FAC Explorer

Finding 388348 (2023-006)

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Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 300126
Organization: Department of Education, State of Hawaii (HI)
Auditor: Accuity LLP

AI Summary

  • Core Issue: The program exceeded the allowed limits for state activities and administration costs, violating federal earmarking requirements.
  • Impacted Requirements: Noncompliance with Title 3, Part A of ESSA and Title 2 U.S. CFR Part 200 due to inadequate financial tracking.
  • Recommended Follow-Up: Ensure program personnel adhere to established policies and procedures to meet earmarking requirements and address staffing issues.

Finding Text

Questioned Costs $- Finding No. 2023‐006: Matching, