Emergency Relief Fund and Homeless Youth and Children Assistance Listing No. 84.425U and 84.425W) passed through the New York State Education Department. Criteria: CFR Section 200.405 stipulates that a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. Statement of Condition: During our review of expenditures charged to the program, it was noted that certain expenditures were charged to the individual grants within the program incorrectly, were charged not in accordance with the individual grant budgets, or were not eligible expenditures of the grants. Statement of Cause: The District did not have appropriate internal controls over compliance to review expenditures claimed under each grant within the program in accordance with 2 CFR Section 200.405. Statement of Effect: The District is not in compliance with 2 CFR Section 200.405. The District does not have an adequate review of expenditures charged to the major program, as a result, unallowable costs could be charged to the program. Questioned Cost: $185,324 ? see perspective information. Repeat Finding: Yes Recommendation: We recommend that the District implement procedures to review expenditures claimed under the program, and within each grant under the program, are allowable, charged to the correct grant, and are not already claimed. Views of the Responsible Officials and Planned Corrective Actions: Cathy Meher, the district treasurer, will review this with the responsible staff and will be more cognizant of the accounting procedures and review and ensure that accounts are accurately stated. This will begin immediately.Perspective Information: As part of testing of compliance over allowable costs, a selection of expenditures charged to the major program was selected for testing of compliance. The amount noted as questioned costs was included based on costs of $90,079 charged to the major program that were general expenditures of the District and should not have been charged to the major program. The remaining $95,155 noted as questioned costs were appropriately included in the program, but Incorrectly charged to the individual grants within the program. An adjustment was made to correct the errors.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 36119 2022-003
    Material Weakness Repeat
  • 36120 2022-003
    Material Weakness Repeat
  • 36121 2022-003
    Material Weakness Repeat
  • 36122 2022-003
    Material Weakness Repeat
  • 36123 2022-003
    Material Weakness Repeat
  • 36124 2022-004
    Significant Deficiency Repeat
  • 36125 2022-004
    Significant Deficiency Repeat
  • 36126 2022-004
    Significant Deficiency Repeat
  • 36127 2022-004
    Significant Deficiency Repeat
  • 36128 2022-004
    Significant Deficiency Repeat
  • 612561 2022-003
    Material Weakness Repeat
  • 612562 2022-003
    Material Weakness Repeat
  • 612563 2022-003
    Material Weakness Repeat
  • 612564 2022-003
    Material Weakness Repeat
  • 612566 2022-004
    Significant Deficiency Repeat
  • 612567 2022-004
    Significant Deficiency Repeat
  • 612568 2022-004
    Significant Deficiency Repeat
  • 612569 2022-004
    Significant Deficiency Repeat
  • 612570 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $409,966
84.367 Improving Teacher Quality State Grants $194,736
84.010 Title I Grants to Local Educational Agencies $172,978
10.555 National School Lunch Program $153,557
84.424 Student Support and Academic Enrichment Program $110,773
10.559 Summer Food Service Program for Children $48,301
84.173 Special Education_preschool Grants $47,721
84.027 Special Education_grants to States $23,851
84.425 Education Stabilization Fund $432
84.358 Rural Education $90