Finding Text
Item 2022-002: Identification of the Federal Programs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA), Assistance Listing Number: 84.425 ? ESSER. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A, Assistance Listing Number: 84.196 ? Title X, Part C, Assistance Listing Number: 84.365 ? Title III, Part A, Assistance Listing Number: 84.367 ? Title II, Part A, Assistance Listing Number: 84.424 ? Title IV, Part A, Federal Agency: US Department of Education, Pass-Through Entity: Texas Education Agency Compliance Requirements: Cash Management and Reporting. Type of Finding: Noncompliance and Material Weakness. Criteria: Cash Management ? Management must establish procedures to minimize the time elapsing between cash drawdowns from TEA and disbursements for program purposes in accordance with 2 CFR section 200.305(b) for reimbursement grants. Reporting ? Management is responsible for establishing procedures to report accurate program outlays when requesting drawdowns from TEA in accordance with TEA?s established federal program guidelines. Condition and Context: Management?s request for federal drawdowns were more than expended by the entity. Cause: Management inadvertently requested reimbursement for more federal funds than expended. This occurred because the incorrect general ledger expenditure reports were used to populate the expenditures for federal grant drawdowns. Effect or Potential Effect: As a result, an error in reporting occurred in the amounts mentioned below in the questioned costs section. Additionally, these amounts are reported as due to other governments in the financial statements. Questioned Costs: Major Federal Programs: Assistance Listing Numbers: 84.027 and 84.173 ? Special Education Cluster (IDEA) - $294,620 Assistance Listing Number: 84.425 ? ESSER - $12,594. Nonmajor Federal Programs: Assistance Listing Number: 84.010 ? Title I, Part A - $252,018, Assistance Listing Number: 84.196 ? Title X, Part C - $7,712, Assistance Listing Number: 84.365 ? Title III, Part A - $20,430, Assistance Listing Number: 84.367 ? Title II, Part A - $87,059, Assistance Listing Number: 84.424 ? Title IV, Part A - $17,803. Recommendation: Management should implement procedures to ensure accurate reporting of expenditures for cash drawdowns. Each cash drawdown should be reconciled to expenditures reported on the general ledger for the applicable program and reviewed by another individual not a part of the preparation of the cash drawdown. Responsible Official?s Response: The District agrees with this finding and has taken corrective action to ensure that established procedures are followed, and appropriate information is used for cash drawdowns.