Finding 1177937 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-03-11
Audit: 391316
Auditor: NIGRO & NIGRO PC

AI Summary

  • Core Issue: The District lacks proper documentation for students removed from the graduation cohort, leading to potential inaccuracies in graduation rates.
  • Impacted Requirements: ESEA sections 1111 and 8101 mandate that documentation is required for students transferring out to ensure accurate graduation cohort calculations.
  • Recommended Follow-Up: Train staff on documentation requirements, develop a record retention process, and conduct audits of historical removals to ensure compliance and accuracy.

Finding Text

Criteria: ESEA sections 1111(h)(1)(C)(iii)(II) and 8101(23), (25) (20 USC 6311(h)(1)(C)(iii)(II) and 7801(23),(25))) require a local educational agency to have official written documentation that a student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma in order to remove a student from the graduation cohort. A student who is retained in grade, enrolled in a GED program, or leaves school for any other reason may not be counted has having transferred out for the purpose of calculating graduation rate and must remain in the adjusted cohort. Condition: During our testing of compliance and controls over the graduation cohort, we identified two instances in which the District was unable to provide supporting documentation to demonstrate that the students enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. Context: Exceptions were identified for two of the three students sampled. Questioned Costs: None. Cause: Lack of review process to ensure that when a student is removed from the graduation cohort proper documentation is obtained and maintained to support the student’s removal from the graduation cohort. Effect: School site’s graduation rate will be overstated on the school site’s annual report card. Recommendation: We recommend the District train school site staff on allowable documentation to remove students from a graduation cohort as well as regarding other cohort codes. Subsequently the District should assist school sites in developing the record retention process to ensure documentation is available upon request. Lastly, the District should conduct an audit over pupils who have been historically removed from the graduation cohort and ensure that proper documentation is on file to support their removal. If documentation does not exist, then those pupils codes should be revised accordingly. Views of Responsible Officials: The District recognizes the importance of maintaining accurate graduation cohort records and acknowledges the finding. The District is committed to improving procedures to ensure that all cohort removals are supported by appropriate documentation and meet applicable compliance requirements. To address this issue, the District will continue to provide guidance and training to school site staff regarding proper cohort coding practices, allowable supporting records, and documentation standards. In addition, the District will strengthen its review and retention processes to ensure that cohort adjustment documentation is consistently collected, properly reviewed, and maintained in an organized manner for audit purposes. The District will also conduct periodic internal reviews of cohort records to verify the accuracy of both historical and future student removals. Clear procedural expectations and oversight responsibilities will be established to support compliance, improve reporting accuracy, and reduce the risk of recurrence.

Corrective Action Plan

Corrective Actions: • Continue providing guidance and training to school site staff on cohort coding practices, allowable supporting documentation, and documentation standards. • Strengthen documentation collection, review, and retention processes to ensure cohort adjustment support is consistently collected, reviewed for completeness, and maintained in an organized manner for audit purposes. • Conduct periodic internal reviews of cohort records to verify the accuracy of historical and future student removals. • Establish clear procedural expectations and assign oversight responsibilities to improve reporting accuracy and reduce the risk of recurrence. Responsible Department/Person: • Educational Services (Data/ Accountability) and School Site Administration • Fiscal Services - Compliance Oversight • Primary Contacts: Siddhant Bhatta (Executive Director of Fiscal Services); Alma Quijas (Fiscal Compliance Manager) Anticipated Completion Date: March 31, 2026 The District does not anticipate this finding will repeat in the 2025-26 audit due to ongoing training and strengthened procedures.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 1177933 2025-005
    Material Weakness Repeat
  • 1177934 2025-005
    Material Weakness Repeat
  • 1177935 2025-003
    Material Weakness Repeat
  • 1177936 2025-004
    Material Weakness Repeat
  • 1177938 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 SCHOOL BREAKFAST PROGRAM $588,007
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $565,202
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $540,129
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $522,621
16.071 SCHOOL VIOLENCE PREVENTION PROGRAM $500,000
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $484,802
10.555 NATIONAL SCHOOL LUNCH PROGRAM $479,813
10.558 CHILD AND ADULT CARE FOOD PROGRAM $253,419
84.027 SPECIAL EDUCATION GRANTS TO STATES $164,066
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $153,088
84.425 EDUCATION STABILIZATION FUND $104,562
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $28,244
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $1