Logan County School District

2022-001 COVID-19 Education Stabilization Fund ? Assistance Listing No. 84.425; Grant period ? Year ended June 30, 2022 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. The District?s processes over approving allowable costs could be enhanced as costs were charged to the Education Stabilization Fund grant that were not allowable in accordance with the Kentucky Department of Education?s ESSER I, ESSER II, and ARP ESSER Funding Matrix. Cause: Certain internal controls were not in place to prevent unallowable costs from being charged to the grant. Effect: The cost of the assistance may be disallowed. Questioned Costs: $20,552 Context: A sample of 60 checks totaling $558,621 were selected for audit from a population of 520 checks totaling $1,108,883 that were transferred to the Education Stabilization Fund grant via a journal entry. The test found six checks that were not in compliance with questioned costs totaling $20,552. Our sample was a statistically valid sample. Recommendation: The District should verify the allowability of costs prior to being transferred or charged to the grant. Views of Responsible Officials and Planned Corrective Actions: The District concurs with the finding, see corrective action plan.

IN REGARDS TO COVID-19 EDUCATION STABILIZATION FUND -- ASSISTANCE LISTING NO. 84.425; GRANT PERIOD -- YEAR ENDED JUNE 30, 2022 THE DISTRICT WILL PUT MEASURES IN PLACE TO ENSURE THAT ALLOWABLE COSTS ARE CHARGED TO THE GRANT. THE ANTICIPATED COMPLETION DATE OF THESE ACTIONS IS NOVEMBER 14, 2022 WITH KARLA PADDOCK THE RESPONSIBILE PERSON FOR IMPLEMENTATION.