Audit 402838

Reporting for Impact Aid Federal program: ALN 84.041 Impact Aid Federal agency: U.S. Department of Education Pass-through entity: NA Criteria: As a grantee under Impact Aid (ALN 84.041), the District is required to submit an annual application to the U.S. Department of Education that is accurate and supported by underlying enrollment and financial records, in accordance with program regulations and 2 CFR 200. Condition: The District submitted the required annual Impact Aid application; however, key data elements, including total membership enrolled in state‑approved education programs for children with disabilities, did not agree to the underlying student membership and accounting records. Cause: Controls to ensure the annual application is reconciled to the underlying accounting data do not exist. Effect: Because the application was not reconciled to supporting records, the District cannot demonstrate that the membership data reported to the U.S. Department of Education were accurate, which could result in improper Impact Aid payment amounts. Questioned costs: None noted. Context: Testing was performed over the total population of required reports. Statistical sampling was not used. Recommendation: Management should implement procedures to reconcile the annual application to the underlying accounting data. Views of responsible officials and planned corrective action: Management agrees with this finding and is working on implementing an annual application reconciliation process as staffing allows.