2025-002 U.S. Department of Housing and Urban Development, for the period July 1, 2024, through June 30, 2025, Assistance Listing #14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Criteria: Non-federal entities are required to report timely and accurate information to awarding agencies as part of grant acceptance. In addition, under the requirements of reporting, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: Performance reports were not submitted within 30 calendar days of the end of the reporting period. Cause: A misunderstanding of the requirements delayed the submission of the required performance reports. Effect: Failure to complete reports on time could result in the loss of future federal funding. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: We recommend that the School Unit implement procedures to ensure reports are completed accurately and in a timely manner to meet the federal requirements as outlined in the grant agreements.
2025-003 U.S. Department of Education, For the period July 1, 2024, through June 30, 2025, Assistance Listing #84.010 Title IA Disadvantaged Criteria: Under Title I’s high school graduation rate requirements, to remove a student from a cohort, a school must confirm in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. Grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Unit currently has informal controls over the process of removing students from their cohorts. Cause: Although the School Unit has maintained documentation of the students removed from their cohorts, there are limited and inconsistent controls over the removal of students from their cohorts. Effect: The School Unit runs the risk of erroneously removing students from their cohorts, which could lead to non-compliance with the requirements of Title I, and result in a loss of federal funding. Recommendations: We recommend that the School Unit implement internal control procedures to verify student removals from their cohorts. At a minimum, this should include management review and approval of all removals.