Finding 1201234 (2025-007)

Prior Year Finding: 2024-009 Federal Agency: Department of Education Federal Program: Student Support and Academic Enrichment City Department: Boston Public Schools (BPS) Assistance Listing Number: 84.424 Federal Award Number and Year: S424A220022 (7/1/2022) S424A230022 (7/1/2023) S424A240022 (7/1/2024) Pass-through Agency: Massachusetts Department of Elementary and Secondary Education Pass-through Identifying Number and Year: 309-719226-2023-0035 (10/4/2022-9/30/2024) 309-000548-2024-0035 (9/12/2023-9/30/2025) 309-000548-2025-0035 (9/13/2024-9/30/2026) Compliance Requirement: Special Tests and Provisions – Participation of Private School Children Type of Finding: Material Weakness in Internal Control Over Compliance Criteria or specific requirement: Compliance: For programs under Title VIII of the ESEA (Assistance Listing 84.011, 84.365, 84.367, and 84.424), an agency, consortium, or entity receiving financial assistance under an applicable program must provide eligible private school children and their teachers or other education personnel with equitable services or other benefits under the program. Before an agency, consortium, or entity makes any decision that affects the opportunity of eligible private school children, teachers, and other educational personnel to participate, the agency, consortium, or entity must engage in timely and meaningful consultation with private school officials. Expenditures for services and benefits to eligible private school children and their teachers and other education personnel must be equal on a per-pupil basis to the expenditures for participating public school children and their teachers and other educational personnel, taking into account the number and education needs of the children, teachers and other education personnel to be services (Section 8501 of ESEA (20 USC 7881); 34 CFR sections 299.6 through 299.9). The control of funds used to provide equitable services to eligible private school students, teachers and other educational personnel, and families, and title to materials, equipment, and property purchased with those funds must be in a public agency and the public agency must administer the funds, materials, equipment, and property. The provision of equitable services must be by employees of a public agency or through a contract by the public agency with an individual, association, agency, or organization that is independent of the private school. The contract must be under the control of the public agency (Sections 1117(d), and 8501(d) of ESEA (20 USC 6320(d), and 7881(d); section 18005(b) of the CARES Act; 34 CFR sections 76.661, 200.64(b)(3), 200.67, and 299.9). Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: BPS did not retain the correspondence with private schools to support the student counts reported in their enrollment calculation. Context: For seven of seven private schools selected for testing, BPS was unable to provide documentation to support the student counts for private school children. Cause: BPS’ procedures and internal controls were not sufficient to ensure that all supporting documentation relating to compliance with providing equitable services for eligible private school children is maintained. Effect: BPS is potentially using inaccurate or incomplete data when calculating the amount of funds available for equitable services for eligible private school children. Questioned costs: Undetermined. Recommendation: We recommend BPS review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Views of responsible officials: Management agrees with the finding.