Finding Text
Finding Number: 2023-001
Federal Program: COVID-19 ARP Elementary and Secondary School Emergency Relief
Federal Award Identification Number and Year: N/A, 2023
Assistance Listing Number (ALN): 84.425U
Federal Awarding Agency: U.S. Department of Education
Compliance Requirement: Reporting – Final Expenditure Report
Pass-through Entity: Ohio Department of Education
Repeat Finding: No
Significant Deficiency and Noncompliance – Reporting of Final Expenditure Report
Criteria: 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.302(b)(2) which states, in part, the financial management system of each non-Federal entity must provide for the accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in § 200.328. 2 C.F.R. § 200.328 states, in part, this information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting.
2 C.F.R. § 200.344(a) states, in part, a subrecipient must submit to the pass-through entity, no later than 90 calendar days (or an earlier date as agreed upon by the pass-through entity and subrecipient) after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. Ohio Department of Education Grants Manual requires a final expenditure report (FER) to be submitted to show how grant funds were expended during the grant period for each project immediately after all financial obligations have been liquidated. FERs are to be submitted by September 30.
Condition: The Academy did not start and submit the FER until October 3, 2022, three days after the deadline of September 30, 2022.
Questioned Costs: None.
Identification of How Questioned Costs Were Computed: N/A
Context: Auditor reviewed the FER via CCIP and noted the Academy did not start and submit the FER until October 3, 2022, which was three days after the deadline of September 30, 2022.
Cause and Effect: The Academy did not have procedures in place to review and submit the Final Expenditure Report timely. As a result, the Academy filed the Final Expenditure Report after the required due date.
Recommendation: We recommend that the Academy implement a process to ensure that the Final Expenditure Report is filed by the required due date.
Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.