EIN: 660491518
UEI: DXENVKMN4C34
Audited by: Ernst & Young LLP
Cognizant agency: 84 [Department of Education]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 19, 2026. 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 July 19, 2026 (46 days ago).
What is a management decision? →GDOE functions both as State Educational Agency (SEA) and LEA. As a state agency, it is required to fulfil the above criteria. As of December 4, 2025, the annual notification for School Year (SY) 2023-2024 and SY 2024-2025 was not published on GDOE’s website. Specifically, the lists of eligible and near-eligible LEAs and schools was not published on GDOE’s website. Furthermore, documentation of CEP approval was not provided. Cause: GDOE did not enforce controls over compliance with the applicable eligibility requirements relative to annual notifications and publications and retaining documentation of CEP approval. Effect: GDOE is in noncompliance with applicable eligibility requirements. No questioned cost is presented as non-compliance is related to a disclosure requirement and is not specific to a particular cost. Identified as a Repeat Finding: 2023-004 Recommendation: GDOE should establish and implement internal controls over compliance with applicable eligibility requirements. Responsible personnel should prepare and publish required notifications and retain documentation of CEP approval.
Show full finding ▾Hide full finding ▴Finding No.: 2024-003 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Eligibility Questioned Costs: $0 Criteria: In accordance with the National School Lunch Act, state agencies are required to annually notify local educational agencies (LEAs) of district-wide eligibility for the community eligibility provision (CEP). By May 1 of each year, state agencies must publish lists of eligible and near- eligible LEAs and schools on their state agency websites. Condition: GDOE functions both as State Educational Agency (SEA) and LEA. As a state agency, it is required to fulfil the above criteria. As of December 4, 2025, the annual notification for School Year (SY) 2023-2024 and SY 2024-2025 was not published on GDOE’s website. Specifically, the lists of eligible and near-eligible LEAs and schools was not published on GDOE’s website. Furthermore, documentation of CEP approval was not provided. Cause: GDOE did not enforce controls over compliance with the applicable eligibility requirements relative to annual notifications and publications and retaining documentation of CEP approval. Effect: GDOE is in noncompliance with applicable eligibility requirements. No questioned cost is presented as non-compliance is related to a disclosure requirement and is not specific to a particular cost. Identified as a Repeat Finding: 2023-004 Recommendation: GDOE should establish and implement internal controls over compliance with applicable eligibility requirements. Responsible personnel should prepare and publish required notifications and retain documentation of CEP approval.
Views of Auditee and Corrective Actions: GDOE agrees with the finding. Plan of action and completion date: The Food and Nutrition Services Management Division (FNSMD) will implement an internal calendar reminder to ensure timely notification to School Districts and the annual upload of district-wide eligibility information for the Community Eligibility Provision (CEP) to the FNSMD and GDOE websites. Additionally, FNSMD will implement an internal process to conduct the Direct Certification Matching activity to determine student eligibility for free school meals (Lunch/Breakfast). This process will include matching student data with lists from the Department of Public Health & Social Services (DPHSS) for SNAP (Food Stamps), TANF, FDPIR, Medicaid, Foster Care, Homelessness, or Migrant status. All Direct Certification Matching activities will be completed by April 1st of each year. Plan to monitor and responsible officials: The FNSMD Administrator, Anthony S. Monforte, and FNSMD Program Coordinator, Franklin J. Cruz, will be responsible for implementation and ongoing execution of corrective actions. Corrective actions will be implemented by March 31, 2026.
2023-004
Finding No.: 2024-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Criteria: The School Food Authority (SFA) must submit SF-425 Federal Financial Report quarterly related to Supply Chain Assistance fund. Further, financial reports should be traceable to accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Conditions: 1. The following quarterly SF-425 for Supply Chain Assistance fund were not prepared and submitted during fiscal year 2024: Award # Quarter Ended 7GU320GU3 December 31, 2023 7GU320GU3 March 31, 2024 7GU320GU3 June 30, 2024 237GUGU3N8903 September 30, 2023 237GUGU3N8903 December 31, 2023 237GUGU3N8903 March 31, 2024 237GUGU3N8903 June 30, 2024 Finding No.: 2024-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Conditions, continued: 2. We noted variances between the expenditures reported in Financial Status Report FNS 777 against the underlying accounting records as summarized below: STATUS OF FUNDS Reported during FY24 QTR 3 - (04/01/24 - 06/30/24) Total per Expenditure Details Over (Under) Reported variance PROGRAMS/FUNCTIONS/ACTIVITIES Net outlays previously reported $7,947,328 $9,014,236 ($1,066,908) Total outlays this report period 1,434,331 2,395,557 ( 961,226) Less: Program income credits - - - Net outlays this report period (Line b minus line c) 1,434,331 2,395,557 ( 961,226) Net outlays to date (Line a plus line d) 9,381,659 11,409,793 (2,028,134) Less: Non-Federal Share of outlays - - - Total Federal share of outlays (Line e minus line f) 9,381,659 11,409,793 (2,028,134) Total unliquidated obligations 3,811,238 5,355,508 (1,544,270) Less: Non-Federal Share of unliquidated obligations shown on line h - - - Federal share of unliquidated obligations 3,811,238 5,355,508 (1,544,270) Total Federal share of outlays and unliquidated obligations 13,192,897 16,765,301 (3,572,404) Total cumulative amount of Federal fund authorized 12,239,790 12,239,790 - Unobligated balance of Federal funds ($ 953,107) ($ 4,525,511) $ 3,572,404 3. Subawards are not reported in FSRS, as follows: Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 2 2 $609,093 $609,093 Finding No.: 2024-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Cause: GDOE lacks controls over compliance with applicable reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the non-compliance was related to reporting requirements. Identified as a Repeat Finding: 2023-006 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable reporting requirements relative to submitting quarterly SF-425, accurate reporting of FNS-777 and reporting subawards in FSRS.
Show full finding ▾Hide full finding ▴Finding No.: 2024-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Criteria: The School Food Authority (SFA) must submit SF-425 Federal Financial Report quarterly related to Supply Chain Assistance fund. Further, financial reports should be traceable to accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Conditions: 1. The following quarterly SF-425 for Supply Chain Assistance fund were not prepared and submitted during fiscal year 2024: Award # Quarter Ended 7GU320GU3 December 31, 2023 7GU320GU3 March 31, 2024 7GU320GU3 June 30, 2024 237GUGU3N8903 September 30, 2023 237GUGU3N8903 December 31, 2023 237GUGU3N8903 March 31, 2024 237GUGU3N8903 June 30, 2024 Finding No.: 2024-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Conditions, continued: 2. We noted variances between the expenditures reported in Financial Status Report FNS 777 against the underlying accounting records as summarized below: STATUS OF FUNDS Reported during FY24 QTR 3 - (04/01/24 - 06/30/24) Total per Expenditure Details Over (Under) Reported variance PROGRAMS/FUNCTIONS/ACTIVITIES Net outlays previously reported $7,947,328 $9,014,236 ($1,066,908) Total outlays this report period 1,434,331 2,395,557 ( 961,226) Less: Program income credits - - - Net outlays this report period (Line b minus line c) 1,434,331 2,395,557 ( 961,226) Net outlays to date (Line a plus line d) 9,381,659 11,409,793 (2,028,134) Less: Non-Federal Share of outlays - - - Total Federal share of outlays (Line e minus line f) 9,381,659 11,409,793 (2,028,134) Total unliquidated obligations 3,811,238 5,355,508 (1,544,270) Less: Non-Federal Share of unliquidated obligations shown on line h - - - Federal share of unliquidated obligations 3,811,238 5,355,508 (1,544,270) Total Federal share of outlays and unliquidated obligations 13,192,897 16,765,301 (3,572,404) Total cumulative amount of Federal fund authorized 12,239,790 12,239,790 - Unobligated balance of Federal funds ($ 953,107) ($ 4,525,511) $ 3,572,404 3. Subawards are not reported in FSRS, as follows: Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 2 2 $609,093 $609,093 Finding No.: 2024-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Cause: GDOE lacks controls over compliance with applicable reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the non-compliance was related to reporting requirements. Identified as a Repeat Finding: 2023-006 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable reporting requirements relative to submitting quarterly SF-425, accurate reporting of FNS-777 and reporting subawards in FSRS.
Views of Auditee and Corrective Actions: GDOE agrees with the finding. Due to delays in processing draw requests for CNP federal reimbursement programs, discrepancies arose between expenditures (draw requests) and outlays (draws completed), resulting in differences in data with program outlays reported to USDA FNS. Plan of action and completion date: The FNSMD has increased staffing within the Financial Management of Child Nutrition Programs to ensure fiscal activities are monitored and that all required financial reports are submitted to USDA FNS in accordance with established deadlines. FNSMD will develop and implement internal controls and procedures for financial reporting, including processes to manage, reconcile, prepare, and post the required fiscal reports with appropriate supporting documentation. FNSMD will also establish and implement internal controls to improve the claims reimbursement process prior to transmittal to the GDOE Business Office. These controls will include procedures to follow up on and confirm draws/payments to ensure timely reimbursement. In addition, FNSMD will conduct quarterly reconciliations of program expenditures, including a review of source documentation (monthly claims for reimbursement, reimbursement calculation summaries, requests/confirmations of reimbursement draws, and processing of reimbursements), to ensure accuracy. Plan to monitor and responsible officials: The FNSMD Administrator, Anthony S. Monforte, and FNSMD Program Coordinator, Franklin J. Cruz, will be responsible for implementation and ongoing execution of corrective actions. Corrective actions will be implemented by March 31, 2026.
2023-006
For four (or 10%) of forty items totaling with a net book value of $545,378 subjected to equipment safeguarding test, items were tagged as “A” or active in the property record, however, they were not physically inspected as it was noted to be missing during the audit. Item # Federal Award # Asset # Description Net Book Value Questioned Cost 1 H027A120013 14101 Insprio Premium with ILapel $ - $ - 2 H027A180013 39573 RIFTON SMALL PACER GAIT TRAINER (RED) $ 58 58 3 H027A190013-19A 78062 OTICON XCEED PLAY 2 HEARING AID $ 313 313 4 H027X210013 98153 OTICON XCEED 1 HEARING AIDE $1,020 1,020 $1,391 Cause: Responsible personnel did not properly safeguard the assets and were not made aware that assets are lost, hence, information on the property records were outdated. Finding No.: 2024-005, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Equipment and Real Property Management Questioned Costs: $1,391 Effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned costs of $1,391 was calculated based on the net book value of the equipment identified in the condition. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable equipment and real property management requirements, specifically, ensuring safeguards for preventing property loss, damage, or theft.
Show full finding ▾Hide full finding ▴Finding No.: 2024-005 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Equipment and Real Property Management Questioned Costs: $1,391 Criteria: FY2024 U.S. Department of Education Special Conditions, paragraph (5) states that “GDOE must ensure that all tangible personal property procured under Department grants is managed in accordance with the requirements of 2 CFR 200.313(a) and (c)-(e ) to ensure that such property is properly inventoried, maintained, and stored to prevent loss, damage, or theft of such property”. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the requirement of having a control system in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program. Condition: For four (or 10%) of forty items totaling with a net book value of $545,378 subjected to equipment safeguarding test, items were tagged as “A” or active in the property record, however, they were not physically inspected as it was noted to be missing during the audit. Item # Federal Award # Asset # Description Net Book Value Questioned Cost 1 H027A120013 14101 Insprio Premium with ILapel $ - $ - 2 H027A180013 39573 RIFTON SMALL PACER GAIT TRAINER (RED) $ 58 58 3 H027A190013-19A 78062 OTICON XCEED PLAY 2 HEARING AID $ 313 313 4 H027X210013 98153 OTICON XCEED 1 HEARING AIDE $1,020 1,020 $1,391 Cause: Responsible personnel did not properly safeguard the assets and were not made aware that assets are lost, hence, information on the property records were outdated. Finding No.: 2024-005, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Equipment and Real Property Management Questioned Costs: $1,391 Effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned costs of $1,391 was calculated based on the net book value of the equipment identified in the condition. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable equipment and real property management requirements, specifically, ensuring safeguards for preventing property loss, damage, or theft.
Views of Auditee and Corrective Actions: GDOE disagrees with the finding. During the audit fieldwork, the cited assets were in various stages of formal loss reporting, with police reports pending at that time. As of this response, all certificates of loss and corresponding police reports have been completed and finalized in accordance with GDOE SOP 200-015. The condition noted during audit testing was due to the timing of the audit coinciding with ongoing administrative processing and does not indicate a breakdown in internal controls or safeguarding responsibilities. Of the assets cited, one was recovered, and certificates of loss were completed for the remaining four assets, ensuring proper documentation and compliance with established procedures.
Finding No.: 2024-006 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $39,665 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Furthermore, 2 CFR 200.303(a) states that the recipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Conditions: Of sixty items, aggregating $384,666 of $3,198,523 of expenditures subjected to period of performance test, deficiencies were noted, as follows: 1. For 4 items or (7%), GDOE charged costs to a federal award after the period of performance ended and liquidated obligations of a federal award after the approved liquidation end date: Federal Award No. Purchase Order/ Invoice No. Invoice Date POP End Date Liquidation End Date Liquidation Date Expenditures Questioned Costs H027A210013 20232230 08/27/2024 09/30/2023 01/28/2024 08/01/2025 3,240 3,240 H027A220013 20233151 01/28/2025 09/30/2024 01/28/2025 Not yet paid 17,953 17,953 H027A220013 20233151 01/28/2025 09/30/2024 01/28/2025 Not yet paid 10,636 10,636 H027A220013 20240021 04/29/2025 09/30/2024 01/28/2025 Not yet paid 7,408 7,408 $39,237 $39,237 Finding No.: 2024-006, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $39,665 Conditions, continued: 2. For 1 item or (2%), compliance with period of performance of expenditure (PO# 20241462) amounting to $428 could not be determined as supporting documents such as an invoice or canceled check was not made available for examination. 3. There is no review in place to ensure that liquidation of the obligation occur within the allowable time period. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements relating to charging of costs to a federal award within the period of performance. Also, GDOE’s internal control policies and procedures in place are not suitably designed to ensure that liquidation of the obligation occurs within the allowable time period. Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $39,665. Identified as a Repeat Finding: 2023-009 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: The Division of Special Education is currently reviewing the details of the finding in order to provide an adequate response and corrective action plan.
Show full finding ▾Hide full finding ▴Finding No.: 2024-006 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $39,665 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Furthermore, 2 CFR 200.303(a) states that the recipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Conditions: Of sixty items, aggregating $384,666 of $3,198,523 of expenditures subjected to period of performance test, deficiencies were noted, as follows: 1. For 4 items or (7%), GDOE charged costs to a federal award after the period of performance ended and liquidated obligations of a federal award after the approved liquidation end date: Federal Award No. Purchase Order/ Invoice No. Invoice Date POP End Date Liquidation End Date Liquidation Date Expenditures Questioned Costs H027A210013 20232230 08/27/2024 09/30/2023 01/28/2024 08/01/2025 3,240 3,240 H027A220013 20233151 01/28/2025 09/30/2024 01/28/2025 Not yet paid 17,953 17,953 H027A220013 20233151 01/28/2025 09/30/2024 01/28/2025 Not yet paid 10,636 10,636 H027A220013 20240021 04/29/2025 09/30/2024 01/28/2025 Not yet paid 7,408 7,408 $39,237 $39,237 Finding No.: 2024-006, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $39,665 Conditions, continued: 2. For 1 item or (2%), compliance with period of performance of expenditure (PO# 20241462) amounting to $428 could not be determined as supporting documents such as an invoice or canceled check was not made available for examination. 3. There is no review in place to ensure that liquidation of the obligation occur within the allowable time period. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements relating to charging of costs to a federal award within the period of performance. Also, GDOE’s internal control policies and procedures in place are not suitably designed to ensure that liquidation of the obligation occurs within the allowable time period. Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $39,665. Identified as a Repeat Finding: 2023-009 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: The Division of Special Education is currently reviewing the details of the finding in order to provide an adequate response and corrective action plan.
Views of Auditee and Corrective Actions: The Division of Special Education is currently reviewing the details of the finding in order to provide an adequate response and corrective action plan.
2023-009
GDOE does not have procurement policies that meet the requirements of 2 CFR 200.318(a) and 2 CFR 200.324(a). Specifically, GDOE lacks documented procedures to ensure compliance with procurement transactions under a Federal award or subaward, requiring the performance and retention of cost price analysis for procurement transactions above the simplified acquisition threshold. Cause: GDOE lacks adequate internal control over periodic review of procurement policies, specifically, ensuring all required key provisions from the Compliance Supplement are included in the procurement policies. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is presented because our procedures did not identify procurement of goods or services that would have required a cost price analysis in the current fiscal year. Recommendation: GDOE should revisit its procurement policies and ensure all required provisions stated in the Compliance Supplement are covered.
Show full finding ▾Hide full finding ▴Finding No.: 2024-007 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Federal Award No.: H027A220013, H027A230013 Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: 2 CFR 200.318(a) states the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327. Accordingly, documented procedures must ensure consistency to standards in 2 CFR 200.324(a) which articulates that the recipient or subrecipient must perform a cost or price analysis for every procurement transaction, including contract modifications, in excess of the simplified acquisition threshold. Condition: GDOE does not have procurement policies that meet the requirements of 2 CFR 200.318(a) and 2 CFR 200.324(a). Specifically, GDOE lacks documented procedures to ensure compliance with procurement transactions under a Federal award or subaward, requiring the performance and retention of cost price analysis for procurement transactions above the simplified acquisition threshold. Cause: GDOE lacks adequate internal control over periodic review of procurement policies, specifically, ensuring all required key provisions from the Compliance Supplement are included in the procurement policies. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is presented because our procedures did not identify procurement of goods or services that would have required a cost price analysis in the current fiscal year. Recommendation: GDOE should revisit its procurement policies and ensure all required provisions stated in the Compliance Supplement are covered.
Views of Auditee and Corrective Actions: GDOE disagrees with the finding. Auditors cited the lack of procurement policies that meet 2 CFR 200.324(a), but did not find any evidence that GDOE did not comply with procurement regulations.
For forty-two (or 13%) of three hundred seventeen items, aggregating $8,989,530 of $28,876,832 in total cash draws, vendor was not paid either on the same day or within 24 hours after fund has been received, as follows: Item # Federal Award # Cash Draw Log # Check # Bank Clearance Date (Receipt of Fund) Check Date (Payment to Vendor) Questioned Cost 1 S403A220002 DOEAM093 711239 06/10/2024 06/12/2024 $ 31,137 2 S403A220002 DOEAM092 711238 06/10/2024 06/12/2024 6,832 3 S403A220002 DOEAM092 711238 06/10/2024 06/12/2024 6,832 4 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 5 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 6 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 7 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 8 S403A220002 DOEAM089 171719 06/10/2024 06/12/2024 1,258 9 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 1,080 10 S403A220002 DOEAM089 711231 06/10/2024 06/12/2024 899 11 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 705 12 S403A220002 DOEAM089 711233 06/10/2024 06/12/2024 525 13 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 480 14 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 330 15 S403A220002 DOEAM089 171718 06/10/2024 06/12/2024 324 16 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 255 17 S403A220002 DOEAM093 171721 06/10/2024 06/12/2024 185 18 S403A220002 DOEAM093 171721 06/10/2024 06/12/2024 41 19 S403A220002 DOEAM156 712181 10/01/2024 10/03/2024 24,520 Finding No.: 2024-008, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Cash Management Questioned Costs: $112,652 Condition, continued: Item # Federal Award # Cash Draw Log # Check # Bank Clearance Date (Receipt of Fund) Check Date (Payment to Vendor) Questioned Cost 20 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 7,535 21 S403A220002 / S403A230002 DOEAM156 172633 10/01/2024 10/03/2024 2,790 22 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 2,160 23 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 1,440 24 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 1,370 25 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 1,370 26 S403A220002 / S403A230002 DOEAM156 712181 10/01/2024 10/03/2024 1,280 27 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 1,270 28 S403A220002 / S403A230002 DOEAM156 712181 10/01/2024 10/03/2024 1,159 29 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 792 30 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 630 31 S403A220002 / S403A230002 DOEAM156 712167 10/01/2024 10/03/2024 523 32 S403A220002 / S403A230002 DOEAM156 712182 10/01/2024 10/03/2024 159 33 S403A220002 / S403A230002 DOEAM156 712174 10/01/2024 10/03/2024 140 34 S403A220002 / S403A230002 DOEAM156 172631 10/01/2024 10/03/2024 139 35 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 120 36 S403A220002 / S403A230002 DOEAM156 712183 10/01/2024 10/03/2024 105 37 S403A220002 / S403A230002 DOEAM156 712170 10/01/2024 10/03/2024 96 38 S403A220002 / S403A230002 DOEAM156 172634 10/01/2024 10/03/2024 96 39 S403A220002 / S403A230002 DOEAM156 712180 10/01/2024 10/03/2024 62 40 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 60 41 S403A220002 / S403A230002 DOEAM156 712169 10/01/2024 10/03/2024 54 42 S403A220002 / S403A230002 DOEAM156 712175 10/01/2024 10/03/2024 27 $112,652 Cause: GDOE lacks established internal control policies and procedures to disburse funds received from US Department of Education to the vendors on the same day the funds are deposited. The current Standard Operating Procedures (SOPs) do not effectively incorporate transitioned roles and responsibilities of the Third Party Fiduciary Agent (TPFA) for accountability to the specific conditions set by the US Department of Education, wherein management was not aware of this requirement. Finding No.: 2024-008, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Cash Management Questioned Costs: $112,652 Effect: GDOE is in noncompliance with applicable cash management requirements. The reportable questioned cost is $112,652. Recommendation: GDOE should establish internal control policies and procedures over compliance with applicable cash management requirements, specifically, disbursing funds to the vendors on the same day the funds are deposited.
Show full finding ▾Hide full finding ▴Finding No.: 2024-008 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Cash Management Questioned Costs: $112,652 Criteria: FY2024 U.S. Department of Education Special Conditions, states that since GDOE is managing its Department funds independently without Third-Party Fiduciary Agent (TPFA) oversight, GDOE must continue to fulfill the responsibilities that were previously performed by the TPFA. Responsibilities performed by TPFA per FY2023 U.S. Department of Education Special Conditions, Responsibilities and Requirements of the TPFA, states that “the Agent must pay vendors for the delivered goods or services and must, to the extent possible, disburse funds to the vendors on the same day the funds are deposited.” Condition: For forty-two (or 13%) of three hundred seventeen items, aggregating $8,989,530 of $28,876,832 in total cash draws, vendor was not paid either on the same day or within 24 hours after fund has been received, as follows: Item # Federal Award # Cash Draw Log # Check # Bank Clearance Date (Receipt of Fund) Check Date (Payment to Vendor) Questioned Cost 1 S403A220002 DOEAM093 711239 06/10/2024 06/12/2024 $ 31,137 2 S403A220002 DOEAM092 711238 06/10/2024 06/12/2024 6,832 3 S403A220002 DOEAM092 711238 06/10/2024 06/12/2024 6,832 4 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 5 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 6 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 7 S403A220002 DOEAM089 171717 06/10/2024 06/12/2024 3,468 8 S403A220002 DOEAM089 171719 06/10/2024 06/12/2024 1,258 9 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 1,080 10 S403A220002 DOEAM089 711231 06/10/2024 06/12/2024 899 11 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 705 12 S403A220002 DOEAM089 711233 06/10/2024 06/12/2024 525 13 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 480 14 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 330 15 S403A220002 DOEAM089 171718 06/10/2024 06/12/2024 324 16 S403A220002 DOEAM089 711234 06/10/2024 06/12/2024 255 17 S403A220002 DOEAM093 171721 06/10/2024 06/12/2024 185 18 S403A220002 DOEAM093 171721 06/10/2024 06/12/2024 41 19 S403A220002 DOEAM156 712181 10/01/2024 10/03/2024 24,520 Finding No.: 2024-008, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Cash Management Questioned Costs: $112,652 Condition, continued: Item # Federal Award # Cash Draw Log # Check # Bank Clearance Date (Receipt of Fund) Check Date (Payment to Vendor) Questioned Cost 20 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 7,535 21 S403A220002 / S403A230002 DOEAM156 172633 10/01/2024 10/03/2024 2,790 22 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 2,160 23 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 1,440 24 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 1,370 25 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 1,370 26 S403A220002 / S403A230002 DOEAM156 712181 10/01/2024 10/03/2024 1,280 27 S403A220002 / S403A230002 DOEAM156 172632 10/01/2024 10/03/2024 1,270 28 S403A220002 / S403A230002 DOEAM156 712181 10/01/2024 10/03/2024 1,159 29 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 792 30 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 630 31 S403A220002 / S403A230002 DOEAM156 712167 10/01/2024 10/03/2024 523 32 S403A220002 / S403A230002 DOEAM156 712182 10/01/2024 10/03/2024 159 33 S403A220002 / S403A230002 DOEAM156 712174 10/01/2024 10/03/2024 140 34 S403A220002 / S403A230002 DOEAM156 172631 10/01/2024 10/03/2024 139 35 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 120 36 S403A220002 / S403A230002 DOEAM156 712183 10/01/2024 10/03/2024 105 37 S403A220002 / S403A230002 DOEAM156 712170 10/01/2024 10/03/2024 96 38 S403A220002 / S403A230002 DOEAM156 172634 10/01/2024 10/03/2024 96 39 S403A220002 / S403A230002 DOEAM156 712180 10/01/2024 10/03/2024 62 40 S403A220002 / S403A230002 DOEAM156 712178 10/01/2024 10/03/2024 60 41 S403A220002 / S403A230002 DOEAM156 712169 10/01/2024 10/03/2024 54 42 S403A220002 / S403A230002 DOEAM156 712175 10/01/2024 10/03/2024 27 $112,652 Cause: GDOE lacks established internal control policies and procedures to disburse funds received from US Department of Education to the vendors on the same day the funds are deposited. The current Standard Operating Procedures (SOPs) do not effectively incorporate transitioned roles and responsibilities of the Third Party Fiduciary Agent (TPFA) for accountability to the specific conditions set by the US Department of Education, wherein management was not aware of this requirement. Finding No.: 2024-008, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Cash Management Questioned Costs: $112,652 Effect: GDOE is in noncompliance with applicable cash management requirements. The reportable questioned cost is $112,652. Recommendation: GDOE should establish internal control policies and procedures over compliance with applicable cash management requirements, specifically, disbursing funds to the vendors on the same day the funds are deposited.
Views of Auditee and Corrective Actions: GDOE partially agrees with the condition identified; however, GDOE does not agree with the stated cause that the Financial Affairs Division lacks established internal control policies and procedures to disburse funds received from the U.S. Department of Education on the same day the funds are deposited. The 24-hour payment to vendor requirement was a responsibility for the Third-Party Fiduciary Agent (TPFA). That specific condition was removed with the removal of the TPFA. The reference is no longer valid in the post TPFA environment. USEd’s Risk Management Services Division acknowledged and stated it would update the specific conditions to reflect the correct process. Notwithstanding this, GDOE is committed to processing vendor payments, when possible, within 24 hours, understanding the timing differences are influenced by operational and banking processing factors, including confirmation of fund receipt, internal review requirements, and payment processing timelines. Plan of action and completion date: GDOE acknowledges the importance of timely vendor payments and compliance with applicable cash management requirements. In response, the Financial Affairs Division is reviewing and updating standard operating procedures to more clearly incorporate the transitioned TPFA responsibilities, define roles and timelines, and strengthen monitoring controls under the current operating structure. GDOE remains committed to improving cash management processes to enhance compliance and consistency in future periods. We will now make vendor payments as soon as we see that the funds are “pending” in our bank accounts and not wait for those funds to be fully approved and deposited into our accounts. Plan to monitor and responsible officials: The DFAS and the Comptroller will ensure all payments are processed in a timely manner.
Finding No.: 2024-009 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Procurement and Suspension and Debarment Questioned Costs: $6,918 Criteria: 2 CFR 200.319 states that: (a) All procurement transactions under the Federal award must be conducted in a manner that provides full and open competition and is consistent with the standards of this section and 2 CFR 200.320. (c) (6) Examples of situations that may restrict competition include specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement. (d) (2) The recipient or subrecipient must have written procedures for procurement transactions. These procedures must ensure that all solicitations incorporate a clear and accurate description of the technical requirements for the property, equipment, or service being procured. The description may include a statement of the qualitative nature of the property, equipment, or service to be procured. When necessary, the description must provide minimum essential characteristics and standards to which the property, equipment, or service must conform. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to clearly and accurately describe the technical requirements, a “brand name or equivalent” description of features may be used to provide procurement requirements. The specific features of the named brand must be clearly stated. 2 CFR 200.324(a) states that recipient or subrecipient must perform a cost or price analysis for every procurement transaction, including contract modifications, in excess of the simplified acquisition threshold. Finding No.: 2024-009, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Procurement and Suspension and Debarment Questioned Costs: $6,918 Conditions: 1. Of thirty-nine items, aggregating $426,960 of $9,005,697 of expenditures subjected to procurement test, deficiencies were noted, as follows: a. For 1 item (or 3%), procurement did not provide full and open competition in the solicitation process. The request for quotation specified particular model, including a requirement for a specific “brand name” product instead of allowing “an equal” product to be offered. Item # Federal Award No. Purchase Order Expenditures Questioned Costs 1 S403A220002 20240435 $12,447 $6,918 2. GDOE does not have procurement policies that meet the requirements of 2 CFR 200.318(a) and 2 CFR 200.324(a). Specifically, GDOE lacks documented procedures to ensure compliance with procurement transactions under a Federal award or subaward, requiring the performance and retention of cost price analysis for procurement transactions above the simplified acquisition threshold. Cause: GDOE did not enforce monitoring controls over compliance with applicable procurement requirements. Also, GDOE lacks adequate internal controls over periodic review of procurement policies, specifically, ensuring all required key provisions from the Compliance Supplement are included in the procurement policies. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements. The reportable questioned cost is $6,918. Also, we did not identify procurement of goods or services that would have required a cost price analysis. Finding No.: 2024-009, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Procurement and Suspension and Debarment Questioned Costs: $6,918 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable procurement requirements. Also, GDOE should revisit its procurement policies and ensure all required provisions stated in the Compliance Supplement are covered.
Show full finding ▾Hide full finding ▴Finding No.: 2024-009 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Procurement and Suspension and Debarment Questioned Costs: $6,918 Criteria: 2 CFR 200.319 states that: (a) All procurement transactions under the Federal award must be conducted in a manner that provides full and open competition and is consistent with the standards of this section and 2 CFR 200.320. (c) (6) Examples of situations that may restrict competition include specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement. (d) (2) The recipient or subrecipient must have written procedures for procurement transactions. These procedures must ensure that all solicitations incorporate a clear and accurate description of the technical requirements for the property, equipment, or service being procured. The description may include a statement of the qualitative nature of the property, equipment, or service to be procured. When necessary, the description must provide minimum essential characteristics and standards to which the property, equipment, or service must conform. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to clearly and accurately describe the technical requirements, a “brand name or equivalent” description of features may be used to provide procurement requirements. The specific features of the named brand must be clearly stated. 2 CFR 200.324(a) states that recipient or subrecipient must perform a cost or price analysis for every procurement transaction, including contract modifications, in excess of the simplified acquisition threshold. Finding No.: 2024-009, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Procurement and Suspension and Debarment Questioned Costs: $6,918 Conditions: 1. Of thirty-nine items, aggregating $426,960 of $9,005,697 of expenditures subjected to procurement test, deficiencies were noted, as follows: a. For 1 item (or 3%), procurement did not provide full and open competition in the solicitation process. The request for quotation specified particular model, including a requirement for a specific “brand name” product instead of allowing “an equal” product to be offered. Item # Federal Award No. Purchase Order Expenditures Questioned Costs 1 S403A220002 20240435 $12,447 $6,918 2. GDOE does not have procurement policies that meet the requirements of 2 CFR 200.318(a) and 2 CFR 200.324(a). Specifically, GDOE lacks documented procedures to ensure compliance with procurement transactions under a Federal award or subaward, requiring the performance and retention of cost price analysis for procurement transactions above the simplified acquisition threshold. Cause: GDOE did not enforce monitoring controls over compliance with applicable procurement requirements. Also, GDOE lacks adequate internal controls over periodic review of procurement policies, specifically, ensuring all required key provisions from the Compliance Supplement are included in the procurement policies. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements. The reportable questioned cost is $6,918. Also, we did not identify procurement of goods or services that would have required a cost price analysis. Finding No.: 2024-009, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Area Area: Procurement and Suspension and Debarment Questioned Costs: $6,918 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable procurement requirements. Also, GDOE should revisit its procurement policies and ensure all required provisions stated in the Compliance Supplement are covered.
Views of Auditee and Corrective Actions: GDOE disagrees with the finding. GDOE does allow for vendors to provide quotes for brand name or equal products. In this case, the substitute product offered was not equal to the product GDOE was soliciting. The end user provided justification that the substitute product did not meet the needs or specifications requested.
For one (or 3%) of forty items, aggregating $84,774 of $5,480,631 in total cost of assets subjected to equipment acquisition test, cost of asset was incorrectly recorded in the property records. Asset # Description Cost per Property Record Cost per Invoice Variance Questioned Cost 99813 APPLE A2696 10.9" IPAD $1,842 $533 $1,309 $1,842 Finding No.: 2024-010, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Equipment and Real Property Management Questioned Costs: $1,842 Cause: Responsible personnel did not properly record the cost of the asset in the property records. Effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned cost is calculated as the value of the asset that was accumulated in the equipment listing and recorded as expenditure in the current fiscal year. Recommendation: Responsible personnel should ensure that asset information are accurately captured in the property records.
Show full finding ▾Hide full finding ▴Finding No.: 2024-010 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Equipment and Real Property Management Questioned Costs: $1,842 Criteria: FY2024 U.S. Department of Education Special Conditions, paragraph (5) states that “GDOE must ensure that all tangible personal property procured under Department grants is managed in accordance with the requirements of 2 CFR 200.313(a) and (c)-(e ) to ensure that such property is properly inventoried, maintained, and stored to prevent loss, damage, or theft of such property”. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the requirement of having property records that include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Condition: For one (or 3%) of forty items, aggregating $84,774 of $5,480,631 in total cost of assets subjected to equipment acquisition test, cost of asset was incorrectly recorded in the property records. Asset # Description Cost per Property Record Cost per Invoice Variance Questioned Cost 99813 APPLE A2696 10.9" IPAD $1,842 $533 $1,309 $1,842 Finding No.: 2024-010, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Equipment and Real Property Management Questioned Costs: $1,842 Cause: Responsible personnel did not properly record the cost of the asset in the property records. Effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned cost is calculated as the value of the asset that was accumulated in the equipment listing and recorded as expenditure in the current fiscal year. Recommendation: Responsible personnel should ensure that asset information are accurately captured in the property records.
Views of Auditee and Corrective Actions: GDOE agrees with the finding. The audit identified one asset for which the acquisition cost recorded in the property records did not match the vendor invoice amount. The discrepancy was attributed to a data entry error during the initial recording of the asset. Plan of action and completion date: The asset record has been corrected in Munis, the asset system of record, to accurately reflect the correct acquisition cost based on the vendor invoice and supporting documentation. Plan to monitor and responsible officials: The GDOE Property Management Office will continue to conduct periodic internal reviews of newly recorded assets to ensure that acquisition costs entered into Munis align with vendor invoices and receiving documentation prior to final posting. Any discrepancies identified will be promptly corrected and documented as part of routine compliance monitoring. The Inventory Management Officer, Maribeth Benavente, and Property Control Officers will be responsible for ensuring accurate asset records are maintained. Corrective action for this finding was completed as of December 28, 2025.
