FAC Explorer

Finding 1168877 (2025-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-13
Audit: 381239
Organization: Nash Board of Education (NC)
Auditor: ANDERSON SMITH & WIKE PLLC

AI Summary

  • Core Issue: The Board charged $29,164.94 more in indirect costs to the grant than allowed.
  • Impacted Requirements: Controls must ensure indirect costs do not exceed the allowable amount set by the granting agency.
  • Recommended Follow-Up: Improve management oversight to prevent future compliance issues with cost principles.

Finding Text

U.S. Department of Education, Passed Through the N.C. Department of Public Instruction, Program Name: School Mental Health Support – AWARE/ACTIVATE (AL #: 93.243), SIGNIFICANT DEFICIENCY, Compliance – Allowable Costs/Cost Principles, Criteria: Controls should ensure that the amount of indirect cost charged to the grant does not exceed the amount allowable by the granting agency. Condition: Per our testing, allowable indirect costs were $46,171.27 and the amount of indirect cost budgeted for the program was $43,225.97. The actual amount of indirect cost charged to the grant was $75,336.21. Effect: The Board charged $29,164.94 more in indirect cost to the grant than was allowable. Cause: Lack of oversight by management. Questioned costs: $29,164.94

Corrective Action Plan

Name of Contact Person: Shanice Sanders, Executive Director of School Finance, Corrective Action Plan: The Board of Education will implement controls and procedures to ensure that indirect costs charged to federal programs do not exceed the maximum amount allowable by the granting agencies. Proposed Completion Date: Immediately

Categories

Allowable Costs / Cost Principles Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $6.43M
10.553 SCHOOL BREAKFAST PROGRAM $1.76M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES_PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $1.04M
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $604,645
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $555,022
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $368,561
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $306,272
12.000 ROTC $150,794
84.011 MIGRANT EDUCATION_STATE GRANT PROGRAM $148,599
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $99,845
84.323 SPECIAL EDUCATION - STATE PERSONNEL DEVELOPMENT $77,452
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $75,748
10.555 NATIONAL SCHOOL LUNCH PROGRAM $72,360
84.173 SPECIAL EDUCATION_PRESCHOOL GRANTS $15,253
84.060 INDIAN EDUCATION_GRANTS TO LOCAL EDUCATIONAL AGENCIES $13,130
10.185 Local Food for Schools Cooperative Agreement Program $7,423
84.425 EDUCATION STABILIZATION FUND $3,914
84.027 SPECIAL EDUCATION_GRANTS TO STATES $1,364