Audit 387740

Title I – Grants to Local Educational Agencies – Annual Report Card, High School Graduation Rate Criteria: As outlined in the OMB Compliance Supplement, to meet the requirements of the annual report card, high school graduation rate testing, a School District must implement appropriate policies and procedures for documenting the removal of a student from the adjusted cohort. A School District must maintain appropriate written documentation to support the removal of a student from the adjusted cohort. Condition: Based on the above criteria, the School District did not meet the requirements for removing a student from the cohort. Cause: When testing for appropriate documentation for a student who was removed from a cohort, the School District could not provide the appropriate documentation. Additionally, the School District later realized that the incorrect code was used to remove the student from the cohort. Effect: Due to the incorrect coding and lack of supporting documentation, the School District is not in compliance the the annual report card, graduation cohort testing. Recommendation: We recommend the School District monitor the codes used and obtain appropriate documentation for removing a student from the cohort. Views of Responsible Officials: We concur with the finding.

Education Stabilization Fund – Equipment and Real Property Management Criteria: Provisions included in 2 CFR 200.313(d)(1) require that property records must be maintained that include a description of the property, a serial number or other identification number,the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, provisions of 2 CFR 200.313(d)(2) require a physical inventory of the property to be taken and the results reconciled with the property records at least once every two years. Condition: Based on the above criteria, the School District did not meet the requirements maintenance of property records or required physical inventory. Cause: Management oversight. Effect: Failure to maintain required property records and conduct required physical inventories exposes the School District to the risk of error or misue of equipment and/or federal funds. Additionally, the School District is not in compliance with the Uniform Guidance (2 CFR 200). Recommendation: We recommend the School District update its property records and conduct a physical inventory to ensure compliance with program requirements. Views of Responsible Officials: We concur with the finding.