ERIE COUNTY TECHNICAL SCHOOLLocal Government

FINDING 2022-004: ESSER - REPORTING FINDING TYPE: Federal Awards ? Significant Deficiency/Noncompliance CRITERIA: Per Pennsylvania Department of Education guidance on ESSER grants, schools are required to file the reconciliation of cash on hand report for the quarter subsequent to when funds are first received. The Uniform Guidance states that nonfederal entities must follow state reporting guidelines. CONDITION: The auditor, while testing compliance with reporting for ARP ESSER and GEER awards, noted several missing cash on hand reports. Upon further investigation, the auditor noted that several of the quarterly cash on hand reports had not been filed. CAUSE: Turnover at the accounting position and higher than normal federal awards at the School led to confusion on reporting requirements. EFFECT: The School was not in compliance with Pennsylvania Department of Education reporting requirements. Cash reimbursements for eligible expenses were likely significantly delayed in their receipt from the Pennsylvania Department of Education. QUESTIONED COST: None RECOMMENDATION: Management should maintain an up-to-date listing of all federal grants and thoroughly understand reporting requirements and conditions of each grant. Management should promptly request reimbursement for grant eligible expenses and review year-end accruals to ensure grant expenses are properly reported and revenues are recognized in the proper period. Management should also maintain a folder for each grant with contemporaneous documentation of required grant reporting and correspondence with grantors. VIEWS OF RESPONSIBLE OFFICIALS: Management agrees with the finding.