Finding No.: 2024-011 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Criteria: In accordance to the ARP-OA SEA Grant Conditions for Part A: Programmatic, Fiscal and Reporting Assurances to ARP-OA SEA Guam Department of Education, the Outlying Area State Educational Agencies (SEAs) must reserve not less than 20 percent of their ARP-OA SEA allocation to carry out, directly or through subgrants or contracts, activities to address the academic impact of lost instructional time by supporting the implementation of evidence-based interventions. As issued in the Frequently Asked Questions for Outlying Areas Education Stabilization Fund and American Rescue Plan Programs for State Educational Agencies & Outlying Areas Education Stabilization Fund Governors Program issued by the U.S. Department of Education dated November 2021, answer A-4 states the following: Use of ARP-OA SEA Funds to Address the Academic Impact of Lost Instructional Time. The SEA will use not less than 20 percent of its ARP-OA SEA allocation to carry out, directly or through subgrants to LEAs or through contracts, activities to address the academic impact of lost instructional time through the implementation of evidence-based interventions, such as summer learning or summer enrichment, extended day, comprehensive afterschool programs, or extended school year programs, and ensure that such interventions respond to students’ social, emotional, mental health, and academic needs and address the disproportionate impact of COVID-19 on underrepresented student subgroups (each major racial and ethnic group, economically disadvantaged students, children with disabilities, English learners, gender, migrant students), students experiencing homelessness, and children and youth in foster care, including by providing additional support to LEAs, as applicable, to fully address such impacts. Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Criteria, continued: C-2. How may an Outlying Area use ESF-SEA, ESF-Governor, and ARP-OA SEA funds to support students who have lost instructional time due to the COVID-19 pandemic? states the following: ESF-SEA, ESF-Governor, and ARP-OA SEA funds may be used to provide a variety of activities and supports to help improve the achievement of students to address the impact of lost instructional time due to the COVID-19 pandemic. For example, funds may be used for costs associated with evidence-based approaches to accelerating learning, high-dose tutoring, leveraging technology to provide embedded assessment and differentiated instruction, diagnostic and curriculum-embedded assessments, and extending the school day or year to provide additional time for student learning, enrichment, and support. These costs may include supplementing the salaries of educators and other qualified personnel to perform additional services. ESF-SEA, ESF-Governor, and ARP-OA SEA funds may be used to support the costs associated with hiring additional teachers and teacher aides to provide intensive support to students. These funds may further be used to provide professional development to educators on research-based strategies for meeting students’ academic, social, emotional, mental health, and college, career, and future readiness needs, including strategies to accelerate learning without remediation or tracking. Conditions: 1. For thirty-eight (or 95%) of forty items, aggregating $829,862 of $55,435,193 in total expenditures used in earmarking calculation, deficiencies were noted, as follows: Item # PO/ Other Reference Description Expense Amount Questioned Cost 1 ARP PP23 REGULAR SALARIES $ 10,884 $ 10,884 2 ARP PP23 REGULAR SALARIES 5,457 5,457 3 ARP PP23 BENEFITS 9,034 9,034 4 ARP PP23 REGULAR SALARIES 48,336 48,336 5 ARP PP22 BENEFITS 50,687 50,687 Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Conditions, continued: Item # PO/ Other Reference Description Expense Amount Questioned Cost 6 ARP PP21 BENEFITS 29,593 29,593 7 ARP PP21 REGULAR SALARIES 95,785 95,785 8 ARP PP19 REGULAR SALARIES 12,955 12,955 9 ARP PP17 REGULAR SALARIES 70,074 70,074 10 ARP PP17 BENEFITS 1,152 1,152 11 ARP PP16 BENEFITS 1,226 1,226 12 ARP PP16 BENEFITS 56,740 56,740 13 ARP PP16 BENEFITS 1,132 1,132 14 ARP PP16 BENEFITS 9,973 9,973 15 ARP PP16 BENEFITS 12,100 12,100 16 ARP PP15 REGULAR SALARIES 1,794 1,794 17 ARP PP15 REGULAR SALARIES 103,677 103,677 18 ARP PP15 REGULAR SALARIES 61,981 61,981 19 ARP PP14 REGULAR SALARIES 135,654 135,654 20 ARP PP14 REGULAR SALARIES 3,209 3,209 21 ARP PP13 BENEFITS 1,262 1,262 22 ARP PP13 BENEFITS 15,804 15,804 23 ARP PP13 REGULAR SALARIES 70,081 70,081 24 ARP PP13 PART-TIME 219 219 25 SPC BENEFITS 429 429 26 20240437 INSTRUCTIONAL 2,180 2,180 27 20241145 INSTRUCTIONAL 20 20 28 20240997 LIBRARY MATERIALS 940 940 29 20241458 INSTRUCTIONAL 6,481 6,481 30 20241425 LIBRARY MATERIALS 98 98 31 20241428 LIBRARY MATERIALS 72 72 32 20240756 INSTRUCTIONAL 226 226 33 20240824 INSTRUCTIONAL 2,894 2,894 34 20232899 ADMIN OFFICE SUPPLIES 64 64 35 20231916 SUPPLIES 44 44 36 20240723 INSTRUCTIONAL 130 130 37 20240410 INSTRUCTIONAL 2,564 2,564 38 20240377 INSTRUCTIONAL 616 616 $825,567 $825,567 Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Conditions, continued: Item #s 1 through 24 relate to the $51 million instructor’s payroll expenses who have undergone training to implement accelerated learning in the classroom. There is no sufficient supporting documentation or evidence that the cost meets the activities stated in the criteria. Item #s 25 through 38 relate to benefit, supplies or tools that assist teachers and instructional support staff with daily classroom instructions and library services. There is no sufficient supporting documentation or evidence that the cost meets the activities stated in the criteria. 2. GDOE did not meet the minimum 20% earmarking requirement of $57,388,125, after considering the effect of the condition #1 above. Cause: GDOE incorrectly concluded that the regular salaries and wages of teachers that underwent training to implement accelerated learning in classrooms during regular hours as evidenced-based interventions to address the lost instructional time. Additionally, GDOE did not provide clear evidence that the non-payroll expenditures for supplies, tools, and materials purchased were aligned with an approved evidence-based intervention, including clear linkage to program objectives, intervention models, or measurable instructional outcomes. Effect: GDOE is in noncompliance with applicable earmarking requirement. The reportable questioned cost is $825,567 based on the transactions examined in verifying the costs attributed to the earmarking requirement. At the error rate identified of 99.5% (known questioned cost divided by total cost of samples tested), we project that total qualified expenditures incurred by GDOE that meet the earmarking requirement is approximately $302 thousand which is deficient by approximately $57.09 million based on 20% of the grant of approximately $287 million. Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Recommendation: Responsible personnel should verify that expenditures used in earmarking calculation meet the activities stated in the criteria. Furthermore, sufficient supporting documentation or evidence should be maintained to support that costs meet the activities stated in the criteria.
Show full finding ▾Hide full finding ▴Finding No.: 2024-011 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Criteria: In accordance to the ARP-OA SEA Grant Conditions for Part A: Programmatic, Fiscal and Reporting Assurances to ARP-OA SEA Guam Department of Education, the Outlying Area State Educational Agencies (SEAs) must reserve not less than 20 percent of their ARP-OA SEA allocation to carry out, directly or through subgrants or contracts, activities to address the academic impact of lost instructional time by supporting the implementation of evidence-based interventions. As issued in the Frequently Asked Questions for Outlying Areas Education Stabilization Fund and American Rescue Plan Programs for State Educational Agencies & Outlying Areas Education Stabilization Fund Governors Program issued by the U.S. Department of Education dated November 2021, answer A-4 states the following: Use of ARP-OA SEA Funds to Address the Academic Impact of Lost Instructional Time. The SEA will use not less than 20 percent of its ARP-OA SEA allocation to carry out, directly or through subgrants to LEAs or through contracts, activities to address the academic impact of lost instructional time through the implementation of evidence-based interventions, such as summer learning or summer enrichment, extended day, comprehensive afterschool programs, or extended school year programs, and ensure that such interventions respond to students’ social, emotional, mental health, and academic needs and address the disproportionate impact of COVID-19 on underrepresented student subgroups (each major racial and ethnic group, economically disadvantaged students, children with disabilities, English learners, gender, migrant students), students experiencing homelessness, and children and youth in foster care, including by providing additional support to LEAs, as applicable, to fully address such impacts. Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Criteria, continued: C-2. How may an Outlying Area use ESF-SEA, ESF-Governor, and ARP-OA SEA funds to support students who have lost instructional time due to the COVID-19 pandemic? states the following: ESF-SEA, ESF-Governor, and ARP-OA SEA funds may be used to provide a variety of activities and supports to help improve the achievement of students to address the impact of lost instructional time due to the COVID-19 pandemic. For example, funds may be used for costs associated with evidence-based approaches to accelerating learning, high-dose tutoring, leveraging technology to provide embedded assessment and differentiated instruction, diagnostic and curriculum-embedded assessments, and extending the school day or year to provide additional time for student learning, enrichment, and support. These costs may include supplementing the salaries of educators and other qualified personnel to perform additional services. ESF-SEA, ESF-Governor, and ARP-OA SEA funds may be used to support the costs associated with hiring additional teachers and teacher aides to provide intensive support to students. These funds may further be used to provide professional development to educators on research-based strategies for meeting students’ academic, social, emotional, mental health, and college, career, and future readiness needs, including strategies to accelerate learning without remediation or tracking. Conditions: 1. For thirty-eight (or 95%) of forty items, aggregating $829,862 of $55,435,193 in total expenditures used in earmarking calculation, deficiencies were noted, as follows: Item # PO/ Other Reference Description Expense Amount Questioned Cost 1 ARP PP23 REGULAR SALARIES $ 10,884 $ 10,884 2 ARP PP23 REGULAR SALARIES 5,457 5,457 3 ARP PP23 BENEFITS 9,034 9,034 4 ARP PP23 REGULAR SALARIES 48,336 48,336 5 ARP PP22 BENEFITS 50,687 50,687 Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Conditions, continued: Item # PO/ Other Reference Description Expense Amount Questioned Cost 6 ARP PP21 BENEFITS 29,593 29,593 7 ARP PP21 REGULAR SALARIES 95,785 95,785 8 ARP PP19 REGULAR SALARIES 12,955 12,955 9 ARP PP17 REGULAR SALARIES 70,074 70,074 10 ARP PP17 BENEFITS 1,152 1,152 11 ARP PP16 BENEFITS 1,226 1,226 12 ARP PP16 BENEFITS 56,740 56,740 13 ARP PP16 BENEFITS 1,132 1,132 14 ARP PP16 BENEFITS 9,973 9,973 15 ARP PP16 BENEFITS 12,100 12,100 16 ARP PP15 REGULAR SALARIES 1,794 1,794 17 ARP PP15 REGULAR SALARIES 103,677 103,677 18 ARP PP15 REGULAR SALARIES 61,981 61,981 19 ARP PP14 REGULAR SALARIES 135,654 135,654 20 ARP PP14 REGULAR SALARIES 3,209 3,209 21 ARP PP13 BENEFITS 1,262 1,262 22 ARP PP13 BENEFITS 15,804 15,804 23 ARP PP13 REGULAR SALARIES 70,081 70,081 24 ARP PP13 PART-TIME 219 219 25 SPC BENEFITS 429 429 26 20240437 INSTRUCTIONAL 2,180 2,180 27 20241145 INSTRUCTIONAL 20 20 28 20240997 LIBRARY MATERIALS 940 940 29 20241458 INSTRUCTIONAL 6,481 6,481 30 20241425 LIBRARY MATERIALS 98 98 31 20241428 LIBRARY MATERIALS 72 72 32 20240756 INSTRUCTIONAL 226 226 33 20240824 INSTRUCTIONAL 2,894 2,894 34 20232899 ADMIN OFFICE SUPPLIES 64 64 35 20231916 SUPPLIES 44 44 36 20240723 INSTRUCTIONAL 130 130 37 20240410 INSTRUCTIONAL 2,564 2,564 38 20240377 INSTRUCTIONAL 616 616 $825,567 $825,567 Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Conditions, continued: Item #s 1 through 24 relate to the $51 million instructor’s payroll expenses who have undergone training to implement accelerated learning in the classroom. There is no sufficient supporting documentation or evidence that the cost meets the activities stated in the criteria. Item #s 25 through 38 relate to benefit, supplies or tools that assist teachers and instructional support staff with daily classroom instructions and library services. There is no sufficient supporting documentation or evidence that the cost meets the activities stated in the criteria. 2. GDOE did not meet the minimum 20% earmarking requirement of $57,388,125, after considering the effect of the condition #1 above. Cause: GDOE incorrectly concluded that the regular salaries and wages of teachers that underwent training to implement accelerated learning in classrooms during regular hours as evidenced-based interventions to address the lost instructional time. Additionally, GDOE did not provide clear evidence that the non-payroll expenditures for supplies, tools, and materials purchased were aligned with an approved evidence-based intervention, including clear linkage to program objectives, intervention models, or measurable instructional outcomes. Effect: GDOE is in noncompliance with applicable earmarking requirement. The reportable questioned cost is $825,567 based on the transactions examined in verifying the costs attributed to the earmarking requirement. At the error rate identified of 99.5% (known questioned cost divided by total cost of samples tested), we project that total qualified expenditures incurred by GDOE that meet the earmarking requirement is approximately $302 thousand which is deficient by approximately $57.09 million based on 20% of the grant of approximately $287 million. Finding No.: 2024-011, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $825,567 Recommendation: Responsible personnel should verify that expenditures used in earmarking calculation meet the activities stated in the criteria. Furthermore, sufficient supporting documentation or evidence should be maintained to support that costs meet the activities stated in the criteria.
Views of Auditee and Corrective Actions: GDOE disagrees with the finding. GDOE maintains that the implementation of the evidence-based instructional strategies by educators satisfies the 20% requirement, as approved by the USEd Outlying Areas team. The training documentation submitted to the USEd Outlying Areas team and to auditors was provided as supplemental information to demonstrate that educators were adequately prepared to implement these strategies in the classroom as part of efforts to address the academic impact of lost instructional time. Additionally, all supplies, materials, and resources procured for schools were necessary to support the effective implementation of evidence-based strategies during instructional and supplemental instructional activities. To resolve this finding, GDOE will work with the granting agency to obtain a Program Determination Letter outlining the specific deficiencies noted in the audit finding relative to the 20% requirement and seek USEd’s concurrence to previous program office approvals to transfer ARP remaining balances to local teacher pay.
For 1 (or 33%) of the 3 construction contracts subjected to the Wage Rate Requirements test, there was no executed construction contract between GDOE and the contractor, consequently, certified payrolls were not submitted to GDOE. Total expenditure charged to the program related to the construction project with the contractor (vendor ID 80757) is $45,750. Cause: GDOE incorrectly utilized the small purchase procurement upon solicitation (i.e., regular purchase order, instead of executing a contract). Effect: GDOE is in noncompliance with applicable special tests and provisions - wage rate requirements. The reportable questioned cost is $45,750. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions - wage rate requirements.
Show full finding ▾Hide full finding ▴Finding No.: 2024-012 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund – State Educational Agency (Outlying Areas) Federal Award No.: S425A210003 Area: Special Tests and Provisions - Wage Rate Requirements Questioned Costs: $45,750 Criteria: 29 CFR sections 5.5 and 5.6 requires nonfederal entities to include in their construction contracts subject to the Wage Rate Requirements (the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: For 1 (or 33%) of the 3 construction contracts subjected to the Wage Rate Requirements test, there was no executed construction contract between GDOE and the contractor, consequently, certified payrolls were not submitted to GDOE. Total expenditure charged to the program related to the construction project with the contractor (vendor ID 80757) is $45,750. Cause: GDOE incorrectly utilized the small purchase procurement upon solicitation (i.e., regular purchase order, instead of executing a contract). Effect: GDOE is in noncompliance with applicable special tests and provisions - wage rate requirements. The reportable questioned cost is $45,750. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions - wage rate requirements.
Views of Auditee and Corrective Actions: GDOE agrees with the finding. While GDOE established the proper SOPs and internal controls to ensure compliance with law, GDOE acknowledges that this sample, where the wage requirements were not included, was an administrative oversight. Further review into other samples do indicate compliance to this special test provision for wage requirement. Plan of action and completion date: As indicated, GDOE already established the proper internal controls to address the deficiency noted in this finding. Plan to monitor and responsible officials: The Supply Management Administrator, Carmen Charfauros, will ensure that all construction contracts are properly executed to ensure that wage rate requirements are required from vendors.
FAC accepted this audit on December 29, 2024 — management decision was due June 29, 2025.
As of September 30, 2024, the annual notification for School Year (SY) 2022-2023 is not published on GDOE’s website. The most recent publication is for SY 2021-2022. Cause: GDOE did not enforce controls over compliance with the applicable eligibility requirements relative to annual notifications and publications. Effect: GDOE is in noncompliance with applicable eligibility requirements. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: GDOE should establish and implement internal controls over compliance with applicable eligibility requirements. Responsible personnel should prepare and publish and required notifications. Views of Responsible Officials: GDOE agrees with the finding. GDOE did not published School Year 2022-2023 eligibility notifications for the community eligibility provision to the GDOE website by May 1, 2023 as required by the National School Lunch Act (NSLA). GDOE Child Nutrition Program (CNP) division is aware of the requirement and has publicly posted eligibility notifications to ensure compliance to NSLA. GDOE does not anticipate this will be an audit finding moving forward. Finding No.: 2023-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Eligibility Questioned Costs: $0 Views of Responsible Officials, continued: Plan of action and completion date: The CNP Office has incorporated a calendar reminder within the CNP Office and updated the internal calendar of report due dates to facilitate the timely upload of the required information to the GDOE CNP website. Plan to monitor and responsible officials: The CNP State Administrator, Franklin Cruz, will ensure that CEP eligibility notifications are posted to the GDOE website by May 1 of every year to be in compliance with the reporting requirements of the NSLA.
