Audit 10647

2023-002 – Special Test and Provision – Annual Report Card, High School Graduation Rate – Material Weakness in Internal Control over Compliance/Material Noncompliance ALN and Title: 84.010 Title I Grants to Local Educational Agencies Pass-Through Entity: NM Public Education Department Identifying Number: 24101 Award Year: 2022-23 School Year Condition: The District was not obtaining proper written documentation to substantiate the correct student withdrawal codes for 33 of 40 students tested. The withdrawal form did not have the signature of the school official and contained a different withdrawal code on the withdrawal form than the sample listed in 6 of 40 students tested. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with 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 Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per the May 2023 Compliance Supplement, to remove a student from the cohort, a school or LEA must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or LEA must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. A student who is retained in grade, enrolls in a GED program, or leaves school for any other reason may not be counted as having transferred out for the purpose of calculating graduation rate and must remain in the adjusted cohort (ESEA sections 1111(h)(1)(C)(iii)(II) and 8101(23), (25) (20 USC 6311(h)(1)(C)(iii)(II) and 7801(23), (25))). Per Farmington Municipal School District Board Policy, Section J Students, J-1300 Student Withdrawal from School, a withdrawal form shall be presented to the parent or legal guardian of a student who may or must withdraw from school. The withdrawal form shall include space for the reason for withdrawal and the signature of an official of the school from which the student has withdrawn. Questioned Costs: None noted. Effect: District’s reported High School Graduation Rate for the 2022-2023 school year cannot be verified due to lack of written documentation for students removed from cohort. Cause: A deficiency in the internal control system to properly train and monitor the personnel who are assigned to maintain the accuracy of student records and ensure the District obtain all the necessary written documentation for student’s files.

2023-002 – Special Test and Provision – Annual Report Card, High School Graduation Rate – Material Weakness in Internal Control over Compliance/Material Noncompliance ALN and Title: 84.010 Title I Grants to Local Educational Agencies Pass-Through Entity: NM Public Education Department Identifying Number: 24101 Award Year: 2022-23 School Year Condition: The District was not obtaining proper written documentation to substantiate the correct student withdrawal codes for 33 of 40 students tested. The withdrawal form did not have the signature of the school official and contained a different withdrawal code on the withdrawal form than the sample listed in 6 of 40 students tested. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with 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 Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per the May 2023 Compliance Supplement, to remove a student from the cohort, a school or LEA must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or LEA must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. A student who is retained in grade, enrolls in a GED program, or leaves school for any other reason may not be counted as having transferred out for the purpose of calculating graduation rate and must remain in the adjusted cohort (ESEA sections 1111(h)(1)(C)(iii)(II) and 8101(23), (25) (20 USC 6311(h)(1)(C)(iii)(II) and 7801(23), (25))). Per Farmington Municipal School District Board Policy, Section J Students, J-1300 Student Withdrawal from School, a withdrawal form shall be presented to the parent or legal guardian of a student who may or must withdraw from school. The withdrawal form shall include space for the reason for withdrawal and the signature of an official of the school from which the student has withdrawn. Questioned Costs: None noted. Effect: District’s reported High School Graduation Rate for the 2022-2023 school year cannot be verified due to lack of written documentation for students removed from cohort. Cause: A deficiency in the internal control system to properly train and monitor the personnel who are assigned to maintain the accuracy of student records and ensure the District obtain all the necessary written documentation for student’s files.