Audit 5641

U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 – Education Stabilization Fund AL #: 84.425 Significant Deficiency Compliance – Special Tests and Provisions Criteria: Budget amendments are required if an LEA has exceeded the cumulative budgeted line items by 10% or more of their current total approved budget. These amendments are submitted through the BUD system and approved by the individual program consultant at DPI. Condition: The district overspent its federal PRC 171 budgeted expenditures for account code 3.6570.171.522 by $474,538 and for account code 3.6570.171.523 by $689,775. These amounts were approximately 27% and 39%, respectively, of the total PRC 171 approved budget. Effect: The Board is not in compliance with the aforementioned criteria. Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to. Questioned costs: None. Identification of a repeat finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that controls be put in place to ensure that budget amendments are completed in accordance with program requirements. Views of responsible officials and planned corrective actions: The Board of Education agrees with this finding and will implement controls to ensure that budget amendments are completed in accordance with program requirements.

U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 – Education Stabilization Fund AL #: 84.425 Significant Deficiency Compliance – Special Tests and Provisions Criteria: Budget amendments are required if an LEA has exceeded the cumulative budgeted line items by 10% or more of their current total approved budget. These amendments are submitted through the BUD system and approved by the individual program consultant at DPI. Condition: The district overspent its federal PRC 171 budgeted expenditures for account code 3.6570.171.522 by $474,538 and for account code 3.6570.171.523 by $689,775. These amounts were approximately 27% and 39%, respectively, of the total PRC 171 approved budget. Effect: The Board is not in compliance with the aforementioned criteria. Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to. Questioned costs: None. Identification of a repeat finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that controls be put in place to ensure that budget amendments are completed in accordance with program requirements. Views of responsible officials and planned corrective actions: The Board of Education agrees with this finding and will implement controls to ensure that budget amendments are completed in accordance with program requirements.