Finding 1200658 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-30

AI Summary

  • Core Issue: Professional development stipends totaling $14,300 were paid to non-Title I teachers without proper documentation or Board approval.
  • Impacted Requirements: Costs must comply with 2 CFR Part 200 and be adequately documented to be allowable under Federal awards.
  • Recommended Follow-Up: Implement procedures for Board approval of stipends and maintain documentation for audit purposes.

Finding Text

For a cost to be allowable, it must (1) be for a purpose the specific award permits and (2) fall within 2 CFR Part 200, Subpart E Cost Principles. Further, 2 CFR 200.403(g) states, in part, that except where otherwise authorized by statute, costs must be adequately documented to be allowable under Federal awards. Additionally, sound internal controls over the disbursement of Federal funds is pertinent to ensure that disbursements are accurate, complete, and in compliance with applicable laws and regulations. During fiscal year 2025, we noted that professional development stipends in the amount of $14,300 were paid out to teachers in the middle school and high school buildings, both of which were non-Title I buildings. Further, all stipend amounts paid for professional development trainings were not documented as being approved by the Board or any other professional development committee(s). The School District should adopt procedures to ensure that all costs are in accordance with the Code of Federal Regulations. Additionally, we recommend that professional development stipends amounts be approved by the Board. Supporting documentation of the review and approval by the Board should be maintained for a proper audit trail.

Corrective Action Plan

To strengthen compliance moving forward, the newly appointed Federal Programs Coordinator has attended a federal programs conference, and the Treasurer has completed grants management training through OASBO. The District will continue to pursue ongoing training opportunities to ensure adherence to federal grant requirements, including proper allowability, documentation, and internal controls over disbursements.

Categories

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Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $367,892
10.553 SCHOOL BREAKFAST PROGRAM $220,397
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $177,734
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $84,754
10.555 NATIONAL SCHOOL LUNCH PROGRAM $72,835
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $41,067
84.358 RURAL EDUCATION $23,185
84.425 EDUCATION STABILIZATION FUND $6,629
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $5,657
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $689