Finding 1095719 (2024-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2024
Accepted
2025-01-15

AI Summary

  • Core Issue: The District is using Impact Aid funds to replace state funding, which is against federal regulations.
  • Impacted Requirements: Compliance with G. Matching, Level of Effort, and Earmarking under federal law (20 USC 7703(d) and 34 CFR Section 222.54).
  • Recommended Follow-Up: Review and strengthen internal controls to monitor and document the use of federal funds to prevent supplanting.

Finding Text

2024-01 Level of Effort Federal Assistance Listing Number: 84.041 Program Title: Impact Aid Federal Agency: U.S. Department of Education Pass-Through Number: N/A Compliance Requirement: G. Matching, Level of Effort, Earmarking Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Questioned Costs: N/A Repeat Finding: No. Condition/Context: The District appears to be supplanting M&O funding with Impact Aid funds. Criteria: (20 USC 7703(d)); 34 CFR Section 222.54; Title 34 Subtitle B Chapter II Part 222 Subpart 222.54. Section 7003(d) funds may not supplant any state funds (either general or special education state aid) that were or would have been available to the LEA for the free, appropriate public education of federally connected children with disabilities counted under Section 7003(d). Cause: Management oversight. Current process and controls are not present to monitor supplanting indicators to ensure compliance is being met. Effect: Noncompliance and internal control weakness that may result in questioned costs. Recommendation: We recommend the District to review its internal control procedures of federal programs to ensure documentation is maintained to support monitoring supplanting of grant funds. Views of Responsible Officials: There is no disagreement with this finding. See the corrective action plan.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519273 2024-003
    Significant Deficiency
  • 519274 2024-003
    Significant Deficiency
  • 519275 2024-003
    Significant Deficiency
  • 519276 2024-002
    Significant Deficiency
  • 519277 2024-001
    Significant Deficiency
  • 1095715 2024-003
    Significant Deficiency
  • 1095716 2024-003
    Significant Deficiency
  • 1095717 2024-003
    Significant Deficiency
  • 1095718 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $6.15M
84.027 Special Education Grants to States $615,234
10.553 School Breakfast Program $521,362
84.060 Indian Education Grants to Local Educational Agencies $334,239
15.130 Indian Education Assistance to Schools $263,952
16.839 Stop School Violence $193,049
84.371 Comprehensive Literacy Development $183,721
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $180,007
94.434 Preschool Development Grants $96,667
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,573
84.048 Career and Technical Education -- Basic Grants to States $69,078
10.555 National School Lunch Program $68,975
93.778 Medical Assistance Program $67,992
10.665 Schools and Roads - Grants to States $53,110
84.358 Rural Education $47,258
84.010 Title I Grants to Local Educational Agencies $27,647
84.424 Student Support and Academic Enrichment Program $27,102
84.365 English Language Acquisition State Grants $25,063
10.559 Summer Food Service Program for Children $22,993
84.425 Education Stabilization Fund $6,565
84.173 Special Education Preschool Grants $3,486