Finding 1164507 (2025-005)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2025
Accepted
2025-12-11

AI Summary

  • Core Issue: Incorrect data was entered into the Maintenance of Effort Calculator, risking compliance with federal funding requirements.
  • Impacted Requirements: Compliance with 34 CFR Section 299.5, which mandates maintaining a certain fiscal effort for educational funding.
  • Recommended Follow-Up: Implement a review process for the Maintenance of Effort Calculator inputs to ensure accuracy before submission.

Finding Text

Maintenance of Effort Calculator Information on Federal Program: U.S. Department of Education, Title I Grants to Local Educational Agencies (Title I, Part A of the ESEA), Assistance Listing number 84.010. Criteria: 34 CFR Section 299.5 stipulates that a LEA receiving funds under an applicable program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90% of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Statement of Condition: During our review of the Maintenance of Effort Calculator, it was noted that the amounts used in the calculation were incorrectly input. Statement of Cause: The District did not have appropriate internal controls over compliance to reconcile the information put into the calculator with the underlying accounting records. Statement of Effect: The District could be out of compliance with 34 CFR Section 299.5(a) which could jeopardize funding under this program. Questioned Costs: None Perspective Information: As part of our testing, we review the Maintenance of Effort Calculator to ensure that the District met the requirements. As part of our review, we did input the correct amounts into the calculator, and with the correct amounts, the District met the Maintenance of Effort requirement. Repeat Finding: No Recommendation: We recommend that the Maintenance of Effort Calculator inputs are reviewed prior to submission to ensure that the data is accurate. Views of the Responsible Officials and Planned Corrective Actions: The Business Manager and Treasurer will review the Maintenance of Effort Calculator prior to submission.

Corrective Action Plan

The District will ensure all data is reviewed and double checked by the Treasurer, Business Manager, or Superintendent. Implementation Date: 6/30/26 Responsibility: Taryn Breen, Business Manager, Treasurer - TBD, G. Mike Apostol, Superintendent

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164506 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $377,153
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $284,488
10.553 SCHOOL BREAKFAST PROGRAM $110,095
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $45,055
84.425 EDUCATION STABILIZATION FUND $32,519
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $19,705
10.555 NATIONAL SCHOOL LUNCH PROGRAM $16,079
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $10,284
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $346