Finding 1201160 (2025-002)

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

AI Summary

  • Core Issue: Missing required documentation for tuition reimbursements, specifically receipts showing cost per credit hour.
  • Impacted Requirements: Internal controls must ensure all program expenditures are properly documented as per employee contracts.
  • Recommended Follow-Up: Implement procedures to ensure all necessary supporting documents are obtained and maintained for compliance.

Finding Text

Federal Award - Special Education Cluster (IDEA) – 84.027 – Special Education – Grants to States Compliance Requirement Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that program expenditures are properly documented and supported. This includes obtaining any required documents noted in the Cooperative’s contracts. Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be submitted as part of its contract with its employees. Context We determined, through testing of expenditures, that three transactions related to tuition reimbursements did not have the full documentation required, per their contract. For those three transactions, the total dollar amount was $3,391. An additional tuition reimbursement transaction existed within the population, so total likely questioned costs is $3,756. Cause The contract with employees for tuition reimbursement was not properly adhered to. Effect Program expenditures did not have sufficient supporting documentation. Recommendation Procedures should be established and implemented to ensure that all supporting documentation be obtained and saved. Views of responsible officials See Corrective Action Plan.

Corrective Action Plan

Special Education (IDEA) Cluster – 84.027 – Special Education – Grants to States – Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be submitted as part of its contract with its employees. Recommendation Procedures should be established and implemented to ensure that all supporting documentation be obtained and saved. Comments on the Finding Recommendation NCKSEC agrees with the findings. A procedure has been put in place to assure that receipts are collected from teachers reflecting the cost per credit hour for the amount the teacher is reimbursed. Receipts are collected before payment is issued. Action Taken Receipts are being collected before payment is issued as reimbursement per credit hour. This action began at the start of the 2025-2026 school year.

Categories

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Programs in Audit

ALN Program Name Expenditures
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $47,095
84.027 SPECIAL EDUCATION GRANTS TO STATES $35,736