Finding 947096 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-02-27

AI Summary

  • Core Issue: Federal programs were charged for benefits that were already reimbursed by a state subsidy, leading to potential funding duplication.
  • Impacted Requirements: Compliance with Title 2 CFR Section 200.431(c) regarding proper allocation of fringe benefits to federal awards.
  • Recommended Follow-Up: Ensure PSERS contributions charged to federal awards are adjusted for state reimbursements to avoid questioned costs.

Finding Text

COVID-19 Education Stabilization Fund - Assistance Listing 84.425D and 84.425U passed through the Pennsylvania Department of Education; Title I - Grants to Local Educational Agencies - Assistance Listing 84.010 passed through the Pennsylvania Department of Education; Grant Period - Year Ended June 30, 2023. Criteria: In accordance with Title 2 CFR Section 200.431(c) of the Uniform Guidance, fringe benefits must be allocated to federal awards and all other activities in a manner consistent with the pattern of benefits attributable to the employees whose salaries and wages are chargeable to such federal awards and other activities. Condition: Benefits charged to federal programs included Public School Employees’ Retirement System (PSERS) employer contribution expenditures that were reimbursed by a state subsidy. Cause: The system generated payroll report that identifies federally funded staff did not properly reduce federal allocations for amounts reimbursed by the state subsidy. Effect: Failure to properly deduct the PSERS reimbursement portion allocated to federal awards is a duplication of benefits which can result in a loss of funding. Questioned Costs: Total known questioned costs of $72,697 as indicated below: • COVID-19 Education Stabilization Fund - Assistance Listing 84.425D - $8,294 • COVID-19 Education Stabilization Fund - Assistance Listing 84.425U - $34,485 • Title I - Grants to Local Educational Agencies - Assistance Listing 84.010 - $29,918 Perspective Information: Total PSERS employer contribution expenditures charged to these federal awards were $144,098. The state subsidy reimbursed the District for approximately 50 percent of these expenditures for a total of $72,697. Identification of Repeat Findings: Not applicable. Recommendation: The District should ensure that PSERS employer contribution expenditures charged to federal awards are reduced for amounts reimbursed by other funding sources. Views of Responsible Officials: Management agrees with the finding. Planned Corrective Action: See District’s corrective action plan.

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 370652 2023-001
    Significant Deficiency
  • 370653 2023-001
    Significant Deficiency
  • 370654 2023-001
    Significant Deficiency
  • 370655 2023-001
    Significant Deficiency
  • 947094 2023-001
    Significant Deficiency
  • 947095 2023-001
    Significant Deficiency
  • 947097 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $256,116
10.553 School Breakfast Program $179,975
10.555 National School Lunch Program $126,057
84.425 Education Stabilization Fund $79,684
84.027 Special Education_grants to States $65,830
84.367 Improving Teacher Quality State Grants $46,935
84.424 Student Support and Academic Enrichment Program $22,000
84.041 Impact Aid $8,193
84.173 Special Education_preschool Grants $2,926
93.778 Medical Assistance Program $1,347
10.649 Pandemic Ebt Administrative Costs $628