Show full finding ▾Hide full finding ▴Finding No.: 2023-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Eligibility Questioned Costs: $0 Criteria: In accordance with the National School Lunch Act, state agencies are required to annually notify local educational agencies (LEAs) of district-wide eligibility for the community eligibility provision (CEP). By May 1 of each year, state agencies must publish lists of eligible and near- eligible LEAs and schools on their state agency websites. Condition: As of September 30, 2024, the annual notification for School Year (SY) 2022-2023 is not published on GDOE’s website. The most recent publication is for SY 2021-2022. Cause: GDOE did not enforce controls over compliance with the applicable eligibility requirements relative to annual notifications and publications. Effect: GDOE is in noncompliance with applicable eligibility requirements. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: GDOE should establish and implement internal controls over compliance with applicable eligibility requirements. Responsible personnel should prepare and publish and required notifications. Views of Responsible Officials: GDOE agrees with the finding. GDOE did not published School Year 2022-2023 eligibility notifications for the community eligibility provision to the GDOE website by May 1, 2023 as required by the National School Lunch Act (NSLA). GDOE Child Nutrition Program (CNP) division is aware of the requirement and has publicly posted eligibility notifications to ensure compliance to NSLA. GDOE does not anticipate this will be an audit finding moving forward. Finding No.: 2023-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Eligibility Questioned Costs: $0 Views of Responsible Officials, continued: Plan of action and completion date: The CNP Office has incorporated a calendar reminder within the CNP Office and updated the internal calendar of report due dates to facilitate the timely upload of the required information to the GDOE CNP website. Plan to monitor and responsible officials: The CNP State Administrator, Franklin Cruz, will ensure that CEP eligibility notifications are posted to the GDOE website by May 1 of every year to be in compliance with the reporting requirements of the NSLA.
Finding No.: 2023-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Eligibility Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. GDOE did not published School Year 2022-2023 eligibility notifications for the community eligibility provision to the GDOE website by May 1, 2023 as required by the National School Lunch Act (NSLA). GDOE Child Nutrition Program (CNP) division is aware of the requirement and has publicly posted eligibility notifications to ensure compliance to NSLA. GDOE does not anticipate this will be an audit finding moving forward. Plan of action and completion date: The CNP Office has incorporated a calendar reminder within the CNP Office and updated the internal calendar of report due dates to facilitate the timely upload of the required information to the GDOE CNP website. Plan to monitor and responsible officials: The CNP State Administrator, Franklin Cruz, will ensure that CEP eligibility notifications are posted to the GDOE website by May 1 of every year to be in compliance with the reporting requirements of the NSLA.
For 2 (or 100%) of 2 purchase orders (POs), aggregating $11.6M of $15M in food services, no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Subsequently, on 10/15/2024, GDOE effected partial corrective action by obtaining the required certification for PO 20230905. Finding No.: 2023-005, continued Federal Agency: U.S. Department of Education AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Procurement and Suspension and Debarment Questioned Costs: $0 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
Show full finding ▾Hide full finding ▴Finding No.: 2023-005 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, all contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. Condition: For 2 (or 100%) of 2 purchase orders (POs), aggregating $11.6M of $15M in food services, no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Subsequently, on 10/15/2024, GDOE effected partial corrective action by obtaining the required certification for PO 20230905. Finding No.: 2023-005, continued Federal Agency: U.S. Department of Education AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Procurement and Suspension and Debarment Questioned Costs: $0 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
Finding No.: 2023-005 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
1. For all five claims tested, GDOE submitted the monthly claim beyond the required 60 days, as follows: 2. Subawards are not reported in FSRS, as follows: Cause: GDOE lacks controls over compliance with applicable reporting requirements. Finding No.: 2023-006, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Effect: GDOE is in noncompliance with applicable reporting requirements, which resulted in understated totals in the Schedule of Expenditures of Federal Awards (SEFA) dated April 9, 2024. GDOE subsequently corrected expenditures in its SEFA dated September 20, 2024, but thereby created an unreconciled overstatement of $278,805. No questioned cost is presented as the SEFA misstatement does not represent overstated claims. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable reporting requirements relative to timely submitting monthly claims for reimbursement and to reporting subawards in FSRS. Views of Responsible Officials: GDOE agrees with the finding. GDOE submitted monthly reimbursement claims for meals and snacks served to eligible students beyond the required 60-day reporting period and did not report sub awards of $30,000 or more to the Federal Funding Accountability and Transparency Act Sub Award Reporting System (FSRS) in FY 2023. Plan of action and completion date: At the start of FY 2024, the CNP Office added personnel to the processing of claims activity. The additional personnel to the process is to ensure the requests are reviewed and processed in a timely manner before transmitting to the GDOE Business Office for reimbursement draw and payment processing. After the transmission, the CNP Office will follow-up and confirm, via email, with the assigned personnel conducting the draws, that the requested draw/payment for claims reimbursement are completed in a timely manner. In addition, the Child Nutrition Programs Office will request for confirmation from the responsible personnel within the Business Office that the required Subaward report is submitted and posted to the respective SEFA to the FSRS. Finding No.: 2023-006, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Views of Responsible Officials, continued: Plan to monitor and responsible officials: The CNP State Administrator, Franklin Cruz, and the Comptroller will ensure that claims are submitted and processed timely.
Show full finding ▾Hide full finding ▴Finding No.: 2023-006 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, SFAs and sponsors must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15(c)). The state agency has an additional 30 days to submit a consolidated report to FNS (7 CFR 210.5(d), 220.13(b)(2), 215.11(c)(2), and 225.8). Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. For all five claims tested, GDOE submitted the monthly claim beyond the required 60 days, as follows: 2. Subawards are not reported in FSRS, as follows: Cause: GDOE lacks controls over compliance with applicable reporting requirements. Finding No.: 2023-006, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Effect: GDOE is in noncompliance with applicable reporting requirements, which resulted in understated totals in the Schedule of Expenditures of Federal Awards (SEFA) dated April 9, 2024. GDOE subsequently corrected expenditures in its SEFA dated September 20, 2024, but thereby created an unreconciled overstatement of $278,805. No questioned cost is presented as the SEFA misstatement does not represent overstated claims. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable reporting requirements relative to timely submitting monthly claims for reimbursement and to reporting subawards in FSRS. Views of Responsible Officials: GDOE agrees with the finding. GDOE submitted monthly reimbursement claims for meals and snacks served to eligible students beyond the required 60-day reporting period and did not report sub awards of $30,000 or more to the Federal Funding Accountability and Transparency Act Sub Award Reporting System (FSRS) in FY 2023. Plan of action and completion date: At the start of FY 2024, the CNP Office added personnel to the processing of claims activity. The additional personnel to the process is to ensure the requests are reviewed and processed in a timely manner before transmitting to the GDOE Business Office for reimbursement draw and payment processing. After the transmission, the CNP Office will follow-up and confirm, via email, with the assigned personnel conducting the draws, that the requested draw/payment for claims reimbursement are completed in a timely manner. In addition, the Child Nutrition Programs Office will request for confirmation from the responsible personnel within the Business Office that the required Subaward report is submitted and posted to the respective SEFA to the FSRS. Finding No.: 2023-006, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Views of Responsible Officials, continued: Plan to monitor and responsible officials: The CNP State Administrator, Franklin Cruz, and the Comptroller will ensure that claims are submitted and processed timely.
Finding No.: 2023-006 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. GDOE submitted monthly reimbursement claims for meals and snacks served to eligible students beyond the required 60-day reporting period and did not report sub awards of $30,000 or more to the Federal Funding Accountability and Transparency Act Sub Award Reporting System (FSRS) in FY 2023. Plan of action and completion date: At the start of FY 2024, the CNP Office added personnel to the processing of claims activity. The additional personnel to the process is to ensure the requests are reviewed and processed in a timely manner before transmitting to the GDOE Business Office for reimbursement draw and payment processing. After the transmission, the CNP Office will follow-up and confirm, via email, with the assigned personnel conducting the draws, that the requested draw/payment for claims reimbursement are completed in a timely manner. In addition, the Child Nutrition Programs Office will request for confirmation from the responsible personnel within the Business Office that the required Subaward report is submitted and posted to the respective SEFA to the FSRS. Plan to monitor and responsible officials: The CNP State Administrator, Franklin Cruz, and the Comptroller will ensure that claims are submitted and processed timely.
GDOE charged costs to a federal award after the period of performance ended, as follows: Subsequently, on August 21, 2024, GDOE provided journal entry GEN 120 to transfer $112,157 from Grant 2016 D16AP00059 to Grant 2021 D21AP0036. However, the corresponding 2016 expenditures were obligated prior to 03/01/2021, which is the POP start date for Grant 2021. Therefore, GEN 120 does not result in effective corrective action. No questioned cost is presented for Federal Award No. D15APG0047 and D17AP00103 because GDOE subsequently recorded journal entries in July 2024 to charge costs appropriately to grant year 2019. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Finding No.: 2023-007, continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Period of Performance Questioned Costs: $113,767 Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $113,767. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. GDOE is in receipt of Department of Interior grants and manages said funds in coordination with BBMR and Guam Homeland Security. GDOE established projects that were allowable for the use of these funds on a reimbursement basis. In an effort to maximize federal funding, GDOE initiated a transfer of expenses which was tied to a purchase order in FY 2016. Plan of action and completion date: GDOE Financial Affairs has recorded an adjusting journal entry to record the expenditures under FY 2021 but will have to reclass the expenditure in to FY 2020. GDOE will assign an accountant to reconcile GDOE’s Department of Interior budget availability with BBMR and will monitor AS400 for proper recording of transactions. Plan to monitor and responsible officials: The Comptroller (vacant) will monitor on a quarterly basis expenditure from the Department of Interior grant and will prepare a progress report on a semi-annual basis to the Deputy of Finance and Administrative Services, Morgan W. Paul, for review and approval.
Show full finding ▾Hide full finding ▴Finding No.: 2023-007 Federal Agency: U.S. Department of the Interior Pass-Through Entity: Government of Guam AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Period of Performance Questioned Costs: $113,767 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Condition: GDOE charged costs to a federal award after the period of performance ended, as follows: Subsequently, on August 21, 2024, GDOE provided journal entry GEN 120 to transfer $112,157 from Grant 2016 D16AP00059 to Grant 2021 D21AP0036. However, the corresponding 2016 expenditures were obligated prior to 03/01/2021, which is the POP start date for Grant 2021. Therefore, GEN 120 does not result in effective corrective action. No questioned cost is presented for Federal Award No. D15APG0047 and D17AP00103 because GDOE subsequently recorded journal entries in July 2024 to charge costs appropriately to grant year 2019. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Finding No.: 2023-007, continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Period of Performance Questioned Costs: $113,767 Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $113,767. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. GDOE is in receipt of Department of Interior grants and manages said funds in coordination with BBMR and Guam Homeland Security. GDOE established projects that were allowable for the use of these funds on a reimbursement basis. In an effort to maximize federal funding, GDOE initiated a transfer of expenses which was tied to a purchase order in FY 2016. Plan of action and completion date: GDOE Financial Affairs has recorded an adjusting journal entry to record the expenditures under FY 2021 but will have to reclass the expenditure in to FY 2020. GDOE will assign an accountant to reconcile GDOE’s Department of Interior budget availability with BBMR and will monitor AS400 for proper recording of transactions. Plan to monitor and responsible officials: The Comptroller (vacant) will monitor on a quarterly basis expenditure from the Department of Interior grant and will prepare a progress report on a semi-annual basis to the Deputy of Finance and Administrative Services, Morgan W. Paul, for review and approval.
Finding No.: 2023-007 Federal Agency: U.S. Department of the Interior Pass-Through Entity: Government of Guam AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Period of Performance Questioned Costs: $113,767 Views of Auditee and Corrective Actions: GDOE agrees with the finding. GDOE is in receipt of Department of Interior grants and manages said funds in coordination with BBMR and Guam Homeland Security. GDOE established projects that were allowable for the use of these funds on a reimbursement basis. In an effort to maximize federal funding, GDOE initiated a transfer of expenses which was tied to a purchase order in FY 2016. Plan of action and completion date: GDOE Financial Affairs has recorded an adjusting journal entry to record the expenditures under FY 2021 but will have to reclass the expenditure in to FY 2020. GDOE will assign an accountant to reconcile GDOE’s Department of Interior budget availability with BBMR and will monitor AS400 for proper recording of transactions. Plan to monitor and responsible officials: The Comptroller (vacant) will monitor on a quarterly basis expenditure from the Department of Interior grant and will prepare a progress report on a semi-annual basis to the Deputy of Finance and Administrative Services, Morgan W. Paul, for review and approval.
For 2 (or 67%) of 3 purchase orders (POs), aggregating $6.1M of $6.9M in total non-payroll Program costs, no Byrd Anti-Lobbying certification was provided. Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Finding No.: 2023-008, continued Federal Agency: U.S. Department of Education AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Procurement and Suspension and Debarment Questioned Costs: $0 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
Show full finding ▾Hide full finding ▴Finding No.: 2023-008 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, all contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. Condition: For 2 (or 67%) of 3 purchase orders (POs), aggregating $6.1M of $6.9M in total non-payroll Program costs, no Byrd Anti-Lobbying certification was provided. Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Finding No.: 2023-008, continued Federal Agency: U.S. Department of Education AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Procurement and Suspension and Debarment Questioned Costs: $0 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
Finding No.: 2023-008 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
1. GDOE charged costs to a federal award before the period of performance started and after the period of performance ended, as follows: No questioned cost is presented for the FY 2024 payroll costs because GDOE subsequently recorded journal entries between August 2024 and October 2024 to transfer such costs appropriately to grant year 2022. 2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as follows: Finding No.: 2023-009, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $80,983. Identified as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with Condition 1 questioned costs of $560. The questioned charges are related to TPFA purchase orders issued in fiscal year 2019, which falls outside of the period of performance. The expenditure for the 2019 purchase order was transferred from the TPFA Munis and recorded in the incorrect GDOE Munis account. GDOE disagrees with Condition 2 questioned costs of $18,041. In line with federal regulations, GDOE paid (liquidated) the obligations in question on January 4 and 26, 2024, which is before the liquidation end date of January 28, 2024. E&Y auditors are citing GDOE for the issued checks clearing the bank after the liquidation end date, however, liquidation occurs when the recipient draws funds from the grants management system and pays obligations and not specifically when checks clear the bank. Finding No.: 2023-009, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Views of Responsible Officials, continued: GDOE agrees with Condition 2 $62,382 questioned costs. While GDOE Munis system has recorded expenses of $62,382 related to Special Education (SPED) obligations, funds were not drawn for these expenditures. In GDOE’s federal review process, drawdowns are reviewed in alignment with specific conditions for allowability and in compliance with period of performance timelines. The identified funds were not expended from SPED grants. To correct this reporting deficiency, GDOE will record journal entries to transfer the expenditures to appropriate funding sources. Similarly, GDOE improperly charged $3.1 million in payroll expenditures to SPED grants after the period of performance. Subsequently, GDOE corrected this finding by making the appropriate journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will timely communicate to the Human Resources and Business Office any changes to accounts charged for federally funded payroll expenditures. The IAO now provides an independent review of drawdown requests – a control that will help prevent liquidation after applicable period of performance. Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll. Auditor Response: Condition 1: The purchase order in 2019 constitutes an obligation prior to the period of performance start date of 07/01/2020 for Grant Year 2020. Condition 2: We acknowledge that the checks are dated prior to the liquidation end date; however, program determination letters from U.S. ED from prior years have sustained audit findings wherein auditors cited the check clearing date as the liquidation date.
Show full finding ▾Hide full finding ▴Finding No.: 2023-009 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Condition: 1. GDOE charged costs to a federal award before the period of performance started and after the period of performance ended, as follows: No questioned cost is presented for the FY 2024 payroll costs because GDOE subsequently recorded journal entries between August 2024 and October 2024 to transfer such costs appropriately to grant year 2022. 2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as follows: Finding No.: 2023-009, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $80,983. Identified as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with Condition 1 questioned costs of $560. The questioned charges are related to TPFA purchase orders issued in fiscal year 2019, which falls outside of the period of performance. The expenditure for the 2019 purchase order was transferred from the TPFA Munis and recorded in the incorrect GDOE Munis account. GDOE disagrees with Condition 2 questioned costs of $18,041. In line with federal regulations, GDOE paid (liquidated) the obligations in question on January 4 and 26, 2024, which is before the liquidation end date of January 28, 2024. E&Y auditors are citing GDOE for the issued checks clearing the bank after the liquidation end date, however, liquidation occurs when the recipient draws funds from the grants management system and pays obligations and not specifically when checks clear the bank. Finding No.: 2023-009, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Views of Responsible Officials, continued: GDOE agrees with Condition 2 $62,382 questioned costs. While GDOE Munis system has recorded expenses of $62,382 related to Special Education (SPED) obligations, funds were not drawn for these expenditures. In GDOE’s federal review process, drawdowns are reviewed in alignment with specific conditions for allowability and in compliance with period of performance timelines. The identified funds were not expended from SPED grants. To correct this reporting deficiency, GDOE will record journal entries to transfer the expenditures to appropriate funding sources. Similarly, GDOE improperly charged $3.1 million in payroll expenditures to SPED grants after the period of performance. Subsequently, GDOE corrected this finding by making the appropriate journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will timely communicate to the Human Resources and Business Office any changes to accounts charged for federally funded payroll expenditures. The IAO now provides an independent review of drawdown requests – a control that will help prevent liquidation after applicable period of performance. Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll. Auditor Response: Condition 1: The purchase order in 2019 constitutes an obligation prior to the period of performance start date of 07/01/2020 for Grant Year 2020. Condition 2: We acknowledge that the checks are dated prior to the liquidation end date; however, program determination letters from U.S. ED from prior years have sustained audit findings wherein auditors cited the check clearing date as the liquidation date.
