GETTYSBURG AREA SCHOOL DISTRICT

Finding 2024-001: Reporting Requirements Title I, Title II, Title III, Title IV, ARP ESSER, ARP ESSER 7%, ARP ESSER Homeless Children and Youth, and ARP ESSER 2.5% - AL #84.010, 84.367, 84.365, 84.424, 84.425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity - Pennsylvania Department of Education Criteria: The Pennsylvania Department of Education (PDE) requires the Reconciliation of Cash on Hand Quarterly Report for any program for which they received monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October, for any period in which payments were received. Additionally, PDE also requires the Final Expenditure Report to be filed within 30 days after funds are expended but no later than 30 days after the ending date of the project. Since the reporting requirements had the same controls the criteria and finding were combined. Condition: The District did not file the Title I, Title II, Title III, Title IV, ARP ESSER, ARP ESSER 7%, ARP ESSER Homeless Children and Youth, and ARP ESSER 2.5% Reconciliation of Cash on Hand Quarterly Reports for September 2023 and March 2024 in an timely manner within the 10-day requirement. The District did not file the Title I, Title II, Title III, Title IV, ARP ESSER, ARP ESSER 7%, ARP ESSER Homeless Children and Youth, and ARP ESSER 2.5% Reconciliation of Cash on Hand Quarterly Reports for December 2023 and June 2024. Additionally, the Final Expenditure Report for the ESSER II was not filed by the required due date. The reports noted here were not related to a single audit requirement and thus were reported as a financial statement internal control finding. Cause and Effect: District personnel did not file various quarterly and final expenditure reports by the required due dates. The District is potentially risking a withholding of federal funds by PDE when required reports are not filed. Identification of Repeat Finding: No Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all Reconciliation of Cash on Hand Quarterly Reports within 10 working days of quarter ending and Final Expenditure Reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Views of Responsible Officials: See Corrective Action Plan.

Finding 2024-002 - Allowable Costs/Cost Principles - Time and Effort Certifications Education Stabilization Fund - AL #84.425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity - Pennsylvania Department of Education Criteria: Uniform Guidance requires an employee whose salary and wages are supported, in whole or in part, with Federal funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee’s time and effort devoted to that program. If an employee works solely on a single Federal award or cost objective, charges for the employee’s salary and wages must be supported by periodic certifications that the employee worked solely on that program or cost objective for the period covered by the certification. Those certifications must: Be prepared at least semiannually. Signed by the employee or supervisory official having firsthand knowledge of the work performed by the employee. Condition: A sample of payroll transactions were selected for testing that included the various ESSER programs. There were two teachers that were supported in whole with Federal funds included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the program. Cause and Effect: The District was unable to provide the required documentation. The District receives federal funding based on allowable costs charged to the program. If documentation is not maintained to support the allowability of costs charged to the program, the District may be utilizing the funds for expenses which are unallowable. This may result in the return of federal funds to the funding agency for the unallowable costs, if deemed appropriate. Identification of Repeat Finding: No Questioned Costs: No Recommendation: We recommend that controls be reviewed and revised to ensure that time and effort distribution records are prepared for staff who are charged to federal programs. These records should also be reviewed, approved, and maintained by administrative personnel. Management Response: See Corrective Action Plan.