Finding Text
Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Repeat Finding 2022-010)
U.S. Department of Education / Passed-through Opportunity 180
Federal Assistance Listing Number 84.282B– Charter Schools (CSP) Award Number S282A200009-20A, Subgrantee Number CSP-2021-08655, Award Date 4/1/21-8/31/23
Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance.
Condition – Eight expenditures tested did not have evidence of review and approval.
Questioned Costs - None
Context/Sampling – A non-statistical sample of eight expenditures out of 50 expenditures was selected for testing. We also tested the corresponding request for reimbursement of allowable cost submission for each expenditure tested.
Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented.
Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School.
Recommendation – We recommend that the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance.
Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure that all principal approvals are documented in writing or electronic approval in the system which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.