Hicksville Union Free School DistrictLocal Government

2021-001. Allowable Costs/Cost Principles Department of Education, Passed-through New York State, Department of Education Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund Assistance Listing (CFDA) No. 84.425D Condition: Upon review of the District?s FS-10F filing, it was determined that a final expenditure reported for grant funds reimbursed was based upon an amount originally encumbered for a budgeted cost in the grant, and not for an actual expenditure incurred and recorded by the District in the general ledger. Criteria: The District is required to file certain grant documents, including final grant expenditure reports (FS-10F). This FS-10F should agree to the actual expenditures recorded in the District?s general ledger for the grant period. Cause: While preparing the FS-10F, the District incorrectly recorded an amount encumbered on a purchase order in their financial software system, instead of the actual expenditures incurred for items purchased. Effect: This resulted in the District submitting an incorrect amount of reimbursement to the New York Stated Department of Education for program expenditures on their FS-10F for the Elementary and Secondary School Emergency (ESSER) Fund grant in the amount of $2,532. Recommendation: The District should contact the New York State Education Department to determine the appropriate course of action to resolve this overpayment received, which should include filing a revised FS-10F for the grant, as the 90-day window for adjusting the filings has not closed. Additionally, the District should review its procedures for submitting a final FS-10F report to New York State Education Department to ensure that is it properly reviewed prior to submission, and accurately reflects the final program expenditures being requested for reimbursement. Management?s Response: The District?s Assistant Superintendent for Business and Director of Business have contacted the New York State Education Department to determine the appropriate course of action which has led to the subsequent filing of a revised FS-10F for the grant. Additionally, the District will review its procedures to ensure that a reconciliation of actual expenditures incurred agrees to the total FS-10F expenditures, prior to final submission for reimbursement from the New York State Education Department.

2021-002. Matching, Level of Effort, Earmarking Special Education Cluster Special Education Grants to States Assistance Listing (CFDA) No. 84.027 Special Education Preschool Grants Assistance Listing (CFDA) No. 84.173 Condition: Upon review of the District?s maintenance-of-effort calculation, it was determined that transportation expenditures were duplicated as both contractual and transportation cost. Criteria: The District is required to prepare a maintenance-of-effort calculation to meet both the eligibility and compliance standards to ensure that federal funds received under the Special Education Cluster are not being used to supplant local expenditures incurred to educate special education students below the level of expenditures from the previous year. The information used to prepare these calculations should be based on budgeted and actual expenditures, to meet the eligibility and compliance standards, respectively. Cause: While preparing the maintenance-of-effort calculation to meet the compliance standard, the District incorrectly reported actual transportation expenditures of $97,931 as both contractual and transportation costs. Effect: This resulted in the District submitting an incorrect maintenance-of-effort calculation to the New York State Education Department. The duplication of expenditures in the calculation did not affect the outcome as the District still maintained the appropriate level of effort to meet the requirement, Questioned Costs: N/A. Identification of a Repeat Finding: This is not a repeat finding from a previous audit. Recommendation: The District should submit a revised maintenance-of-effort calculation to the New York State Education Department. Additionally, the District should review its procedures for the completion and submission of their maintenance-of-effort calculations to New York State Education Department to ensure that it has been properly reviewed by another person prior to submission, and that it accurately reflects the actual expenditures incurred by local effort. Management?s Response: Management agrees with the finding. The District?s Assistant Superintendent for Business and Director of Business will contact the New York State Education Department to determine the appropriate course for submitting a revised maintenance-of-effort calculation. Additionally, the District will review its procedures to ensure that a reconciliation of actual expenditures incurred agrees to the expenditures reported in the calculation, and that the calculation is reviewed by another person prior to submission to the New York State Education Department.