Finding No.: 2023-009 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Views of Auditee and Corrective Actions: GDOE agrees with Condition 1 questioned costs of $560. The questioned charges are related to TPFA purchase orders issued in fiscal year 2019, which falls outside of the period of performance. The expenditure for the 2019 purchase order was transferred from the TPFA Munis and recorded in the incorrect GDOE Munis account. GDOE disagrees with Condition 2 questioned costs of $18,041. In line with federal regulations, GDOE paid (liquidated) the obligations in question on January 4 and 26, 2024, which is before the liquidation end date of January 28, 2024.E&Y auditors are citing GDOE for the issued checks clearing the bank after the liquidation end date, however, liquidation occurs when the recipient draws funds from the grants management system and pays obligations and not specifically when checks clear the bank. GDOE agrees with Condition 2 $62,382 questioned costs. While GDOE Munis system has recorded expenses of $62,382 related to Special Education (SPED) obligations, funds were not drawn for these expenditures. In GDOE’s federal review process, drawdowns are reviewed in alignment with specific conditions for allowability and in compliance with period of performance timelines. The identified funds were not expended from SPED grants. To correct this reporting deficiency, GDOE will record journal entries to transfer the expenditures to appropriate funding sources. Similarly, GDOE improperly charged $3.1 million in payroll expenditures to SPED grants after the period of performance. Subsequently, GDOE corrected this finding by making the appropriate journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will timely communicate to the Human Resources and Business Office any changes to accounts charged for federally funded payroll expenditures. The IAO now provides an independent review of drawdown requests - a control that will help prevent liquidation after applicable period of performance Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll.
2022-004
For 8 (or 67%) of 12 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications and small purchases. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Finding No.: 2023-010, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Procurement and Suspension and Debarment Questioned Costs: $0 Identified as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
Show full finding ▾Hide full finding ▴Finding No.: 2023-010 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Federal Award No.: H027A210013 Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, all contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. Condition: For 8 (or 67%) of 12 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications and small purchases. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Finding No.: 2023-010, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Procurement and Suspension and Debarment Questioned Costs: $0 Identified as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
Finding No.: 2023-010 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Federal Award No.: H027A210013 Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
2022-005
1. GDOE charged costs to a federal award after the period of performance ended, as follows: No questioned cost is presented for the FY 2024 payroll costs because GDOE subsequently recorded journal entries between August 2024 and October 2024 to transfer such costs appropriately to grant year 2022. 2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Finding No.: 2023-011, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $11,004. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE disagrees with condition 1 related to FY 2024 purchase orders (PO). GDOE PO 20240171 is a copy over of the third-party fiduciary agent (TPFA) PO 20230010 which was issued in December 2022, within the CG 21 period of performance. GDOE acknowledges that the re-issued GDOE purchase order was not timely processed, however the purchase order which encumbered the funds occurred in the appropriate performance period. Additionally, relative to payroll, FPD requests a list (i.e. Staffing Pattern) of all Federally funded personnel from HR. FPD distributes the list to CG Project Leads to validate and compare to the Federal Roster as approved in the Consolidated Grants (CG) Application. The list is updated to make any corrections necessary. Once validated by Project Leads and FPD, HR is given a memo requesting to change/correct the funding year to the new grant award. In GDOE’s Munis system, if the Human Resources (HR) employee salary records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on project lead requests to update accounts to current grant year. GDOE recorded journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Finding No.: 2023-011, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Views of Responsible Officials, continued: Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will work with the HR and Business Office any changes to accounts charged for federally funded payroll expenditures. IAO now provides an independent review of drawdown requests – a control that will help prevent liquidation after applicable period of performance. Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll. Auditor Response: Condition 1: There is no clear notation on the GDOE PO 20240171-01 document itself or within the financial management system entry to indicate that such purchase order is a copy over of TPFA PO 2023010.
Show full finding ▾Hide full finding ▴Finding No.: 2023-011 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Condition: 1. GDOE charged costs to a federal award after the period of performance ended, as follows: No questioned cost is presented for the FY 2024 payroll costs because GDOE subsequently recorded journal entries between August 2024 and October 2024 to transfer such costs appropriately to grant year 2022. 2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Finding No.: 2023-011, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Effect: GDOE is in noncompliance with applicable period of performance requirements. The reportable questioned cost is $11,004. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE disagrees with condition 1 related to FY 2024 purchase orders (PO). GDOE PO 20240171 is a copy over of the third-party fiduciary agent (TPFA) PO 20230010 which was issued in December 2022, within the CG 21 period of performance. GDOE acknowledges that the re-issued GDOE purchase order was not timely processed, however the purchase order which encumbered the funds occurred in the appropriate performance period. Additionally, relative to payroll, FPD requests a list (i.e. Staffing Pattern) of all Federally funded personnel from HR. FPD distributes the list to CG Project Leads to validate and compare to the Federal Roster as approved in the Consolidated Grants (CG) Application. The list is updated to make any corrections necessary. Once validated by Project Leads and FPD, HR is given a memo requesting to change/correct the funding year to the new grant award. In GDOE’s Munis system, if the Human Resources (HR) employee salary records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on project lead requests to update accounts to current grant year. GDOE recorded journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Finding No.: 2023-011, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Views of Responsible Officials, continued: Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will work with the HR and Business Office any changes to accounts charged for federally funded payroll expenditures. IAO now provides an independent review of drawdown requests – a control that will help prevent liquidation after applicable period of performance. Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll. Auditor Response: Condition 1: There is no clear notation on the GDOE PO 20240171-01 document itself or within the financial management system entry to indicate that such purchase order is a copy over of TPFA PO 2023010.
Finding No.: 2023-011 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Views of Auditee and Corrective Actions: GDOE disagrees with condition 1 related to FY 2024 purchase orders (PO). GDOE PO 20240171 is a copy over of the third-party fiduciary agent (TPFA) PO 20230010 which was issued in December 2022, within the CG 21 period of performance. GDOE acknowledges that the re-issued GDOE purchase order was not timely processed, however the purchase order which encumbered the funds occurred in the appropriate performance period. Additionally, relative to payroll, FPD requests a list (i.e. Staffing Pattern) of all Federally funded personnel from HR. FPD distributes the list to CG Project Leads to validate and compare to the Federal Roster as approved in the Consolidated Grants (CG) Application. The list is updated to make any corrections necessary. Once validated by Project Leads and FPD, HR is given a memo requesting to change/correct the funding year to the new grant award. In GDOE’s Munis system, if the Human Resources (HR) employee salary records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on project lead requests to update accounts to current grant year. GDOE recorded journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will work with the HR and Business Office any changes to accounts charged for federally funded payroll expenditures. IAO now provides an independent review of drawdown requests - a control that will help prevent liquidation after applicable period of performance Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll.
Of 25 transactions tested, aggregating $4.8M of $8.2M in total non-payroll Program costs, we noted the following: 1. For 17 (or 68%), no Byrd Anti-Lobbying certification was provided. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Finding No.: 2023-012, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Condition, continued: 2. For 3 (or 12%), the small purchases method was used; however, less than three price quotations are on file. No questioned cost is presented as the procurement can be viewed as being technically compliant based on existing GDOE procurement regulations and guidance from the Office of the Attorney General of Guam. a. The procurement of digital subscriptions and online assessments of students for reading and math includes ten solicitations and three quotations, of which two indicate “no quote.” b. The procurement of school uniform vouchers includes six solicitations and six quotations, of which five indicate “no quote.” Additionally, we noted that one of the three major providers of uniforms on Guam was not solicited. c. The procurement of professional consulting services to provide training includes eight solicitations and three quotations, of which two indicate “no quote.” Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements. Identified as a Repeat Finding: 2022-008 Finding No.: 2023-012, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Recommendation: GDOE should enforce compliance with applicable procurement and suspension and debarment requirements. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Also, during the solicitation process, responsible personnel should consider requesting additional price quotations whenever a solicitation results in a response of “no quote” in order to allow other suppliers to participate in the Federally funded transaction. Views of Responsible Officials: GDOE agrees with Condition 1. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. GDOE disagrees with Condition 2. In line with Title 5 of the Guam Code Annotated §5213, a “no quote” response will not be considered a positive quotation but shall be part of the procurement record, which shall further include a written record or memorandum of all solicitations and responses thereto, negative or positive, orally or in writing. In the event the agency obtains less than three (3) positive quotations and provides the attestation required by this Section, the agency may proceed with the small purchase procurement. GDOE has the required attestations on file to evidence that quotations were solicited to multiple potential vendors. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance. Finding No.: 2023-012, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Auditor Response: Condition 2: In accordance with US ED’s Specific Conditions, this US ED grant is subject to the Uniform Guidance procurement requirements for non-Federal entities, e.g., 2 CFR 200.320, which requires price or rate quotations from an adequate number of qualified sources as determined appropriate by the non-Federal entity. The number determined adequate by GDOE is no less than three.
Show full finding ▾Hide full finding ▴Finding No.: 2023-012 Federal Agency: U.S. Department of Education (ED) AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with procurement and suspension and debarment requirements, the following are applicable: 1. All contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. 2. The U.S. Department of Education (ED) has approved the use of $250,000 as the small purchases threshold for U.S. ED Federal awards. When using small purchase procedures to procure property and services under a U.S ED Federal award, GDOE must obtain price or rate quotations from an adequate number of qualified sources as determined appropriate by the non-Federal entity. GDOE procurement regulations specify that no less than three positive written quotations from businesses shall be solicited, recorded, and placed in the procurement file. Finding No.: 2023-012, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Condition: Of 25 transactions tested, aggregating $4.8M of $8.2M in total non-payroll Program costs, we noted the following: 1. For 17 (or 68%), no Byrd Anti-Lobbying certification was provided. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Finding No.: 2023-012, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Condition, continued: 2. For 3 (or 12%), the small purchases method was used; however, less than three price quotations are on file. No questioned cost is presented as the procurement can be viewed as being technically compliant based on existing GDOE procurement regulations and guidance from the Office of the Attorney General of Guam. a. The procurement of digital subscriptions and online assessments of students for reading and math includes ten solicitations and three quotations, of which two indicate “no quote.” b. The procurement of school uniform vouchers includes six solicitations and six quotations, of which five indicate “no quote.” Additionally, we noted that one of the three major providers of uniforms on Guam was not solicited. c. The procurement of professional consulting services to provide training includes eight solicitations and three quotations, of which two indicate “no quote.” Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements. Identified as a Repeat Finding: 2022-008 Finding No.: 2023-012, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Recommendation: GDOE should enforce compliance with applicable procurement and suspension and debarment requirements. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Also, during the solicitation process, responsible personnel should consider requesting additional price quotations whenever a solicitation results in a response of “no quote” in order to allow other suppliers to participate in the Federally funded transaction. Views of Responsible Officials: GDOE agrees with Condition 1. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. GDOE disagrees with Condition 2. In line with Title 5 of the Guam Code Annotated §5213, a “no quote” response will not be considered a positive quotation but shall be part of the procurement record, which shall further include a written record or memorandum of all solicitations and responses thereto, negative or positive, orally or in writing. In the event the agency obtains less than three (3) positive quotations and provides the attestation required by this Section, the agency may proceed with the small purchase procurement. GDOE has the required attestations on file to evidence that quotations were solicited to multiple potential vendors. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance. Finding No.: 2023-012, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Auditor Response: Condition 2: In accordance with US ED’s Specific Conditions, this US ED grant is subject to the Uniform Guidance procurement requirements for non-Federal entities, e.g., 2 CFR 200.320, which requires price or rate quotations from an adequate number of qualified sources as determined appropriate by the non-Federal entity. The number determined adequate by GDOE is no less than three.
Finding No.: 2023-012 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with Condition 1. Procurement records that were tested by E&Y auditors were from procurements conducted prior to GDOE’s implementation of the required certifications. GDOE had this finding in the prior year and has since made the updated changes to be standardized on all procurements exceeding $100,000. GDOE disagrees with Condition 2. In line with Title 5 of the Guam Code Annotated §5213, a “no quote” response will not be considered a positive quotation but shall be part of the procurement record, which shall further include a written record or memorandum of all solicitations and responses thereto, negative or positive, orally or in writing. In the event the agency obtains less than three (3) positive quotations and provides the attestation required by this Section, the agency may proceed with the small purchase procurement. GDOE has the required attestations on file to evidence that quotations were solicited to multiple potential vendors. Plan of action and completion date: GDOE has implemented the requirement for Byrd Anti-Lobbying Amendment certifications as part of bid submissions exceeding $100,000. All contracts now include standardized language and certification forms to ensure compliance. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will continue to ensure that the Byrd Anti-Lobbying certification are a part of bid submissions exceeding $100,000. The IAO will conduct audits of GDOE’s formal procurements to ensure compliance.
2022-008
The total reported amount expended per the FFY 2022 Consolidated Grant Quarterly Report, dated 10/31/2023, differs from that of underlying accounting records by $3.5M, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the variance does not represent an overpayment. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable reporting requirements. Prior to certifying reports, responsible personnel should verify reported amounts against underlying accounting records and should retain such records to substantiate reported amounts. Finding No.: 2023-013, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Views of Responsible Officials: GDOE disagrees with the finding. GDOE is required to submit an annual report that includes financial and program performance information relative to Consolidated Grants (CG). GDOE’s FFY 2022 CG Quarterly Report, dated October 31, 2023, reported a total expenditure amount that differs from accounting records by $3.5 million. The information cited in the finding references data from a quarterly monitoring tool, which is used for internal tracking and management purposes. However, GDOE is only required to submit programmatic and financial data in its annual report as required in 34 CFR 76.132(a)(5) and further reiterated in the criteria of this finding. The official reporting obligation is limited to the data submitted in the Annual Performance Report (APR). Plan of action and completion date: GDOE disagrees with the finding. However, to ensure the proper enforcement of monitoring controls and allow for a more accurate tool used for internal tracking and management purposes, the Federal Programs Division will remove the cited financial information from its quarterly reports. To best capture this information, the Federal Programs Division will now require this information be submitted and certified by the GDOE accounting team. Auditor Response: The FFY 2022 Consolidated Grant annual performance report was not provided and is not published at GDOE’s website. The annual report given to the auditors in response to this finding was for ALN 84.425 Education Stabilization Fund and not for ALN 84.403.
Show full finding ▾Hide full finding ▴Finding No.: 2023-013 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, an Insular Area will submit an annual report containing information covering the program or programs for which the grant is used and administered, including the financial and program performance information required. Condition: The total reported amount expended per the FFY 2022 Consolidated Grant Quarterly Report, dated 10/31/2023, differs from that of underlying accounting records by $3.5M, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the variance does not represent an overpayment. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable reporting requirements. Prior to certifying reports, responsible personnel should verify reported amounts against underlying accounting records and should retain such records to substantiate reported amounts. Finding No.: 2023-013, continued Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Views of Responsible Officials: GDOE disagrees with the finding. GDOE is required to submit an annual report that includes financial and program performance information relative to Consolidated Grants (CG). GDOE’s FFY 2022 CG Quarterly Report, dated October 31, 2023, reported a total expenditure amount that differs from accounting records by $3.5 million. The information cited in the finding references data from a quarterly monitoring tool, which is used for internal tracking and management purposes. However, GDOE is only required to submit programmatic and financial data in its annual report as required in 34 CFR 76.132(a)(5) and further reiterated in the criteria of this finding. The official reporting obligation is limited to the data submitted in the Annual Performance Report (APR). Plan of action and completion date: GDOE disagrees with the finding. However, to ensure the proper enforcement of monitoring controls and allow for a more accurate tool used for internal tracking and management purposes, the Federal Programs Division will remove the cited financial information from its quarterly reports. To best capture this information, the Federal Programs Division will now require this information be submitted and certified by the GDOE accounting team. Auditor Response: The FFY 2022 Consolidated Grant annual performance report was not provided and is not published at GDOE’s website. The annual report given to the auditors in response to this finding was for ALN 84.425 Education Stabilization Fund and not for ALN 84.403.
Finding No.: 2023-013 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE disagrees with the finding. GDOE is required to submit an annual report that includes financial and program performance information relative to Consolidated Grants (CG). GDOE’s FFY 2022 CG Quarterly Report, dated October 31, 2023, reported a total expenditure amount that differs from accounting records by $3.5 million. The information cited in the finding references data from a quarterly monitoring tool, which is used for internal tracking and management purposes. However, GDOE is only required to submit programmatic and financial data in its annual report as required in 34 CFR 76.132(a)(5) and further reiterated in the criteria of this finding. The official reporting obligation is limited to the data submitted in the Annual Performance Report (APR). Plan of action and completion date: GDOE disagrees with the finding. However, to ensure the proper enforcement of monitoring controls and allow for a more accurate tool used for internal tracking and management purposes, the Federal Programs Division will remove the cited financial information from its quarterly reports. To best capture this information, the Federal Programs Division will now require this information be submitted and certified by the GDOE accounting team.
