Finding 34213 (2022-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-01-05

AI Summary

  • Core Issue: The District struggled to provide timely support for low-income student counts reported for Title I eligibility.
  • Impacted Requirements: Compliance with eligibility criteria under Title I, specifically accurate reporting of low-income student data.
  • Recommended Follow-Up: Improve documentation practices and strengthen internal controls to ensure accurate reporting of student counts.

Finding Text

Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Title I Grants to Local Educational Agencies Assistance Listing Number: 84.010 Federal Agency: U.S. Department of Education Federal Award Number: S010A210003 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Significant Deficiency Compliance Requirement: Eligibility CRITERIA According to Title I, ?1113(a)-(c) of the ESEA (20 USC 6313(c)), a local educational agency shall allocate funds to eligible schools in rank order and to determine allocations using the same measure of poverty, which measure shall be the number of children ages five through 17 in poverty counted in the most recent census data approved by the Secretary, the number of children eligible for free and reduced priced lunches under the Richard B. Russell National School Lunch Act, the number of children in families receiving assistance under the state program funded under part A of title IV of the Social Security Act, or the number of children eligible to receive medical assistance under the Medicaid program, or a composite of such indicators, with respect to all school attendance areas in the local educational agency. CONDITION The District was not readily able to provide support for the low-income counts reported on the Title I School Eligibility worksheet. CAUSE The District?s internal controls over eligibility were not properly designed to ensure that the correct low-income students counts were reported to the Arizona Department of Education (ADE). In addition, the District did not maintain proper documentation for the low-income student counts. EFFECT The District was determined to be in compliance with the eligibility of school attendance provisions of Title I, Part A. CONTEXT Upon initial review, low-income counts from the District's records did not agree to counts reported to ADE. After an audit inquiry, the District revised the counts reported and used a previous fiscal year as the base year for student counts to be reported for Title I eligibility, which they were allowed to do per ADE. While the counts reported were ultimately supported and the District was in compliance, the District was not able to provide this support timely and was unaware of the allowability for using a different fiscal year for the support. RECOMMENDATION The District should retain all documentation to support low-income student counts for eligibility purposes, and enhance controls in place to ensure correct student counts are used for reporting purposes. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Corrective Action Plan

Findings and Questioned Costs Related to Federal Awards Finding Number: 2022-001 Contact Person: Dr. Shelley Isai, Assistant Superintendent for Education Services Anticipated Completion Date: November 21, 2022 Planned Corrective Action: The District reviewed the procedures used to determine Title I, Part A eligibility in the Grants Management System as well as a process that includes maintaining records. The process was redefined for the fiscal year 2023 grant application but will change slightly in future years due to a change in the options in criteria available used to determine eligibility for fiscal year 2023 grant applications. To complete this process with accuracy, the Director of Federal Projects will communicate the required eligibility criteria to the Director of Nutrition Services. The Nutrition Services department will provide Federal Projects with the necessary information to complete the process. Supporting documentation for the basis of fiscal year 2023 and the future years will be stored in a shared file and readily accessible for reference or audits. This process has been documented to ensure consistency through any department transitions.

Categories

School Nutrition Programs Student Financial Aid Allowable Costs / Cost Principles Eligibility Reporting Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 610655 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.559 Summer Food Service Program for Children $13.91M
84.010 Title I Grants to Local Educational Agencies $5.74M
84.027 Special Education_grants to States $3.69M
32.009 Covid-19 Emergency Connectivity Fund Program $3.63M
84.367 Supporting Effective Instruction State Grants $749,595
84.287 Twenty-First Century Community Learning Centers $570,169
84.048 Career and Technical Education -- Basic Grants to States $470,486
84.424 Student Support and Academic Enrichment Program $332,434
93.778 Medical Assistance Program $309,074
10.555 Covid-19 National School Lunch Program $162,549
12.357 Rotc Language and Culture Training Grants $125,149
84.425 Covid-19 Education Stabilization Fund $107,997
84.365 English Language Acquisition State Grants $82,440
84.173 Special Education_preschool Grants $27,000
10.555 National School Lunch Program $23,374