Finding Text
2025-004: U.S. Department of Education Passed through State of Nevada Department of Education Title I Grants to Local Educational Agencies, 84.010 Eligibility Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 84.010 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control 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. Local educational agencies are required to equitably allocate Part A funds to each participating school, in rank order, on the basis of the number of public-school children from low-income families residing in the area or attending the school (20 USC 6313). Condition: In certain instances, the amounts disbursed to each school was not in accordance with the allocation. In addition, an amendment was made to the original allocation and was not equitably distributed. Cause: Elko County School District did not have sufficient internal controls to ensure eligibility determinations of the amounts disbursed were being appropriately followed. Effect: Noncompliance with eligibility requirements may not be detected. Questioned Costs: None Context/Sampling: Eligibility requirements were tested as a whole for the District. It was noted that there was an amended allocation of $6,228.22 that was not equitably distributed across the eleven eligible schools. In addition, $32,657.07 of the funds were not properly disbursed to the schools in accordance with the allocation or carried forward into the following year’s budget. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District enhance internal controls to ensure eligibility requirements are being followed, specifically regarding allocations and disbursement of funds. Views of Responsible Officials: Management agrees with the finding.