Finding Text
2022-002 ALLOWABLE COSTS - SIGNIFICANT DEFICIENCY Federal Program Education Stabilization Fund ALN 84.425D - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER II), contract #200-210168 ALN 84.425U - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER III), contract #223-210168 Criteria In accordance with Uniform Guidance costs principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged 100% of the employer paid retirement cost to the grant, however, the Pennsylvania Department of Education reimburses the District 50% of those costs annually. As a result, the District is only permitted to charge 50% of retirement costs to the grants. Cause The District improperly charged twice the allowable retirement costs to the grant to the general ledger funding source code for the grants. Review procedures in place did not identify that only 50% of the retirement costs charged were allowable. Effect Unallowable costs were charged to the grants. The District subsequently identified allowable costs in this amount to charge to the grants to replace these unallowable costs. Questions Costs ALN 84.425D, contract # 200-210168 - $36,465 ALN 84.425U, contract # 223-210168 - $3,736 Context 100% of the retirement costs for the salaries charged to the grants totaled $80,402. 50% of this was reimbursed by the Pennsylvania Department of Education and therefore $40,201 of the costs charged to the grants were unallowable. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream applying subsidy stream payments first. There should also be a procedure in place to have a person independent of report preparation review cost report and underlying expenditures. Management Response See corrective action plan included in this report package.