Finding 1173400 (2025-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-13

AI Summary

  • Core Issue: The district exceeded its budget for federal program PRC 103 by $64,732, violating compliance criteria.
  • Impacted Requirements: Budget amendments are mandatory when spending exceeds 10% of the approved budget.
  • Recommended Follow-Up: Implement controls to ensure timely budget amendments are submitted and approved as required.

Finding Text

U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: Supporting Effective Instruction AL #: 84.367 SIGNIFICANT DEFICIENCY Compliance – Special Tests and Provisions Criteria: Budget amendments are required if an LEA has exceeded the cumulative budgeted line items by 10% or more of their current total approved budget. These amendments are submitted through the LBAAS system and approved by the individual program consultant at DPI. Condition: The district overspent its federal PRC 103 (Supporting Effective Instruction) budgeted expenditures for account code 3.5110.103.135 by $64,732 which is approximately 17% of the total PRC 103 approved budget. Effect: The Board is not in compliance with the aforementioned criteria. Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to. Questioned costs: None. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: We recommend that controls be put in place to ensure that budget amendments are completed in accordance with program requirements. Views of responsible officials and planned corrective actions: The Board of Education agrees with this finding. Management will take the necessary actions as described in the Corrective Action Plan.

Corrective Action Plan

Name of Contact Person: Daniel Nolan, Finance Officer Corrective Action Plan: The Board of Education will implement controls to ensure that federal budget amendments are completed in accordance with program requirements. Proposed Completion Date: Immediately

Categories

Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 1173399 2025-004
    Material Weakness Repeat
  • 1173401 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $3.02M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.96M
10.553 SCHOOL BREAKFAST PROGRAM $1.37M
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $653,340
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $377,978
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $181,142
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $141,987
84.011 MIGRANT EDUCATION_STATE GRANT PROGRAM $116,019
12.000 ROTC $107,868
84.060 INDIAN EDUCATION_GRANTS TO LOCAL EDUCATIONAL AGENCIES $81,814
84.358 RURAL EDUCATION $65,559
84.173 SPECIAL EDUCATION_PRESCHOOL GRANTS $42,677
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $25,148
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $14,713
84.425 EDUCATION STABILIZATION FUND $9,944
84.027 SPECIAL EDUCATION_GRANTS TO STATES $2,988