Finding Text
Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023
U.S. Department of Education
Pass-Through Entity - Pennsylvania Department of Education
Criteria: The Department of Education, passed through entity Pennsylvania Department of Education states “Per Compliance Supplement (Part 4 84.425-Education Stabilization Funds) Governors, SEAs, and subrecipients must receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment: For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the Governor (or mayor of the District of Columbia) or SEA must receive prior approval from ED.”
Condition: The Center did not receive proper approval for the purchase of capital equipment purchased with grant funds in the current year.
Cause and Effect: Because the Center did not receive proper approval for purchases of capital equipment, the Center is risking the allowability of the costs funded by the grant funds passed through by the Pennsylvania Department of Education.
Identification of Repeat Finding: No.
Questioned Costs: None
Recommendation: Procedures should be established to ensure that the Center does not purchase equipment outside the standards set by the grant agreement and compliance supplement.
Management Response: The Center acknowledges this finding, and has since revised its permission process to include the requisite steps as required by the US DoE (ED) Uniform Grant Guidance (UGG) in its subsequent purchases with Federal Funds. It is also noted that most if not all of these purchases were made after the receipt of delayed guidance from PA Department of Education’s Federal Programs Office. When alerted to the guidance, the Center implemented the proper procedures.