Finding 1175844 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-02

AI Summary

  • Core Issue: The District submitted inaccurate exit codes for student withdrawals due to errors in documentation.
  • Impacted Requirements: Compliance with the Level of Effort – Maintenance of Effort criteria under Uniform Guidance is not being met.
  • Recommended Follow-Up: Establish procedures for accurate documentation and reporting to improve compliance and prevent future errors.

Finding Text

Program: Title I Grants to Local Educational Agencies (“Title I”) ALN: 84.010 Compliance Requirement: Level of Effort – Maintenance of Effort Criteria: Management is responsible for internal controls over compliance with Level of Effort – Maintenance of Effort in accordance with the Uniform Guidance. Condition: During our June 30, 2025 testing of the Title I program, we found errors in student withdrawal forms and exit codes reported to CDE. Effect: The District does not have the proper procedures set up to ensure exit codes are accurate in the system and therefore submitted inaccurate data to the Colorado Department of Education. Cause: The District experienced significant turnover in its Finance Department, and staff is all fairly new. Although improvement was made to obtain withdrawal forms, not all of the exit codes recorded in the system were correct. Repeat Finding: Yes. Questioned Costs: None. Recommendation: We recommend the District establish procedures to ensure appropriate documentation is retained and recorded in the system to allow for consistent and accurate reporting in accordance with the Uniform Guidance. View of Responsible Officials: The District agrees with the finding. Please see separately prepared corrective action plan.

Corrective Action Plan

Compliance Requirement: Special Tests and Provisions Questioned Costs: None. Corrective Action: In February 2026, the District was notified that inadequate supporting documentation could not be located relating to the graduation cohort requirements specifically regarding student withdrawal forms and exit codes reported to the Colorado Department of Education (CDE). The lack of documentation was primarily attributable to significant staff turnover during Fiscal Years 2024 and 2025. This turnover resulted in inconsistencies in record retention practices and gaps in documentation management procedures associated with student withdrawal records and related reporting requirements. To address this issue, the District is implementing corrective measures to strengthen internal controls and ensure ongoing compliance. The District is actively developing and formalizing written procedures that clearly define documentation requirements, roles and responsibilities, and timelines related to student withdrawals and exit coding. All supporting documentation will be uploaded at the time of record creation into a centralized electronic system for each student. The District is also establishing a system of redundancy, including supervisory review and periodic internal checks, to ensure completeness, accuracy, and retention of required documentation. These controls are designed to prevent future documentation deficiencies and to ensure full compliance with state reporting requirements. The District is committed to maintaining accurate records and strengthening internal processes to support continued compliance requirements. Personnel Responsible for Corrective Action: Kathryn Sampson, Executive Director – Finance & Operations Anticipated Completion Date: February 2026

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $525,695
10.555 NATIONAL SCHOOL LUNCH PROGRAM $489,731
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $369,088
10.553 SCHOOL BREAKFAST PROGRAM $150,893
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $123,104
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $62,462
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $36,533
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $27,751
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $24,193
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $22,647
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $15,746
84.425 EDUCATION STABILIZATION FUND $15,262
10.649 PANDEMIC EBT ADMINISTRATIVE COSTS $628