Finding 1089565 (2024-005)

2024-005 Department of Education Federal Financial Assistance Listing 84.041 Impact Aid Reporting Material Weakness in Internal Control over Compliance Criteria – Uniform Guidance sets forth standards over reporting on the application for Impact Aid, specifically related to enrollment numbers. Condition – In our testing of reporting, the District lacked a system of internal control for the review and approval of the Impact Aid application, specifically relating to enrollment numbers included on the application. During the course of the engagement, it was noted that the Impact Aid application had certain enrollment numbers understated by 29 students. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance, and controls were not adequately designed to ensure compliance with all of these requirements. Effect – Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs – None reported. Context/Sampling – Overall compliance requirement. Repeat Finding from Prior Years – No. Recommendation – We recommend that management establish controls to review and approve all reporting required under Uniform Guidance. Views of Responsible Officials – There is no disagreement with the audit finding.