Finding 612827 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-01-05
Audit: 31280
Organization: Canton Area School District (PA)

AI Summary

  • Core Issue: Internal controls for the Single Funding Certificate were ineffective, leading to one employee's certificate not being completed.
  • Impacted Requirements: The District failed to comply with the requirement for bi-annual signatures on Single Funding Certificates for federal funding.
  • Recommended Follow-Up: Review and enhance internal controls; implement a bi-annual reminder system to ensure all required certificates are completed and signed.

Finding Text

2022-001 - Education Stabilization Fund - 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 Single Funding Certificate were not operating properly. As a result, for salaries and /or benefits charged to the grant, Single Funding Certificates were not completed for one employee out of one tested. Criteria: Proper functioning internal controls would result in the District having all required Single Funding Certificates completed and obtained contemporaneously. Cause: The system of controls over the Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund did not operate properly to detect that a signed Single Funding Certificate was not on file for the employee selected for testing. The controls require District personnel to sign a Single Funding Certificate bi-annually if wages and benefits are paid with federal funding. This requirement was overlooked and therefore; a signed certificate was not on file for one employee out of one tested. Effect: The District was not in compliance with the requirement of needing the Single Funding Certificates signed bi-annually for the Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund. Recommendation: The District's internal control system over reporting requirements related to the Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund should be reviewed and modified to prevent future errors. The District should review Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund files to ensure all required Single Funding Certificates are completed. Views of Responsible Officials and Planned Corrective Actions: A control has been added whereby a calendar reminder has been set, reoccurring bi-annually, which will initiate a process that ensures that the certificate forms for all individuals charged to the grant will be reviewed, issued, signed and accounted for, to ensure a Single Funding Certificate was obtained.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36385 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 - Elementary and Secondary School Emergency Relief Fund $1.20M
84.425 Education Stabilization Fund $636,738
84.010 Title I Grants to Local Educational Agencies $326,290
10.553 School Breakfast Program $152,397
84.425 Covid-19 - Arp Elementary and Secondary School Emergency Relief Fund - 7% Learning Loss $104,782
10.555 Covid-19 - Snp Emergency Operating Costs $69,290
84.367 Improving Teacher Quality State Grants $41,163
10.555 National School Lunch Program $39,796
84.425 Covid-19 - Arp Elementary and Secondary School Emergency Relief Fund - 2021 $36,525
84.424 Student Support and Academic Enrichment Program $25,594
10.555 Covid-19 - Supply Chain Assistance $21,264
84.358 Rural Education $9,535
84.027 Special Education_grants to States $3,500
84.173 Special Education_preschool Grants $1,624
10.649 Covid-19 - Pandemic Ebt Administrative Costs $614