Out of $7.5M in non-payroll expenditures for equipment, we noted $5.2M pertained to the acquisition of 2,467 high efficiency particulate absorbing (HEPA) filtration units at a cost of $2,089.05 per unit, under PO number 20221923, dated July 12, 2022. Of the 2,467 units, 181 units (or 7%), totaling $378,118, remain undistributed and uninstalled as of September 30, 2024, exceeding one year from acquisition dates in November 2022 Simon Sanchez High School (SSHS) and February 2023 for F.B. Leon Guerrero Middle School (FBLG). At SSHS, the units were installed and in use in October 2022. However, due to the damages sustained by Typhoon Mawar in May 2023, SSHS has remained closed, and the units remain idle and secured at the school. FBLG was closed since December 2022 based on a structural engineering inspection report, dated September 13, 2022. The vendor delivered the units in February 2023 to Tiyan High School (THS) for storage. In this case, it would appear that GDOE might have had a two-month opportunity to cancel the FBLG order. We understand that all other schools have received their units and have no need for any additional. No planning documentation was provided for the unused supplies. Finding No.: 2023-014, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Questioned Costs: $378,118 Cause: Although the typhoon damages sustained at SSHS are beyond GDOE’s control, GDOE did not enforce monitoring controls over compliance with applicable allowable costs/cost principles requirements for the FBLG units and property standards for the SSHS and FBLG units. Effect: GDOE is in noncompliance with applicable allowable costs/cost principles requirements and property standards. The total reportable questioned cost is $378,118. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable allowable costs/cost principles requirements and property standards. GDOE should consider seeking guidance from U.S. ED as to the disposition of the unused filtration units and any resulting compensation for the Federal share. Views of Responsible Officials: GDOE disagrees with the condition related to Simon Sanchez High School (SSHS) as the units were used prior to the school’s closure. The units for SSHS were received and installed in October 2022. According to the school principal, all units were utilized in classrooms and offices. Following Typhoon Mawar, the school was deemed unsafe for occupancy, prompting the relocation of all units to a secured location. GDOE agrees with the condition related to F.B. Leon Guerrero Middle School (FBLGMS). However, GDOE would like to clarify that the units for FBLGMS were initially delivered to JP Torres for staging and assembly in December 2022, which coincided with the closure of the school. In February 2023, the unused units were transferred to Tiyan High School for secure storage. The units will continue to be securely stored until the new school facilities have completed construction in school year 2025-2026 and 2026-2027. Finding No.: 2023-014, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Questioned Costs: $378,118 Views of Responsible Officials, continued: Plan of action and completion date: GDOE plans to utilize the HEPA filtration systems across other federal awards from the same granting agency, to include the Consolidated Grant and Special Education programs. GDOE will also utilize the units as replacements for other schools as needed. Plan to monitor and responsible officials: Program Coordinator, Cellini Higa, will coordinate the use of the HEPA units for other federal awards and replacements for other schools. Auditor Response: Based on receiving reports provided to the auditors, the finding now reflects that the SSHS units were installed in October 2022, whereas the acquisition date of 11/15/2022 is based on GDOE’s fixed asset listing. GDOE has not provided a written assessment of the supplies which have remained unused for seventeen months between May 2023 and October 2024.
Show full finding ▾Hide full finding ▴Finding No.: 2023-014 Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Questioned Costs: $378,118 Criteria: In accordance with applicable allowable cost/cost principles requirements, costs must be reasonable for the performance of the Federal award. Also, in accordance with property standards, if there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other Federal award, the non-Federal entity must retain the supplies for use on other activities or sell them, but must, in either case, compensate the Federal Government for its share. Condition: Out of $7.5M in non-payroll expenditures for equipment, we noted $5.2M pertained to the acquisition of 2,467 high efficiency particulate absorbing (HEPA) filtration units at a cost of $2,089.05 per unit, under PO number 20221923, dated July 12, 2022. Of the 2,467 units, 181 units (or 7%), totaling $378,118, remain undistributed and uninstalled as of September 30, 2024, exceeding one year from acquisition dates in November 2022 Simon Sanchez High School (SSHS) and February 2023 for F.B. Leon Guerrero Middle School (FBLG). At SSHS, the units were installed and in use in October 2022. However, due to the damages sustained by Typhoon Mawar in May 2023, SSHS has remained closed, and the units remain idle and secured at the school. FBLG was closed since December 2022 based on a structural engineering inspection report, dated September 13, 2022. The vendor delivered the units in February 2023 to Tiyan High School (THS) for storage. In this case, it would appear that GDOE might have had a two-month opportunity to cancel the FBLG order. We understand that all other schools have received their units and have no need for any additional. No planning documentation was provided for the unused supplies. Finding No.: 2023-014, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Questioned Costs: $378,118 Cause: Although the typhoon damages sustained at SSHS are beyond GDOE’s control, GDOE did not enforce monitoring controls over compliance with applicable allowable costs/cost principles requirements for the FBLG units and property standards for the SSHS and FBLG units. Effect: GDOE is in noncompliance with applicable allowable costs/cost principles requirements and property standards. The total reportable questioned cost is $378,118. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable allowable costs/cost principles requirements and property standards. GDOE should consider seeking guidance from U.S. ED as to the disposition of the unused filtration units and any resulting compensation for the Federal share. Views of Responsible Officials: GDOE disagrees with the condition related to Simon Sanchez High School (SSHS) as the units were used prior to the school’s closure. The units for SSHS were received and installed in October 2022. According to the school principal, all units were utilized in classrooms and offices. Following Typhoon Mawar, the school was deemed unsafe for occupancy, prompting the relocation of all units to a secured location. GDOE agrees with the condition related to F.B. Leon Guerrero Middle School (FBLGMS). However, GDOE would like to clarify that the units for FBLGMS were initially delivered to JP Torres for staging and assembly in December 2022, which coincided with the closure of the school. In February 2023, the unused units were transferred to Tiyan High School for secure storage. The units will continue to be securely stored until the new school facilities have completed construction in school year 2025-2026 and 2026-2027. Finding No.: 2023-014, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Questioned Costs: $378,118 Views of Responsible Officials, continued: Plan of action and completion date: GDOE plans to utilize the HEPA filtration systems across other federal awards from the same granting agency, to include the Consolidated Grant and Special Education programs. GDOE will also utilize the units as replacements for other schools as needed. Plan to monitor and responsible officials: Program Coordinator, Cellini Higa, will coordinate the use of the HEPA units for other federal awards and replacements for other schools. Auditor Response: Based on receiving reports provided to the auditors, the finding now reflects that the SSHS units were installed in October 2022, whereas the acquisition date of 11/15/2022 is based on GDOE’s fixed asset listing. GDOE has not provided a written assessment of the supplies which have remained unused for seventeen months between May 2023 and October 2024.
Finding No.: 2023-014 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425 Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Questioned Costs: $378,118 Views of Auditee and Corrective Actions: GDOE disagrees with the condition related to Simon Sanchez High School (SSHS) as the units were used prior to the school’s closure. The units for SSHS were received and installed in October 2022. According to the school principal, all units were utilized in classrooms and offices. Following Typhoon Mawar, the school was deemed unsafe for occupancy, prompting the relocation of all units to a secured location. GDOE agrees with the condition related to F.B. Leon Guerrero Middle School (FBLGMS). However, GDOE would like to clarify that the units for FBLGMS were initially delivered to JP Torres for staging and assembly in December 2022, which coincided with the closure of the school. In February 2023, the unused units were transferred to Tiyan High School for secure storage. The units will continue to be securely stored until the new school facilities have completed construction in school year 2025-2026 and 2026-2027. Plan of action and completion date: GDOE plans to utilize the HEPA filtration systems across other federal awards from the same granting agency, to include the Consolidated Grant and Special Education programs. GDOE will also utilize the units as replacements for other schools as needed. Plan to monitor and responsible officials: Program Coordinator, Cellini Higa, will coordinate the use of the HEPA units for other federal awards and replacements for other schools.
GDOE has not submitted final 2023 expenditure data for elementary/secondary education, higher education, and overall Outlying Area spending. Based on our reading of email communications from U.S. ED, Education Program Specialist, Insular Areas, in September 2024, we noted that U.S. ED is aware of such pending submission. Calculations using preliminary data appear to indicate that GDOE’s maintenance of effort for FY 2023 may be deficient, as follows: Finding No.: 2023-015, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Cause: GDOE did not enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Effect: GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. No questioned cost is presented because the source data for determining overall State spending for the baseline years was the State’s Single Audit Reports, and the State’s Single Audit Report for FY 2023 is yet to be issued. Identified as a Repeat Finding: 2022-010 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Responsible personnel should work in close liaison with Government of Guam to verify the State’s overall spending levels. Views of Responsible Officials: GDOE disagrees with the finding. The final 2023 data for the Maintenance of Effort (MOE) will be based on the audited financials for FY 2023 as approved in GDOE’s communication with USEd. Since the audits for GDOE and the Government of Guam were both delayed, the final data needed to complete the MOE calculation was not available. GDOE was proactive in providing USEd with preliminary calculations using appropriated amounts for elementary and secondary education which indicated that the MOE fell within the acceptable one percent of the baseline. GDOE believes that it cannot be held to an audit finding for an MOE when the MOE calculation has yet to be finalized. Additionally, GDOE was approved for waivers in FY 2022. Upon completion of this year’s audit and calculation of MOE, GDOE is still subject to a waiver request approval which would negate the MOE finding identified. Finding No.: 2023-015, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Views of Responsible Officials, continued: Plan of action and completion date: Once the financial audits for GDOE and GovGuam are complete, the final FY 2023 MOE will be calculated. Should the FY 2023 MOE fall short of the baseline, a waiver request will be submitted to USEd. The submission of final data and waiver request, if needed, will be completed by December 30, 2024. Plan to monitor and responsible officials: The Internal Audit Office will ensure that the final MOE data is calculated and, if needed, a waiver request is prepared and submitted. Auditor Response: Although the Government of Guam’s audited financial statements have not been issued, GDOE has the ability to coordinate with the Government of Guam’s Division of Accounts to obtain the State’s preliminary overall spending data for purposes of monitoring the extent of potential MOE deficiencies. Such monitoring is key in GDOE’s communications with US ED over compliance with maintenance of effort requirements.
Show full finding ▾Hide full finding ▴Finding No.: 2023-015 Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Criteria: In accordance with applicable matching, level of effort, earmarking requirements and section 18008 of the CARES Act, the State will maintain support for elementary and secondary education, and State support for higher education, at least at the levels of such support that is the average of such State’s support for elementary and secondary education and for higher education provided in fiscal years 2017, 2018, and 2019. Such average is defined as the baseline. Furthermore, a State must use the same data sources in determining overall State spending for the baseline years and FY 2023. Condition: GDOE has not submitted final 2023 expenditure data for elementary/secondary education, higher education, and overall Outlying Area spending. Based on our reading of email communications from U.S. ED, Education Program Specialist, Insular Areas, in September 2024, we noted that U.S. ED is aware of such pending submission. Calculations using preliminary data appear to indicate that GDOE’s maintenance of effort for FY 2023 may be deficient, as follows: Finding No.: 2023-015, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Cause: GDOE did not enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Effect: GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. No questioned cost is presented because the source data for determining overall State spending for the baseline years was the State’s Single Audit Reports, and the State’s Single Audit Report for FY 2023 is yet to be issued. Identified as a Repeat Finding: 2022-010 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Responsible personnel should work in close liaison with Government of Guam to verify the State’s overall spending levels. Views of Responsible Officials: GDOE disagrees with the finding. The final 2023 data for the Maintenance of Effort (MOE) will be based on the audited financials for FY 2023 as approved in GDOE’s communication with USEd. Since the audits for GDOE and the Government of Guam were both delayed, the final data needed to complete the MOE calculation was not available. GDOE was proactive in providing USEd with preliminary calculations using appropriated amounts for elementary and secondary education which indicated that the MOE fell within the acceptable one percent of the baseline. GDOE believes that it cannot be held to an audit finding for an MOE when the MOE calculation has yet to be finalized. Additionally, GDOE was approved for waivers in FY 2022. Upon completion of this year’s audit and calculation of MOE, GDOE is still subject to a waiver request approval which would negate the MOE finding identified. Finding No.: 2023-015, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Views of Responsible Officials, continued: Plan of action and completion date: Once the financial audits for GDOE and GovGuam are complete, the final FY 2023 MOE will be calculated. Should the FY 2023 MOE fall short of the baseline, a waiver request will be submitted to USEd. The submission of final data and waiver request, if needed, will be completed by December 30, 2024. Plan to monitor and responsible officials: The Internal Audit Office will ensure that the final MOE data is calculated and, if needed, a waiver request is prepared and submitted. Auditor Response: Although the Government of Guam’s audited financial statements have not been issued, GDOE has the ability to coordinate with the Government of Guam’s Division of Accounts to obtain the State’s preliminary overall spending data for purposes of monitoring the extent of potential MOE deficiencies. Such monitoring is key in GDOE’s communications with US ED over compliance with maintenance of effort requirements.
Finding No.: 2023-015 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425 Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE disagrees with the finding. The final 2023 data for the Maintenance of Effort (MOE) will based on the audited financials for FY 2023 as approved in GDOE’s communication with USEd. Since the audits for GDOE and the Government of Guam were both delayed, the final data needed to complete the MOE calculation was not available. GDOE was proactive in providing USEd with preliminary calculations using appropriated amounts for elementary and secondary education which indicated that the MOE fell within the acceptable one percent of the baseline. GDOE believes that it cannot be held to an audit finding for an MOE when the MOE calculation has yet to be finalized. Additionally, GDOE was approved for waivers in FY 2022. Upon completion of this year’s audit and calculation of MOE, GDOE is still subject to a waiver request approval which would negate the MOE finding identified. Plan of action and completion date: Once the financial audits for GDOE and GovGuam are complete, the final FY 2023 MOE will be calculated. Should the FY 2023 MOE fall short of the baseline, a waiver request will be submitted to USEd. The submission of final data and waiver request, if needed, will be completed by December 30, 2024. Plan to monitor and responsible officials: The Internal Audit Office will ensure that the final MOE data is calculated and, if needed, a waiver request is prepared and submitted.
2022-010
FY 2023 expenditure amounts reported in the required annual report differ from underlying accounting records, as follows: Cause: GDOE did not enforce monitoring controls over compliance with reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the variances do not represent overpayments. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable reporting requirements. Responsible personnel should retain underlying accounting records used during report preparation to substantiate reported amounts. Finding No.: 2023-016, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund Area: Reporting Questioned Costs: $0 Views of Responsible Officials: GDOE disagrees with the finding. Annual reports are prepared at a point in time. GDOE submitted the required annual reports for ESF I, ESF II, and ARP on May 23, 2023. Auditors referencing figures in the annual report should also be reconciling to the same period covered and utilized in the financial reporting, as transactions and adjustments occur in the system after the reports are submitted. Plan of action and completion date: GDOE disagrees with the finding but will continue to monitor all federal financial reporting for accuracy and timely submission per the grant requirements. Auditor Response: GDOE did not provide underlying accounting records or a reconciliation to substantiate reported amounts.
Show full finding ▾Hide full finding ▴Finding No.: 2023-016 Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts should be substantiated by underlying accounting records. Condition: FY 2023 expenditure amounts reported in the required annual report differ from underlying accounting records, as follows: Cause: GDOE did not enforce monitoring controls over compliance with reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the variances do not represent overpayments. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable reporting requirements. Responsible personnel should retain underlying accounting records used during report preparation to substantiate reported amounts. Finding No.: 2023-016, continued Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund Area: Reporting Questioned Costs: $0 Views of Responsible Officials: GDOE disagrees with the finding. Annual reports are prepared at a point in time. GDOE submitted the required annual reports for ESF I, ESF II, and ARP on May 23, 2023. Auditors referencing figures in the annual report should also be reconciling to the same period covered and utilized in the financial reporting, as transactions and adjustments occur in the system after the reports are submitted. Plan of action and completion date: GDOE disagrees with the finding but will continue to monitor all federal financial reporting for accuracy and timely submission per the grant requirements. Auditor Response: GDOE did not provide underlying accounting records or a reconciliation to substantiate reported amounts.
Finding No.: 2023-016 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE disagrees with the finding. Annual reports are prepared at a point in time. GDOE submitted the required annual reports for ESF I, ESF II, and ARP on May 23, 2023. Auditors referencing figures in the annual report should also be reconciling to the same period covered and utilized in the financial reporting, as transactions and adjustments occur in the system after the reports are submitted. Plan of action and completion date: GDOE disagrees with the finding but will continue to monitor all federal financial reporting for accuracy and timely submission per the grant requirements.
FAC accepted this audit on December 6, 2023 — management decision was due June 6, 2024.
Finding No.: 2022-004 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education – Grants to States Area: Period of Performance Questioned Costs: $1,835 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Conditions: 1. GDOE charged costs to a federal award after the period of performance ended, as follows: No questioned cost is reported because GDOE subsequently provided journal entry JNL 37, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. 2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as follows: Federal Award No. Liquidation End Date Liquidation Date Expenditures $ 1,996 No questioned cost is reported for $161 because GDOE subsequently provided journal entry JNL 39, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. Reportable questioned costs total $1,835 from Condition 2. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. During the period of performance in question, the TPFA issued check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one day after the liquidation period expired. GDOE’s Corrective Action Plan includes additional details.
Show full finding ▾Hide full finding ▴Finding No.: 2022-004 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education – Grants to States Area: Period of Performance Questioned Costs: $1,835 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Unless the federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award or in the approved extension. Conditions: 1. GDOE charged costs to a federal award after the period of performance ended, as follows: No questioned cost is reported because GDOE subsequently provided journal entry JNL 37, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. 2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as follows: Federal Award No. Liquidation End Date Liquidation Date Expenditures $ 1,996 No questioned cost is reported for $161 because GDOE subsequently provided journal entry JNL 39, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. Reportable questioned costs total $1,835 from Condition 2. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award or liquidating obligations incurred under a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. During the period of performance in question, the TPFA issued check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one day after the liquidation period expired. GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-004 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education – Grants to States Area: Period of Performance Questioned Costs: $1,835 Views of Auditee and Corrective Actions: GDOE agrees with the finding. During the period of performance in question, the TPFA issued check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one day after the liquidation period expired. Plan of action and completion date: As of April 2023, the TPFA has not been issuing checks to vendors, as the responsibility was returned to the GDOE to process all fiscal transactions within the GDOE Munis. The Business Office will closely monitor grant liquidation dates and payments to vendors. SOPs will be reviewed to update the procedures for monitoring grant period of performance. Plan to monitor and responsible officials: The Deputy of Finance and Administrative Services, Joann Camacho, as well as the GDOE Comptroller (vacant), will assign an accountant to monitor the expenditures of federal grants and the corresponding periods of performance and liquidation periods.
For 9 (or 53%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Subsequently, on 10/13/2023, GDOE effected partial corrective action by obtaining the required certification for PO 20213366. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix-II-to-Part-200(I). GDOE’s Corrective Action Plan includes additional details.
Show full finding ▾Hide full finding ▴Finding No.: 2022-005 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education – Grants to States Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, all contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. Condition: For 9 (or 53%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Subsequently, on 10/13/2023, GDOE effected partial corrective action by obtaining the required certification for PO 20213366. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix-II-to-Part-200(I). GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-005 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education – Grants to States Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix_x0002_II-to-Part-200(I). Plan of action and completion date: GDOE will update its SOPs and immediately require the Byrd Anti-Lobbying Amendment certification as part of vendor bid packets that are expected to exceed $100,000. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will assign a Buyer to monitor the procurement records to ensure all applicable provisions are adhered to. Additionally, the IAO will audit formal procurements to determine that the required documents are included in the records.
