Audit 395854

Federal Award - Special Education Cluster (IDEA) – 84.027 – Special Education – Grants to States Compliance Requirement Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that program expenditures are properly documented and supported. This includes obtaining any required documents noted in the Cooperative’s contracts. Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be submitted as part of its contract with its employees. Context We determined, through testing of expenditures, that three transactions related to tuition reimbursements did not have the full documentation required, per their contract. For those three transactions, the total dollar amount was $3,391. An additional tuition reimbursement transaction existed within the population, so total likely questioned costs is $3,756. Cause The contract with employees for tuition reimbursement was not properly adhered to. Effect Program expenditures did not have sufficient supporting documentation. Recommendation Procedures should be established and implemented to ensure that all supporting documentation be obtained and saved. Views of responsible officials See Corrective Action Plan.