We performed this review to determine whether the Des Moines Independent Community School District expended ESSER grant funds for allowable purposes in accordance with applicable requirements. We determined that of the 20 expenditures that we reviewed, 17 were allowable and in accordance with applicable requirements. Two expenditures totaling $164,580 were unallowable because they were for advertising and public relations costs prohibited under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 Code of Federal Regulations part 200), and a portion ($33,326) of the remaining expenditure totaling $666,527 appeared to be allowable but Des Moines either did not pay or adequately support proof of payment for that portion (the other $633,201 of this expenditure was both allowable and supported with documentation). We also identified a cash management issue related to the unsupported amount of $33,326 because Des Moines was reimbursed by the ESSER grant for that amount before it had an immediate need for those funds. Lastly, we found that Des Moines complied with key Federal procurement requirements, including those covering the procurement methods to be followed and contract cost, price, and provisions, when procuring the goods or services associated with each ESSER expenditure we reviewed. We made four recommendations to address the unallowable and unsupported expenditures and the cash management issue that we identified to ensure ESSER funds are used, documented, and managed in accordance with applicable requirements.
Open Recommendations
Recommendation Number | Significant Recommendation | Recommended Questioned Costs | Recommended Funds for Better Use | Additional Details | |
---|---|---|---|---|---|
1 | No | $164,580 | $0 | ||
We recommend that the Assistant Secretary for the Office of Elementary and Secondary Education require Iowa torequire Des Moines to return to the U.S. Department of Education the $164,580 that Des Moines improperly charged tothe ARP ESSER grant for LEA advertising and public relations or reallocate the funds to other allowable costs. Identifyany additional improper charges to ESSER grants for LEA advertising and public relations, including those made duringperiods not covered by our review, and if applicable, return the funds to the U.S. Department of Education or reallocatethem to other allowable costs. | |||||
2 | No | $33,326 | $0 | ||
We recommend that the Assistant Secretary for the Office of Elementary and Secondary Education require Iowa torequire Des Moines to provide documentation to support payment of the unsupported portion of the HVAC upgradesexpenditure, return to the U.S. Department of Education the $33,326 in ARP ESSER grant funds, or reallocate the fundsto other allowable costs. | |||||
3 | No | $0 | $0 | ||
We recommend that the Assistant Secretary for the Office of Elementary and Secondary Education require Iowa torequire Des Moines to calculate the interest earned (actual or imputed) on any ESSER grant funds that were retained(withheld) and not immediately paid to vendors, and if applicable, ensure that the correct amount of interest is returned tothe Federal government in accordance with 2 C.F.R. section 200.305(b)(9). | |||||
4 | Yes | $0 | $0 | ||
We recommend that the Assistant Secretary for the Office of Elementary and Secondary Education require Iowa torequire Des Moines to ensure that LEA officials responsible for making or reviewing and approving purchases receivesufficient training on Federal rules and regulations related to grant administration and management, particularly thoseaddressing allowability, documentation requirements, and cash management. |