Finding Text
Part III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SECTION
Federal Agency - United States Department of Education
Federal Programs - Title I Grants to Local Educational Agencies - (84.010), COVID-19 Education Stabilization Fund - (84.425C/84.425D/84.425U/84.425W), Supporting Effective Instruction State Grants (84.367)
Federal Award Years - 2021, 2022, 2023
State Agency - New York State Department of Education
Reference - 2023-004 Payroll Reconciliation - Material Weakness
Criteria - Proper functioning internal controls would result in the District having control procedures in place for grant management.
Condition - The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the Federal expenditures that were claimed as part of the Federal programs.
Cause - There were no controls in place to allow the proper coding of payroll expenditures to reflect the Federal funds that were incurred and therefore a complete population of payroll expenditures was unable to be determined.
Effect of Condition - The District was unable to provide a complete listing of Federal payroll expenditures generated by their general ledger system to serve as the complete population to audit the Federal payroll expenditures being claimed under the the three funds above.
Recommendation - The District's internal control system over grant management related to the Federal Awards should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation.
Questioned Costs - None.
Perspective - It is likely that this issue is pervasive to other Federal programs as all three Federal programs tested had the issue.
View of Responsible Officials and Planned Corrective Actions - (a) Comments on the finding and recommendation: The District agrees with the finding. The District also agrees with the recommendation. See below for actions taken.
(b) Actions Taken: Management will create internal controls over grant management to allow for proper coding of expenditures in order to have accurate report generation.
(c) Anticipated Completion Date: Management anticipates this finding will be resolved by June 30, 2024.