Finding 1174631 (2025-002)

Material Weakness Repeat Finding
Requirement
Activities Allowed/Unallowed
Questioned Costs
-
Year
2025
Accepted
2026-02-19
Audit: 388138
Organization: City of Salem School District (NJ)

AI Summary

  • Core Issue: Reimbursement requests and final reports for federal programs were not properly supported by School District records.
  • Impacted Requirements: Non-compliance with Uniform Guidance on allowable activities and reporting standards.
  • Recommended Follow-up: Ensure all records align with submitted requests and reports, and strengthen internal controls in the finance office.

Finding Text

Information on the Federal Program U.S. Department of Education – Passed-through New Jersey Department of Education: Special Education Cluster (I.D.E.A.): Special Education Grants to States (Basic) Assistance Listing No. 84.027 7/01/2024 – 9/30/2025 Special Education Preschool Grants (Preschool) Assistance Listing No. 84.173 7/01/2024 – 9/30/2025 Education Stabilization Fund (ESF): ESSER III Assistance Listing No. 84.425 3/13/2020 – 9/30/2024 ESSER III – Summer Learning and Enrichment Assistance Listing No. 84.425 3/13/2020 – 9/30/2024 ESSER II – Homeless Assistance Listing No. 84.425 4/23/2021 – 9/30/2023 Criteria or Specific Requirement Uniform Guidance compliance requirements for (A) Activities Allowed or Unallowed and (L) Reporting dictate the determination whether federal awards were expended only for allowable activities (A) and determine whether required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements (L). Condition The reimbursement requests, final reports, specific charges and approved budget amendments / appropriations were not always supported by or in agreement with School District workpapers. Questioned Costs Undetermined. Context During the single audits performed over the above referenced Federal Programs, the selected reimbursement requests, final reports, specific allowable charges and approved budget amendments / appropriations could not be properly reconciled and supported by School District records. Effect or Potential Effect Non-compliance with Uniform Guidance compliance requirements (A) Activities Allowed or Unallowed and (L) Reporting. Cause Various breakdowns in the internal controls of the finance office. Identification as a Repeat Finding See Finding 2024-002. Recommendation The School District should maintain records that agree to submitted reimbursement requests, final reports, approved or amended budget appropriations, and identify specific charges. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Corrective Action Plan

The School District should always reconcile its reimbursement requests with documented workpapers. The School Business Administrator will prepare and retain documentation for each and every reimbursements request, etc. School Business Administrator / Asst. School Business Administrator. 2025-2026 Fiscal year.

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1174625 2025-002
    Material Weakness Repeat
  • 1174626 2025-002
    Material Weakness Repeat
  • 1174627 2025-002
    Material Weakness Repeat
  • 1174628 2025-002
    Material Weakness Repeat
  • 1174629 2025-002
    Material Weakness Repeat
  • 1174630 2025-002
    Material Weakness Repeat
  • 1174632 2025-003
    Material Weakness Repeat
  • 1174633 2025-003
    Material Weakness Repeat
  • 1174634 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 SCHOOL BREAKFAST PROGRAM $437,343
84.027 SPECIAL EDUCATION GRANTS TO STATES $384,285
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $272,056
10.555 NATIONAL SCHOOL LUNCH PROGRAM $134,971
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $97,035
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $78,804
93.778 Medical Assistance Program $54,400
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $44,629
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $33,735
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $27,504
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $13,562
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $9,630
84.425 EDUCATION STABILIZATION FUND $2,394
10.649 PANDEMIC EBT ADMINISTRATIVE COSTS $643