EIN: 236005484
UEI: PN2LWP8HVWQ8
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 20, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 20, 2025, which was (244 days ago).
What is a management decision? →Title I, Title II, and Title IV, AL #84.010, #84.367, and #84.424, 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, and Title IV Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024. Additionally, the Final Expenditure Report for Title I, Title II, and Title IV were 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 the 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: Yes, #2023-002 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. Management Response: See Corrective Action Plan.
The finding from Section III – 2024-005 Reporting Requirements Condition: The District did not file the Title 1, Title 2, and Title 4 Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024.Additionally, the Final Expenditure Reports for Title 1, Title 2, and Title 4 were not filed by the required date. Views of Responsible Officials and Planned Corrective Actions: Southern Fulton School District has hired a Certified Public Accountant (CPA) as the Chief Financial Officer (CFO) as of 4/1/2025 who will be responsible for ensuring all Title reports are filed timely and by the deadlines.
2023-002
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: Yes, #2023-004. Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan.
The finding from Section III – 2024-006 General Ledger System Condition: The District did not track the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures. Views of Responsible Officials and Planned Corrective Actions: Southern Fulton School District has hired a Certified Public Accountant (CPA) as the Chief Financial Officer (CFO) as of 4/1/2025 who will be responsible for ensuring that the general ledger system is utilized to track all federal expenditures.
2023-004
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 1, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 1, 2025, which was (538 days ago).
What is a management decision? →Finding 2023-002 – Cash Management and Reporting 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 Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended, but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2022 and March 2023 for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 10-day requirement. The District did not file the required quarterly reports for June 2023 for Grant #200-210405, #223-210405, and #225-210405. Also, the District did not file the required final expenditure reports for Grant #200-210405, #223-210405, and #225-210405 in a timely manner within the 30-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports and the final expenditure reports timely. By not filing the required reports in a timely manner, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: No Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 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. Management Response: See Corrective Action Plan on pages 93-95.
The finding from Section III – Federal Awards Findings and Questioned Costs Finding 2023-002 – Cash Management and Reporting Condition: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires annual final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after the funds are expended but no later than 30 days after the ending of the date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Views of Responsible Officials and Planned Corrective Actions: The District Business Manager will work directly with the District Superintendent and the Federal Programs Coordinator, as well as any additional parties involved in the process of the Federal Grants filing the expenditure reports quarterly and filing of the final expenditure reports. Procedures will include creating reminders on the Business Manager’s calendars that include the due dates each quarter, reporting the appropriate expenditures in the accounting software, and creating a separate report listing the expenditures for that quarter and the remaining funds for future quarters. Account numbers that accurately reflect and represent the expenditures for related funding sources will be created and reviewed for necessary changes as the projects progress.
Finding 2023-003 – Allowable Costs/Cost Principles – Time and Effort Certifications Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023 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: Time and effort documentation was not prepared for certain employees. There were five employees included in the sample with no time and effort certifications maintained to support the portion of time and effort dedicated to the ARP ESSER program. Cause and Effect: The District did not realize that all employees charged to the Federal award needed to have a time certification prepared. 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: Salary and related benefits of employees charged to the program including related social security and retirement and insurance = $178,878. 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 on pages 93-95.
The finding from Section III – Allowable Costs/Cost Principles Finding 2023-003 – Time and Effort Certifications Condition: 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. Views of Responsible Officials and Planned Corrective Actions: The District Business Manager will work directly with the Federal Programs Coordinator, as well as any additional parties involved in the process of funding positions utilizing Federal Grants, to ensure that the resources are provided for proper training and reporting under the guidance provided. This will ensure that non-allowable costs are not charged to federal codes in the accounting system and assure that any federally funded employees are certified regularly based on the guidelines. In addition, controls will be established and implemented to verify compliance and appropriate approvals on each level within the administration.
Finding 2023-004 Activities Allowed or Unallowed - General Ledger System Education Stabilization Fund - AL #84.425, Year Ended June 30, 2023 U.S. Department of Education Pass-Through Entity - Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The District was not tracking the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process, and was not using the correct expenditures to claim as eligible expenditures. Cause and Effect: The District was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: No Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan on pages 93-95.
The finding from Section III – Activities Allowed or Unallowed Finding 2023-004 – General Ledger System Condition: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District Business Manager is aware and responsible for appropriate reporting of expenditures related to federal funding. During the course of the 2022-2023 school year, appropriate processes and classifying of expenditures were not completed as they should have been, resulting in numerous after-closing journal entries to correct the issues. Moving forward, with the assistance and guidance of federal and state guidelines, all expenditures will be budgeted for within the grant application and reconciled with the district’s general ledger, to ensure proper allocations. Additionally, reporting that is to be done quarterly will also verify the placement of expenditures accurately. The person responsible for the corrective action plan will be the Business Manager and the anticipated completion date will be June 30, 2024, but no later than June 30, 2025 due to the delays that occurred in the completion of the audit ending June 30, 2023.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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