Finding 3645 (2023-001)

U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 – Education Stabilization Fund AL #: 84.425 Significant Deficiency Compliance – Special Tests and Provisions Criteria: Budget amendments are required if an LEA has exceeded the cumulative budgeted line items by 10% or more of their current total approved budget. These amendments are submitted through the BUD system and approved by the individual program consultant at DPI. Condition: The district overspent its federal PRC 171 budgeted expenditures for account code 3.6570.171.522 by $474,538 and for account code 3.6570.171.523 by $689,775. These amounts were approximately 27% and 39%, respectively, of the total PRC 171 approved budget. Effect: The Board is not in compliance with the aforementioned criteria. Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to. Questioned costs: None. Identification of a repeat finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that controls be put in place to ensure that budget amendments are completed in accordance with program requirements. Views of responsible officials and planned corrective actions: The Board of Education agrees with this finding and will implement controls to ensure that budget amendments are completed in accordance with program requirements.