Finding 963282 (2023-005)

-
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The District reported $171,918 in expenditures that were not actually disbursed by June 30, 2023, violating federal regulations.
  • Impacted Requirements: CFR Title 2, part 200.305(b)(3) requires funds to be disbursed before requesting federal payments.
  • Recommended Follow-Up: Ensure future reports only include paid expenditures and separately report grant obligations and their liquidation.

Finding Text

Criteria or specific requirement (including statutory, regulatory, or other citation) - The Code of Federal Regulations (CFR) Title 2, part 200.305(b)(3) states that non-federal entities must disburse funds for program purposes before requesting payment from the federal awarding agency or pass-through entity. Condition - The District's expenditure report filed for June 30, 2023 included expenditures in the amount of $171,918 that were not disbursed as of June 30, 2023. These amounts were not reported as committed or obligated on the June 30, 2023 expenditure report. Questioned Costs - None. Context - The District received federal reimbursement before expenditures were disbursed. Effect - The June 30, 2023 expenditure report was filed overstating expenditures by $171,918. Cause - Grant expenditures reported on the final June 30, 2023 expenditure report included $171,918 of expenditures that were not paid by the District until the next fiscal year. The expenditures were liquidated within 90 days of June 30, 2023. Recommendation - Grant expenditure reports should only include expenditures that have been paid. Grant obligations should be reported on separately on the expenditure report. The liquidation of the obligations should be reported on subsequent liquidation reports. Managment's Response - There is no disagreement with this finding and management will monitor all future federal reimbursement requests. Committed or obligated expenditures will be reported appropriately. Additionally, the grant expenditures in question were liquidated within 90 days of the fiscal year end.

Categories

Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 - Education Stabilization Fund $462,531
84.010 Title I Grants to Local Educational Agencies $74,201
84.027 Special Education_grants to States $73,485
84.358 Rural Education $18,227
10.553 School Breakfast Program $17,124
84.367 Improving Teacher Quality State Grants $10,970
84.424 Student Support and Academic Enrichment Program $10,430
10.560 Covid-19 - State Administrative Expenses for Child Nutrition $7,092
93.778 Medical Assistance Program $5,116
10.558 Child and Adult Care Food Program $3,509
10.555 National School Lunch Program $3,052
84.173 Special Education_preschool Grants $1,764
10.649 Covid-19 - Pandemic Ebt Administrative Costs $628