Puerto Rico Department of Education’s Unallowable Use of Temporary Emergency Impact Aid for Displaced Students Program Funds for Payroll Activities

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Date Issued

Thursday, June 24, 2021

Submitting OIG

Department of Education OIG

Other Participating OIGs

Department of Education OIG

Agencies Reviewed/Investigated

Department of Education

Components

Office of Elementary and Secondary Education

Report Number

F19GA0027

Report Description

The purpose of this flash report is to apprise the U.S. Department of Education (Department) of the risk that the Puerto Rico Department of Education (Puerto Rico DOE) used Department program funds for payroll costs related to inactive employees1 from 2007 to 2020.We found that the Puerto Rico DOE may have charged up to $1.3 million in unallowable payroll costs to the Emergency Impact Aid program.

Report Type

Other

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Additional Details

https://www2.ed.gov/about/offices/list/oig/auditreports/fy2021/f19ga0027.pdf

Open Recommendations

This report has 3 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1.1	Yes	$0	$0
Require the Puerto Rico DOE to demonstrate that it has implemented sufficient controls over its payroll system to ensure that Department program funds are safeguarded; and, if it cannot, impose specific conditions on all Department grants awarded, including disaster and pandemic relief grants prohibiting the use of grant funds for payroll without documentation to support that payments went to active employees.
1.2	Yes	$0	$0
Closely monitor the Puerto Rico DOE’s implementation of internal controls over payroll included in its corrective action plan prepared in response to the new time and attendance controls required by the Puerto Rico Financial Oversight and Management Board.
1.3	Yes	$0	$0
Require the Puerto Rico DOE to identify the amount of unallowable payroll costs charged to the Emergency Impact Aid program and other Department program funds and establish a plan to return those funds to the Department.