GDOE charged costs to a federal award after the period of performance ended, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. No questioned cost is reported because GDOE subsequently provided journal entry JNL 38, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. In GDOE’s Munis system, if the Human Resources (HR) pay records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on the project leads request to update accounts to current grant year. GDOE corrected the improperly charged payroll expenditures to the proper grant year via the journal voucher process. GDOE’s Corrective Action Plan includes additional details.
Show full finding ▾Hide full finding ▴Finding No.: 2022-006 Federal Agency: U.S. Department of Education AL Program: 84.181 Special Education – Grants for Infants and Families Area: Period of Performance Questioned Costs: $0 Criteria: In accordance with applicable period of performance (POP) requirements, a non-federal entity may charge only allowable costs incurred during a federal award’s period of performance. Condition: GDOE charged costs to a federal award after the period of performance ended, as follows: Cause: GDOE did not enforce monitoring controls over compliance with applicable period of performance requirements. Effect: GDOE is in noncompliance with applicable period of performance requirements. No questioned cost is reported because GDOE subsequently provided journal entry JNL 38, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable period of performance requirements. Prior to charging costs to a federal award, responsible personnel should verify that the period of performance, including the liquidation end date, has not expired. Views of Responsible Officials: GDOE agrees with the finding. In GDOE’s Munis system, if the Human Resources (HR) pay records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on the project leads request to update accounts to current grant year. GDOE corrected the improperly charged payroll expenditures to the proper grant year via the journal voucher process. GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-006 Federal Agency: U.S. Department of Education AL Program: 84.181 Special Education – Grants for Infants and Families Area: Period of Performance Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. In GDOE’s Munis system, if the Human Resources (HR) pay records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on the project leads request to update accounts to current grant year. GDOE corrected the improperly charged payroll expenditures to the proper grant year via the journal voucher process. Plan of action and completion date: The GDOE Business Office will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will timely communicate to the Human Resources and Business Office any changes to accounts charged for federally funded payroll expenditures. Plan to monitor and responsible officials: GDOE Comptroller (vacant), will assign an accountant to monitor the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers, Federal Compliance review team will be responsible for timely communicating any changes in grant year funding to HR.
For 2 (or 12%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix-II-to-Part-200(I). GDOE’s Corrective Action Plan includes additional details
Show full finding ▾Hide full finding ▴Finding No.: 2022-007 Federal Agency: U.S. Department of Education AL Program: 84.181 Special Education - Grants for Infants and Families Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, all contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. Condition: For 2 (or 12%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix-II-to-Part-200(I). GDOE’s Corrective Action Plan includes additional details
Finding No.: 2022-007 Federal Agency: U.S. Department of Education AL Program: 84.181 Special Education – Grants for Infants and Families Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix_x0002_II-to-Part-200(I). Plan of action and completion date: GDOE will update its SOPs and immediately require the Byrd Anti-Lobbying Amendment certification as part of vendor bid packets that are expected to exceed $100,000. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will assign a Buyer to monitor the procurement records to ensure all applicable provisions are adhered to. Additionally, the IAO will audit formal procurements to determine that the required documents are included in the records.
For 15 (or 60%) of 25 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Subsequently, from 10/13/2023 through 10/18/2023, GDOE effected partial corrective action by obtaining the required certifications from contractors for item numbers 5 through 15. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix-II-to-Part-200(I). GDOE’s Corrective Action Plan includes additional details.
Show full finding ▾Hide full finding ▴Finding No.: 2022-008 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, all contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. Condition: For 15 (or 60%) of 25 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Subsequently, from 10/13/2023 through 10/18/2023, GDOE effected partial corrective action by obtaining the required certifications from contractors for item numbers 5 through 15. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix-II-to-Part-200(I). GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-008 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix_x0002_II-to-Part-200(I). GDOE’s Supply Management Office, with the guidance of GDOE IAO, was able to subsequently confirm that vendors for 14 out of the 15 purchase orders complied with the anti-lobbying provision, therefore the finding was reduced. Plan of action and completion date: GDOE will update its SOPs and immediately require the Byrd Anti-Lobbying Amendment certification as part of vendor bid packets that are expected to exceed $100,000. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will assign a Buyer to monitor the procurement records to ensure all applicable provisions are adhered to. Additionally, the IAO will audit formal procurements to determine that the required documents are included in the records.
Finding No.: 2022-009 Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency (Outlying Areas) (ARP-OA SEA) Federal Award No.: COVID-19 S425X210003 Area: Activities Allowed or Unallowed Questioned Costs: $0 Criteria: In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions, including U.S. Department of Education’s approval to charge school-based utilities only for the period from August 2021 through May 2022 and July 2022 through September 2023. Conditions: For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the Program. No grantor approval for June 2022 was provided. Cause: GDOE did not enforce monitoring controls over compliance with applicable activities allowed or unallowed requirements. Effect: GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN 84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the utilities expenditures from ALN 84.425X to ALN 84.425A. Identified as a Repeat Finding: 2021-003 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable activities allowed or unallowed requirements. Prior to charging costs to a Federal award, responsible personnel should verify that the cost is consistent with specific grantor approvals. Views of Responsible Officials: The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing the maximization for a safe return of students to the classroom, and necessary for continued operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19. USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be used to support activities that are necessary to maintain the operation and continuity of services in the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought grantor approval and USEd approved the allowability of utility expense under the ARP, and more recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense. Auditor Response: Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Show full finding ▾Hide full finding ▴Finding No.: 2022-009 Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency (Outlying Areas) (ARP-OA SEA) Federal Award No.: COVID-19 S425X210003 Area: Activities Allowed or Unallowed Questioned Costs: $0 Criteria: In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions, including U.S. Department of Education’s approval to charge school-based utilities only for the period from August 2021 through May 2022 and July 2022 through September 2023. Conditions: For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the Program. No grantor approval for June 2022 was provided. Cause: GDOE did not enforce monitoring controls over compliance with applicable activities allowed or unallowed requirements. Effect: GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN 84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the utilities expenditures from ALN 84.425X to ALN 84.425A. Identified as a Repeat Finding: 2021-003 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable activities allowed or unallowed requirements. Prior to charging costs to a Federal award, responsible personnel should verify that the cost is consistent with specific grantor approvals. Views of Responsible Officials: The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing the maximization for a safe return of students to the classroom, and necessary for continued operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19. USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be used to support activities that are necessary to maintain the operation and continuity of services in the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought grantor approval and USEd approved the allowability of utility expense under the ARP, and more recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense. Auditor Response: Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Finding No.: 2022-009 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund AL Sub-Program: 84.425X American Rescue Plan – State Agency Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425X210003 Area: Activities Allowed or Unallowed Questioned Costs: $0 Views of Auditee and Corrective Actions: The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing the maximization for a safe return of students to the classroom, and necessary for continued operation and promoting handwashing techniques to prepare, prevent, and respond to COVID_x0002_19. USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be used to support activities that are necessary to maintain the operation and continuity of services in the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought grantor approval and USEd approved the allowability of utility expense under the ARP, and more recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense.
2021-003
GDOE’s maintenance of effort for FY 2022 appears deficient, as follows: Based on our reading of email communications from U.S. ED, Education Program Specialist, Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is under U.S. ED’s review. U.S. ED identified differences between levels of support reported by GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a projected deficiency in MOE levels for FY 2022. Cause: GDOE did not enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Effect: GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. No questioned cost is reported because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable to quantify the known deficiency. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible personnel should work in close liaison with Government of Guam and verify that the reported amounts are consistent with the state’s overall levels. Views of Responsible Officials: The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does GDOE control the direct funding support (appropriations) for elementary and secondary education; or higher education. GDOE can only provide its calculation based on the projected levels of support (for elementary and secondary education) utilizing the formula guidance on MOE calculations issued by USEd. The calculation is based on appropriation levels provided by the Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA maintenance of effort to fall short by less than 1%. Auditor Response: We acknowledge that audited financial data from the Government of Guam is not available to derive an exact amount; however, there appears to be general agreement that GDOE’s estimated MOE for FY 2022 falls short of the required level.
Show full finding ▾Hide full finding ▴Finding No.: 2022-010 Federal Agency: U.S. Department of Education (ED) AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Criteria: In accordance with applicable matching, level of effort, earmarking requirements and section 18008 of the CARES Act, the State will maintain support for elementary and secondary education, and State support for higher education, at least at the levels of such support that is the average of such State’s support for elementary and secondary education and for higher education provided in fiscal years 2017, 2018, and 2019. Such average is defined as the baseline. Condition: GDOE’s maintenance of effort for FY 2022 appears deficient, as follows: Based on our reading of email communications from U.S. ED, Education Program Specialist, Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is under U.S. ED’s review. U.S. ED identified differences between levels of support reported by GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a projected deficiency in MOE levels for FY 2022. Cause: GDOE did not enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Effect: GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. No questioned cost is reported because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable to quantify the known deficiency. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable matching, level of effort, earmarking requirements relative to maintenance of effort requirements. Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible personnel should work in close liaison with Government of Guam and verify that the reported amounts are consistent with the state’s overall levels. Views of Responsible Officials: The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does GDOE control the direct funding support (appropriations) for elementary and secondary education; or higher education. GDOE can only provide its calculation based on the projected levels of support (for elementary and secondary education) utilizing the formula guidance on MOE calculations issued by USEd. The calculation is based on appropriation levels provided by the Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA maintenance of effort to fall short by less than 1%. Auditor Response: We acknowledge that audited financial data from the Government of Guam is not available to derive an exact amount; however, there appears to be general agreement that GDOE’s estimated MOE for FY 2022 falls short of the required level.
Finding No.: 2022-010 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund AL Sub-Program: 84.425A Education Stabilization Fund – State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Views of Auditee and Corrective Actions: The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does GDOE control the direct funding support (appropriations) for elementary and secondary education; or higher education. GDOE can only provide its calculation based on the projected levels of support (for elementary and secondary education) utilizing the formula guidance on MOE calculations issued by USEd. The calculation is based on appropriation levels provided by the Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA maintenance of effort to fall short by less than 1%
FAC accepted this audit on June 8, 2022 — management decision was due December 8, 2022.
For two (or 8%) of 25 nonpayroll transactions tested, aggregating $11.9M of $35M in total Program nonpayroll expenditures, we noted that the stipends for student participants in the summer Youth Employment Internship Program (YEIP) did not appear to prevent, prepare for, or respond to COVID-19. In October 2021, GDOE requested and received approval from U.S. Department of Education to draw funds for the YEIP stipends; however, the request described that ?priority placement of students included the underrepresented populations who are indigent, homeless, wards of the state (foster) and incarcerated.? Documentation was not provided to demonstrate implementation of priority placement efforts. Furthermore, the nature of the YEIP did not appear to differ from the annual internship programs sponsored by the Government of Guam for many pre-pandemic summers. See Schedule of Findings and Questioned Costs for chart/table. The total program cost of the summer YEIP for FY 2021 was $1,342,420. Cause: GDOE did not effectively monitor transactions for compliance with applicable activities allowed or unallowed requirements. Effect: GDOE is in noncompliance with applicable activities allowed or unallowed requirements. The total questioned cost is $1,342,420. Recommendation: GDOE should monitor transactions for compliance with applicable activities allowed or unallowed requirements. Prior to charging costs to a Federal award, responsible personnel should confirm that the activity is allowed under the terms and conditions of the award and that documentation of such confirmation is maintained on file. Views of Responsible Officials: The GDOE disagrees with the finding. As a result of the impacts caused by COVID-19, all students on Guam, including public, charter and private non-public, are considered ?underrepresented?. The Guam Department of Education (GDOE) and the Department of Youth Affairs (DYA) made a concerted effort to formalize a partnership, through a Memorandum of Understanding (MOU) to create opportunities for students to recover learning time loss. In addition, the YEIP ensured to prioritize the identification of indigent, homeless, wards of the state (foster) and incarcerated students for access and participation. Additionally, the YEIP aimed to provide experiences to the participants with a safe and productive way to utilize their time to recover the various losses of learning during the pandemic. Participants were required to submit a final individual or group project (video, power point, report, etc.) documenting their experiences and what they learned. (See Attachment B ? Final Project Samples, GDOE press release, and YEIP flyer). Auditor Response: We do not doubt that the YEIP was beneficial to participants. However, GDOE did not provide the MOU or other documentation to demonstrate how the YEIP responded to students? academic, social, and emotional needs and addressed the disproportionate impact of COVID-19 on underrepresented student subgroups (each major racial and ethnic group, economically disadvantaged students, children with disabilities, English learners, gender, migrant students, students experiencing homelessness, and children and youth in foster care). GDOE did not provide documentation to demonstrate how the YEIP prioritized the identification of indigent, homeless, wards of the state (foster) and incarcerated students for access and participation. The referenced GDOE press release and YEIP flyer specified that the program was open to the island?s youth and that applications would be accepted on a first-come first served basis.
Show full finding ▾Hide full finding ▴Finding No.: 2021-003 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund (ESF) Federal Award No.: 84.425X S425X210003 Area: Activities Allowed or Unallowed Questioned Costs: $1,342,420 Criteria: In accordance with applicable activities allowed or unallowed requirements, governors and SEAs (State Educational Agencies) must demonstrate that costs incurred by governors, SEAs, and subrecipients are allowable under the relevant statutory and regulatory provisions, assurances, and Certification and Agreement, and consistent with the purpose of the ESF, which is ?to prevent, prepare for, and respond to COVID-19.? Additionally, in accordance with the American Rescue Plan Outlying Areas State Educational Agency Fund (ARP ? OA SEA) grant conditions, the SEA will ?ensure that programs respond to students? academic, social, and emotional needs and address the disproportionate impact of COVID- 19 on underrepresented student subgroups (each major racial and ethnic group, economically disadvantaged students, children with disabilities, English learners, gender, migrant students, students experiencing homelessness, and children and youth in foster care).? Condition: For two (or 8%) of 25 nonpayroll transactions tested, aggregating $11.9M of $35M in total Program nonpayroll expenditures, we noted that the stipends for student participants in the summer Youth Employment Internship Program (YEIP) did not appear to prevent, prepare for, or respond to COVID-19. In October 2021, GDOE requested and received approval from U.S. Department of Education to draw funds for the YEIP stipends; however, the request described that ?priority placement of students included the underrepresented populations who are indigent, homeless, wards of the state (foster) and incarcerated.? Documentation was not provided to demonstrate implementation of priority placement efforts. Furthermore, the nature of the YEIP did not appear to differ from the annual internship programs sponsored by the Government of Guam for many pre-pandemic summers. See Schedule of Findings and Questioned Costs for chart/table. The total program cost of the summer YEIP for FY 2021 was $1,342,420. Cause: GDOE did not effectively monitor transactions for compliance with applicable activities allowed or unallowed requirements. Effect: GDOE is in noncompliance with applicable activities allowed or unallowed requirements. The total questioned cost is $1,342,420. Recommendation: GDOE should monitor transactions for compliance with applicable activities allowed or unallowed requirements. Prior to charging costs to a Federal award, responsible personnel should confirm that the activity is allowed under the terms and conditions of the award and that documentation of such confirmation is maintained on file. Views of Responsible Officials: The GDOE disagrees with the finding. As a result of the impacts caused by COVID-19, all students on Guam, including public, charter and private non-public, are considered ?underrepresented?. The Guam Department of Education (GDOE) and the Department of Youth Affairs (DYA) made a concerted effort to formalize a partnership, through a Memorandum of Understanding (MOU) to create opportunities for students to recover learning time loss. In addition, the YEIP ensured to prioritize the identification of indigent, homeless, wards of the state (foster) and incarcerated students for access and participation. Additionally, the YEIP aimed to provide experiences to the participants with a safe and productive way to utilize their time to recover the various losses of learning during the pandemic. Participants were required to submit a final individual or group project (video, power point, report, etc.) documenting their experiences and what they learned. (See Attachment B ? Final Project Samples, GDOE press release, and YEIP flyer). Auditor Response: We do not doubt that the YEIP was beneficial to participants. However, GDOE did not provide the MOU or other documentation to demonstrate how the YEIP responded to students? academic, social, and emotional needs and addressed the disproportionate impact of COVID-19 on underrepresented student subgroups (each major racial and ethnic group, economically disadvantaged students, children with disabilities, English learners, gender, migrant students, students experiencing homelessness, and children and youth in foster care). GDOE did not provide documentation to demonstrate how the YEIP prioritized the identification of indigent, homeless, wards of the state (foster) and incarcerated students for access and participation. The referenced GDOE press release and YEIP flyer specified that the program was open to the island?s youth and that applications would be accepted on a first-come first served basis.
Finding No.: 2021-003 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund (ESF) Federal Award No.: 84.425X S425X210003 Area: Activities Allowed or Unallowed Questioned Costs: $1,342,420 Views of Auditee and Corrective Actions: The GDOE disagrees with the finding. As a result of the impacts caused by COVID-19, all students on Guam, including public, charter and private non-public, are considered ?underrepresented?. The Guam Department of Education (GDOE) and the Department of Youth Affairs (DYA) made a concerted effort to formalize a partnership, through a Memorandum of Understanding (MOU) to create opportunities for students to recover learning time loss. In addition, the YEIP ensured to prioritize the identification of indigent, homeless, wards of the state (foster) and incarcerated students for access and participation. Additionally, the YEIP aimed to provide experiences to the participants with a safe and productive way to utilize their time to recover the various losses of learning during the pandemic. Participants were required to submit a final individual or group project (video, power point, report, etc.) documenting their experiences and what they learned. (See Attachment B ? Final Project Samples, GDOE press release, and YEIP flyer)
For two (or 67%) of three transactions tested, aggregating $2,581 of $4.9M in total Program payroll expenditures, documentation was not sufficient to substantiate that the cost was allowable under the Program, as follows: See Schedule of Findings and Questioned Costs for chart/table. 1. Check # 2011869 was paid for overtime to an administrative staff who was initially hired under a non-Federal funding source. No time-and-effort certification or other activity report was provided to demonstrate that the employee devoted the overtime hours for the performance of the Federal award. Also, under Guam laws and regulations, it appears the employee is exempt from receiving overtime pay. The total overtime paid to this exempt employee during FY 2021 is $145, which is a questioned cost. 2. Check # 162616 was paid for overtime to an administrative staff who was hired under a different Federal funding source. A time-and-effort certification was provided to indicate the number of overtime hours devoted to the performance of the Federal award; however, under Guam laws and regulations, the employee appears to be exempt from receiving overtime pay. The total overtime paid to this exempt employee during FY 2021 is $16,986, which is a questioned cost. The total of overtime paid to potentially exempt employees during FY 2021 is estimated to be $1,511,984. Cause: GDOE did not effectively monitor transactions for compliance with applicable allowable costs/cost principles requirements. Effect: GDOE is in noncompliance with applicable allowable costs/cost principles requirements. The total questioned cost is $17,131, as the projected questioned cost exceeds the threshold. See Schedule of Findings and Questioned Costs for chart/table. Recommendation: GDOE should monitor transactions for compliance with applicable allowable costs/cost principles requirements. Prior to charging costs to a Federal award, responsible personnel should confirm that the costs are allowable under the terms and conditions of the award and are consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity. Views of Responsible Officials: GDOE agrees with the finding and describes corrective action in its Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding No.: 2021-004 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund (ESF) Federal Award No.: 84.425A S425A200003 Area: Allowable Costs/Cost Principles Questioned Costs: $17,131 Criteria: In accordance with applicable allowable costs/cost principles requirements, in order for costs to be allowable under Federal awards, the costs must be necessary and reasonable for the performance of the Federal award, be consistent with policies and procedures that apply uniformly to both federally- financed and other activities of the non-Federal entity, and be adequately documented. Condition: For two (or 67%) of three transactions tested, aggregating $2,581 of $4.9M in total Program payroll expenditures, documentation was not sufficient to substantiate that the cost was allowable under the Program, as follows: See Schedule of Findings and Questioned Costs for chart/table. 1. Check # 2011869 was paid for overtime to an administrative staff who was initially hired under a non-Federal funding source. No time-and-effort certification or other activity report was provided to demonstrate that the employee devoted the overtime hours for the performance of the Federal award. Also, under Guam laws and regulations, it appears the employee is exempt from receiving overtime pay. The total overtime paid to this exempt employee during FY 2021 is $145, which is a questioned cost. 2. Check # 162616 was paid for overtime to an administrative staff who was hired under a different Federal funding source. A time-and-effort certification was provided to indicate the number of overtime hours devoted to the performance of the Federal award; however, under Guam laws and regulations, the employee appears to be exempt from receiving overtime pay. The total overtime paid to this exempt employee during FY 2021 is $16,986, which is a questioned cost. The total of overtime paid to potentially exempt employees during FY 2021 is estimated to be $1,511,984. Cause: GDOE did not effectively monitor transactions for compliance with applicable allowable costs/cost principles requirements. Effect: GDOE is in noncompliance with applicable allowable costs/cost principles requirements. The total questioned cost is $17,131, as the projected questioned cost exceeds the threshold. See Schedule of Findings and Questioned Costs for chart/table. Recommendation: GDOE should monitor transactions for compliance with applicable allowable costs/cost principles requirements. Prior to charging costs to a Federal award, responsible personnel should confirm that the costs are allowable under the terms and conditions of the award and are consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity. Views of Responsible Officials: GDOE agrees with the finding and describes corrective action in its Corrective Action Plan.
Finding No.: 2021-004 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund (ESF) Federal Award No.: 84.425A S425A200003 Area: Allowable Costs/Cost Principles Questioned Costs: $17,131 Views of Auditee and Corrective Actions: The GDOE agrees with the finding. Plan of action and completion date: The GDOE will be conferring with the U.S. Department of Education (ED) to determine whether such expenditures can be reimbursed. Upon ED?s determination, GDOE will implement the necessary corrective actions. The GDOE will also be reviewing overtime expenditures to confirm reasonableness and proper processing. The GDOE Internal Audit Office will work collaboratively with the TPFA to conduct a thorough analysis of all overtime and, if necessary, to advise GDOE management in implementing stronger internal controls. Plan to monitor and responsible officials: Superintendent Jon J.P. Fernandez will initiate and monitor the status of the review and ED?s determination.
FAC accepted this audit on April 6, 2021 — management decision was due October 6, 2021.
GDOE did not complete its annual physical inventory of property, which commenced in January 2020. Although GDOE experienced limitations brought about by the Coronavirus pandemic in March 2020, no documentation was provided to demonstrate efforts to resume the inventory during the remainder of calendar year 2020 or to obtain extensions from oversight authorities. We are unable to assess the overall cumulative monetary value of this deficiency. However, the table below summarizes each GDOE FY 2020 major program that was technically subject to a physical inventory in FY 2020 and that has capital outlays over the past five years. See Schedule of Findings and Questioned Costs for chart/table Cause: GDOE did not enforce compliance with applicable equipment and real property management requirements. Effect: GDOE is in noncompliance with applicable equipment and real property management requirements for an annual physical inventory of property. There is a potential for the loss, damage, or theft of property to go undetected and uncorrected. No questioned cost is presented as we are unable to quantify the extent of noncompliance Recommendation: GDOE should enforce compliance with applicable equipment and real property management requirements and complete its annual physical inventory of property. GDOE should consider the feasibility of completing timely annual inventories versus the possibility of revisiting GDOE?s policy to align with the Uniform Guidance and the Government of Guam?s policy of completing inventories every two years. Views of Responsible Officials: GDOE agrees with the finding and provides details in GDOE?s Corrective Action Plan
Show full finding ▾Hide full finding ▴Finding No.: 2020-001 Pass-Through Entity: Government of Guam Federal Agency: U.S. Department of the Interior CFDA Program: 15.875 Economic, Social, and Political Development of the Territories Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.600 Head Start Cluster Area: Equipment and Real Property Management Area: Capital Assets Questioned Costs: $0 Criteria: In compliance with applicable equipment and real property management requirements, a state must use, manage, and dispose of equipment acquired under a federal award in accordance with state laws and procedures. In accordance with the Guam Department of Education Fixed Asset System Standard Operating Procedures, Section 7, a physical inventory will be conducted annually. Condition: GDOE did not complete its annual physical inventory of property, which commenced in January 2020. Although GDOE experienced limitations brought about by the Coronavirus pandemic in March 2020, no documentation was provided to demonstrate efforts to resume the inventory during the remainder of calendar year 2020 or to obtain extensions from oversight authorities. We are unable to assess the overall cumulative monetary value of this deficiency. However, the table below summarizes each GDOE FY 2020 major program that was technically subject to a physical inventory in FY 2020 and that has capital outlays over the past five years. See Schedule of Findings and Questioned Costs for chart/table Cause: GDOE did not enforce compliance with applicable equipment and real property management requirements. Effect: GDOE is in noncompliance with applicable equipment and real property management requirements for an annual physical inventory of property. There is a potential for the loss, damage, or theft of property to go undetected and uncorrected. No questioned cost is presented as we are unable to quantify the extent of noncompliance Recommendation: GDOE should enforce compliance with applicable equipment and real property management requirements and complete its annual physical inventory of property. GDOE should consider the feasibility of completing timely annual inventories versus the possibility of revisiting GDOE?s policy to align with the Uniform Guidance and the Government of Guam?s policy of completing inventories every two years. Views of Responsible Officials: GDOE agrees with the finding and provides details in GDOE?s Corrective Action Plan
Finding No.: 2020-001 Pass-Through Entity: Government of Guam Federal Agency: U.S. Department of the Interior CFDA Program: 15.875 Economic, Social, and Political Development of the Territories Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.600 Head Start Cluster Area: Equipment and Real Property Management Area: Capital Assets Questioned Costs: $0 Views of Auditee and Corrective Actions: The Guam Department of Education (GDOE) agrees with the finding. The Governor of Guam declared a state of Emergency in Guam due to the novel Corona Virus Disease 2019 (Executive Order 2020-03) and ordered the closure of non-essential Government of Guam offices and schools (Executive Order 2020-04). In compliance with the Governor?s orders, the Guam Education Board and the Superintendent implemented the closure of GDOE offices and schools. The GDOE offices and schools eventually reopened, but operated in a limited capacity for health and safety of the students and personnel. As a result, the GDOE could not complete its full inventory cycle for School Year (SY) 2019-2020. Further, the GDOE acknowledges that there was no formal authority granted by the U.S. Department of Education (ED) for an extension of completing the inventory. However, the GDOE did make efforts to communicate the progress and status of its inventory with ED?s Risk Management Services. Plan of action and completion date: The GDOE is currently undergoing its physical inventory for SY 2020-2021; the results of which will be reported by July 2021. Additionally, the GDOE will examine its policy to ensure proper alignment to the Uniform Guidance regulations, Government of Guam policies, and high-risk specific conditions. GDOE is the process of procuring a fixed asset management automated system, which is targeted for implementation for the next inventory cycle. Plan to monitor and responsible officials: The Receiving and Property Management division is responsible for conducting and reporting the GDOE?s fixed assets inventory annually per Standard Operating Procedures (SOP) 200-015. Inventory Management Officer Maribeth Benavente, Supply Management Administrator Carmen Charfauros, and Deputy Superintendent of Finance and Administrative Services Dr. Zenaida Asuncion are responsible for carrying out the duties and responsibilities per the SOP.
FAC accepted this audit on July 3, 2020 — management decision was due January 3, 2021.
For four (or 40%) of 10 transactions tested, aggregating $225,365 of $461,700 in total non-payroll program expenditures, airfare services were procured using a rotation list. However, an assessment of GDOE's overall air travel funded Federally and non-Federally for FY 2019 demonstrates that the selection of travel agencies was neither rotated fairly nor competitively. See Schedule of Findings and Questioned Costs for chart/table. No questioned cost is presented as the differential in airfare among travel agencies would not be significant, and from May 2019 through September 2019, GDOE attempted corrective action in order to more fairly distribute the procurement of air travel. See Schedule of Findings and Questioned Costs for chart/table. Criteria: In accordance with the Application and Contract for Establishment of a Junior Reserve Officers? Training Corp (JROTC) Unit, GDOE agreed to contract terms, including the following: 1. To furnish a classroom for the exclusive use of the Program. 2. To ensure that instructors are provided liability insurance (and proof thereof). Condition: For one (or 17%) of six units tested, we noted the following for the U.S. Army JROTC unit at Simon Sanchez High School: 1. GDOE furnished the unit with cafeteria space instead of the agreed exclusive classroom. 2. GDOE did not provide proof of liability insurance for the instructor. Cause: GDOE did not enforce compliance with contract terms for the Program. Effect: GDOE is in noncompliance with applicable contract terms for the Program and could be subject to probation. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: GDOE should enforce compliance with contract terms for the Program and should provide JROTC units with exclusive classrooms and JROTC instructors with liability insurance. Views of Responsible Officials: GDOE concurs with the finding and recommendation and has provided details in GDOE?s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding No.: 2019-001 Federal Agency: U.S. Department of Defense CFDA Program: 12.000 Junior Reserve Officers? Training Corps Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement requirements, procurement of air travel vouchers from local travel agencies shall be rotated fairly and competitively requiring that no single travel agency or small group of travel agencies monopolize the sale of air travel vouchers. Condition: For four (or 40%) of 10 transactions tested, aggregating $225,365 of $461,700 in total non-payroll program expenditures, airfare services were procured using a rotation list. However, an assessment of GDOE's overall air travel funded Federally and non-Federally for FY 2019 demonstrates that the selection of travel agencies was neither rotated fairly nor competitively. See Schedule of Findings and Questioned Costs for chart/table. No questioned cost is presented as the differential in airfare among travel agencies would not be significant, and from May 2019 through September 2019, GDOE attempted corrective action in order to more fairly distribute the procurement of air travel. See Schedule of Findings and Questioned Costs for chart/table. Criteria: In accordance with the Application and Contract for Establishment of a Junior Reserve Officers? Training Corp (JROTC) Unit, GDOE agreed to contract terms, including the following: 1. To furnish a classroom for the exclusive use of the Program. 2. To ensure that instructors are provided liability insurance (and proof thereof). Condition: For one (or 17%) of six units tested, we noted the following for the U.S. Army JROTC unit at Simon Sanchez High School: 1. GDOE furnished the unit with cafeteria space instead of the agreed exclusive classroom. 2. GDOE did not provide proof of liability insurance for the instructor. Cause: GDOE did not enforce compliance with contract terms for the Program. Effect: GDOE is in noncompliance with applicable contract terms for the Program and could be subject to probation. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: GDOE should enforce compliance with contract terms for the Program and should provide JROTC units with exclusive classrooms and JROTC instructors with liability insurance. Views of Responsible Officials: GDOE concurs with the finding and recommendation and has provided details in GDOE?s Corrective Action Plan.
Finding No.: 2019-001 Federal Agency: U.S. Department of Defense CFDA Program: 12.000 Junior Reserve Officers? Training Corps (JROTC) Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: The Guam Department of Education (GDOE) concurs with the finding and recommendation. Corrective Action Plan: GDOE?s current Standard Operating Procedures (SOPs) require travel arrangements to be made with travel agents on a rotation list in compliance with Title 5 of the Guam Code Annotated ?5001 as documented under GDOE?s SOP 200-021 on Off-Island Travel Procedures requiring travel agents to be selected on a rotational basis. GDOE will continue to utilize this rotation tool to ensure that no single travel agency or a small group of travel agencies monopolize the sale of air travel to the Department. In addition, GDOE shall exercise reasonableness in implementing this methodology. Accordingly, the SOP will be updated to reflect this change and will be monitored regularly by the Comptroller. Plan to Monitor: The Comptroller will ensure that the rotation list is reviewed on a regular basis. The Comptroller is also responsible for ensuring the aforementioned SOP is reviewed at least every two years and is updated as needed. Officials Responsible: Comptroller and designated Accountant(s) Planned Completion Date: On or before December 31, 2020.
For one (or 17%) of six units tested, we noted the following for the U.S. Army JROTC unit at Simon Sanchez High School: 1. GDOE furnished the unit with cafeteria space instead of the agreed exclusive classroom. 2. GDOE did not provide proof of liability insurance for the instructor. Cause: GDOE did not enforce compliance with contract terms for the Program. Effect: GDOE is in noncompliance with applicable contract terms for the Program and could be subject to probation. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: GDOE should enforce compliance with contract terms for the Program and should provide JROTC units with exclusive classrooms and JROTC instructors with liability insurance. Views of Responsible Officials: GDOE concurs with the finding and recommendation and has provided details in GDOE?s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding No.: 2019-002 Federal Agency: U.S. Department of Defense CFDA Program: 12.000 Junior Reserve Officers? Training Corps Federal Award Number: U.S. Army Area: Special Tests and Provisions Questioned Costs: $0 Criteria: In accordance with the Application and Contract for Establishment of a Junior Reserve Officers? Training Corp (JROTC) Unit, GDOE agreed to contract terms, including the following: 1. To furnish a classroom for the exclusive use of the Program. 2. To ensure that instructors are provided liability insurance (and proof thereof). Condition: For one (or 17%) of six units tested, we noted the following for the U.S. Army JROTC unit at Simon Sanchez High School: 1. GDOE furnished the unit with cafeteria space instead of the agreed exclusive classroom. 2. GDOE did not provide proof of liability insurance for the instructor. Cause: GDOE did not enforce compliance with contract terms for the Program. Effect: GDOE is in noncompliance with applicable contract terms for the Program and could be subject to probation. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Recommendation: GDOE should enforce compliance with contract terms for the Program and should provide JROTC units with exclusive classrooms and JROTC instructors with liability insurance. Views of Responsible Officials: GDOE concurs with the finding and recommendation and has provided details in GDOE?s Corrective Action Plan.
Finding No.: 2019-002 Federal Agency: U.S. Department of Defense CFDA Program: 12.000 Junior Reserve Officers? Training Corps Area: Special Tests and Provisions Questioned Costs: $0 Views of Auditee and Corrective Actions: Condition 1: GDOE concurs with the finding and recommendation. GDOE has provided reasonable accommodations to the unit for the cafeteria space to function as its temporary classroom. The arrangement was deemed as the best short-term solution as the school awaits the construction of the new campus. Corrective Action Plan: GDOE has assigned a classroom to be used exclusively by the Program upon completion of the new campus. Management will also work with the JROTC unit to provide the classroom space and include its requirements in the design of the new campus. Plan to Monitor: The Deputy Superintendent of Educational Support and Community Learning (ESCL) will be responsible for monitoring compliance with the contract terms stipulated in the Application and Contract for Establishment of a JROTC unit. Officials Responsible: Deputy Superintendent of ESCL Planned Completion Date: Plans for the new campus construction are ongoing. Condition 2: GDOE concurs with the finding and recommendation. GDOE did not purchase insurance covering potential risks as it is substantially self-insured against claims for negligence and catastrophic losses. Corrective Action Plan: GDOE will provide liability insurance for the instructors and present proof thereof in accordance with the contract terms. Plan to Monitor: The Deputy Superintendent of ESCL will be responsible for monitoring compliance with the contract terms stipulated in the Application and Contract for Establishment of a JROTC unit. Officials Responsible: Deputy Superintendent of ESCL Planned Completion Date: On or before the start of School Year 2020-2021.
FAC accepted this audit on May 21, 2019 — management decision was due November 21, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on June 29, 2018 — management decision was due December 29, 2018.
GSA_MIGRATION
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GSA_MIGRATION
GSA_MIGRATION
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GSA_MIGRATION
2016-001
FAC accepted this audit on May 16, 2017 — management decision was due November 16, 2017.
GSA_MIGRATION
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GSA_MIGRATION
GSA_MIGRATION
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GSA_MIGRATION
2015-001
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