Finding 1168464 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-08
Audit: 380251

AI Summary

  • Core Issue: Travel costs must be justified and align with both federal regulations and the District's travel policy.
  • Impacted Requirements: Costs must be reasonable, necessary for the federal award, and documented properly to ensure compliance.
  • Recommended Follow-Up: Ensure all travel expenses are supported by required documentation and prior approvals before charging to federal funds.

Finding Text

Per 2 CFR 200.475: “(a) General. Travel costs include the transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business of the [District]. These costs may be charged on an actual cost basis, on a per diem or mileage basis, or on a combination of the two, provided the method used is applied to an entire trip and not to selected days of the trip. The method used must be consistent with those normally allowed in like circumstances in the [District]'s other activities and in accordance with the [District]'s established written policies. Notwithstanding the provisions of 2 CFR 200.444, travel costs of officials covered by that section are allowable with the prior written approval of the Federal agency or pass-through entity when they are specifically related to the Federal award. (b) Lodging and subsistence. Costs incurred by employees and officers for travel, including costs of lodging, other subsistence, and incidental expenses, must be considered reasonable and otherwise allowable only to the extent such costs do not exceed charges normally allowed by the [District] in its regular operations as the result of the [District]'s established written policy. In addition, if these costs are charged directly to the Federal award documentation must justify that: (1) Participation of the individual is necessary for the Federal award; and (2) The costs are reasonable and consistent with the [District]'s established written policy.” In addition, per the District’s travel expense policy, “When federal funds are used for travel, the district must be able to justify the necessity of the travel to the federal program and demonstrate that the costs incurred were reasonable and consistent with the district's travel policy. Therefore, district staff or Board members using federal funds for travel must provide sufficient documentation to the superintendent or designee who oversees the applicable federal program. Such documentation may include, but is not limited to, the following: (1) An agenda of the event attended; (2) A list of attendees at the event; (3) A written statement justifying the expense; (4) Evidence of prior written approval for the expense. The superintendent or designee may require additional information when he or she determines it is necessary.”

Corrective Action Plan

The District has revised and resubmitted the Final Expenditure Report for the Title I School Improvement (a) grant and will repay the unallowable costs to DESE. In addition the District will ensure that its procedures and the Uniform Guidance requirements are being followed regarding allowable travel expenses.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Special Tests & Provisions

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $4.54M
84.425 EDUCATION STABILIZATION FUND $2.99M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $2.35M
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.89M
10.553 SCHOOL BREAKFAST PROGRAM $982,455
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $617,906
10.558 CHILD AND ADULT CARE FOOD PROGRAM $524,628
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $337,917
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $263,207
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $121,788
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $102,911
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $55,436
12.000 Reserve Officer Training Corps $54,706
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $52,040
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $27,028