Finding 618162 (2022-001)

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Requirement
C
Questioned Costs
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Year
2022
Accepted
2023-05-24
Audit: 38406
Organization: Town of Yarmouth (ME)

AI Summary

  • Core Issue: Delays in disbursing funds for federally funded salaries led to non-compliance with federal guidelines.
  • Impacted Requirements: The School Department must minimize the time between receiving federal funds and making payments, as outlined in the Uniform Guidance.
  • Recommended Follow-Up: Management should ensure all expenses related to federal grants are paid before requesting reimbursements to avoid future issues.

Finding Text

2022-001 ? Cash Management Criteria: Under the Uniform Guidance ?200.305(b) ? Federal Payment, the School Department must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the School Department. Statement of Condition: The School Department received reimbursement for CRF and ESSER expenditures incurred related to retirement contributions on federally funded salaries for which the disbursement to the vendor was not made in a reasonable amount of time. Cause: Federally funded employees under the CRF and ESSER grants were unable to be setup in Munis to accrue the correct retirement contribution. As a result, journal entries were required to accrue the expenditures, which caused delays in payment. Effect: Non-compliance with general provisions of The Uniform Guidance may affect future grants received by the School Department in the future. Recommendation: We recommend that management ensures all items charged to federal grants are expended prior to reimbursement requests.

Categories

Cash Management Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 School Lunch $654,262
84.027 Local Entitlement $366,642
10.553 Breakfast Program $167,569
84.425 Elementary and Secondary School Emergency Relief 3 - Covid $134,848
84.027 Local Entitlement - Arp - Covid $71,607
84.010 Title I, Part A $58,183
10.555 Donated Commodities $48,116
97.044 Assistance to Firefighters Grant $41,958
10.560 Child Nutrition Supply Chain Assistance $32,350
84.367 Title Iia - Supporting Effective Instruction $26,201
10.559 Summer Food Program $23,911
84.425 Elementary and Secondary School Emergency Relief 2 - Covid $18,221
97.036 Disaster Grants - Public Assistance $14,933
84.424 Title IV - Student Support and Academic Enrichment $9,656
16.738 Justice Assistance Grant $5,574
21.027 American Rescue Plan Act - Covid $2,500
10.649 State Pandemic Electronic Benefit Transfer Administrative Cost Grant - Covid $2,456
16.607 Bulletproof Vests $1,690
84.173 Local Entitlement Preschool $256