Finding Text
Funding Agency: U.S. Department of Education
Title: Impact Aid (Title VII of ESEA)
FAL Number: 84.041
Passthrough: N/A
Award Year: 2023
Criteria: Title 34 Subtitle B Chapter III Part 300 Section 300.202 Use of Amounts
(a) General. Amounts provided to the LEA under Part B of the Act—
(1) Must be expended in accordance with the applicable provisions of this part;
(2) Must be used only to pay the excess costs of providing special education and related services to children with
disabilities, consistent with paragraph (b) of this section; and
(3) Must be used to supplement State, local, and other Federal funds and not to supplant those funds.
Condition: During our review of information provided in the Impact Aid application we identified the following issues:
The District used Impact Aid funds to purchase goods and services which were unrelated to special education.
• The District purchased $946.00 in chlorine and Co2 for the swimming pools.
• The District purchased $69,001.67 in major bleeding first aid kits
Questioned Costs: $69,947.67 This is the value of the two purchases which were for items not related to special education needs.
Cause: The District did not ensure the funds expended were related to special education.
Effect: The District is not in compliance with Federal regulations related to internal control procedures and compliance
requirements in relation to the grant and could put funding in jeopardy or require the District to reimburse the program.
Auditor’s Recommendation: We recommend that all expenditures from the Impact Aid Special Education fund be related to special
education needs. We recommend that the special education supervisor be in the purchase order approval queue for all purchases
from this fund and that no approvals are made for any expenditures not related to special education students’ needs. Responsible official’s view:
Specific corrective action plan for the finding:
The district will implement controls of review for all expenses related to the Impact Aid- Special Education Fund. The
Financial Coordinators along with the Finance Director will ensure that proper budgets are authorized to Departments
in order to ensure that the correct funding is available. These two instances were due to lack of budget within the
Department that caused them to use the incorrect funding source at the time. The district will make sure to include the
Student Support Services Director within the review process and the district will provide additional training regarding
uses of funds.
Timeline for completion of corrective action plan:
The district is already implementing this practice.
Employee positions(s) responsible for meeting the timeline:
Financial Specialist; Special Ed. Coordinator, Special Ed. Director; Grants Specialist; Financial Coordinator’s;
Finance Director
Grants Specialists, CPO, Finance Specialist, Purchasing Specialist, Federal Grants Coordinator, Federal Grants
Specialist