Finding 1162896 (2024-007)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-11-25
Audit: 372554
Organization: City of Peabody (MA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The City failed to provide timely documentation for determining school eligibility for Title I grants, impacting compliance with federal requirements.
  • Impacted Requirements: Grantees must rank schools by poverty percentage and ensure equitable services for private and homeless students.
  • Recommended Follow-Up: Implement internal controls to organize and retain eligibility documentation for audits, ensuring compliance with grant requirements.

Finding Text

Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Federal Assistance Listing No. 84.010 2024-007: Eligibility of Schools and Allocations to Schools Compliance Requirement: Eligibility Type of Finding: Compliance and Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: Grantees must determine which schools or school attendance areas are eligible to participate in the program. When determining eligibility, grantees must select a poverty measure from among one of the allowable data sources. Grantees must serve eligible schools or attendance areas in rank order according to their percentage of poverty. Grantees must also provide equitable services to eligible private school students and homeless students prior to allocating funds to eligible public schools using similar allowable data sources. Condition: The City was required to determine which schools or school attendance areas, including private school students and homeless students, were eligible to participate in the grant program. The City was also required to ensure that eligible schools or school attendance areas were served in rank order in accordance with their percentage of poverty. Supporting documentation that would demonstrate the City’s compliance with determinations of eligibility was not available upon request and was not provided in a timely manner. Context: The City did not provide documentation that would demonstrate the compliance of its eligibility determinations or allocations to schools in a timely manner. Cause: Management has not established guidelines and procedures to ensure that documentation regarding eligibility determinations and allocations is retained and filed in an organized manner that is made readily available for inspection during the audit. Effect: The City has not complied with the grant requirements, which could result in improper spending of grant funding.. Questioned Costs: None reported. Repeat finding: This matter was reported as a finding in the previous year as finding 2023-004. Recommendation: The City should implement internal control procedures to ensure compliance with all grant requirements including the completion and retention of all documentation regarding eligibility determinations and allocations to schools. The documentation should be filed in an organized manner and should be readily available for inspection during the audit. Views of Responsible Officials: See Corrective Action Plan. U.S. DEPARTMENT OF EDUCATION Passed through Massachusetts Department of Elementary and Secondary Education

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The School District will implement internal control procedures to ensure that the required documentation is completed, retained and maintained in an organized manner. Management plans to implement these procedures in 2026.

Categories

Allowable Costs / Cost Principles Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1162883 2024-005
    Material Weakness Repeat
  • 1162884 2024-005
    Material Weakness Repeat
  • 1162885 2024-005
    Material Weakness Repeat
  • 1162886 2024-005
    Material Weakness Repeat
  • 1162887 2024-005
    Material Weakness Repeat
  • 1162888 2024-005
    Material Weakness Repeat
  • 1162889 2024-005
    Material Weakness Repeat
  • 1162890 2024-005
    Material Weakness Repeat
  • 1162891 2024-006
    Material Weakness Repeat
  • 1162892 2024-006
    Material Weakness Repeat
  • 1162893 2024-006
    Material Weakness Repeat
  • 1162894 2024-007
    Material Weakness Repeat
  • 1162895 2024-007
    Material Weakness Repeat
  • 1162897 2024-008
    Material Weakness Repeat
  • 1162898 2024-008
    Material Weakness Repeat
  • 1162899 2024-008
    Material Weakness Repeat
  • 1162900 2024-008
    Material Weakness Repeat
  • 1162901 2024-008
    Material Weakness Repeat
  • 1162902 2024-008
    Material Weakness Repeat
  • 1162903 2024-008
    Material Weakness Repeat
  • 1162904 2024-008
    Material Weakness Repeat
  • 1162905 2024-008
    Material Weakness Repeat
  • 1162906 2024-008
    Material Weakness Repeat
  • 1162907 2024-009
    Material Weakness Repeat
  • 1162908 2024-009
    Material Weakness Repeat
  • 1162909 2024-009
    Material Weakness Repeat
  • 1162910 2024-009
    Material Weakness Repeat
  • 1162911 2024-009
    Material Weakness Repeat
  • 1162912 2024-009
    Material Weakness Repeat
  • 1162913 2024-009
    Material Weakness Repeat
  • 1162914 2024-009
    Material Weakness Repeat
  • 1162915 2024-009
    Material Weakness Repeat
  • 1162916 2024-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.78M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $2.01M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.11M
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $393,973
10.553 SCHOOL BREAKFAST PROGRAM $385,499
16.922 EQUITABLE SHARING PROGRAM $163,653
10.555 COVID-19 NATIONAL SCHOOL LUNCH PROGRAM $145,716
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $120,925
16.839 STOP SCHOOL VIOLENCE $58,775
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $47,699
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $27,779
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $27,750
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $27,500
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $23,767
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $20,489
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $19,622
84.027 SPECIAL EDUCATION GRANTS TO STATES $16,888
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $14,869
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $13,570
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $11,129
84.425 COVID-19 EDUCATION STABILIZATION FUND $10,000
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $9,862
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $9,620
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $8,400
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $7,438
84.027 COVID-19 SPECIAL EDUCATION GRANTS TO STATES $2,853
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $2,507
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $1,200
84.173 COVID-19 SPECIAL EDUCATION PRESCHOOL GRANTS $677
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $450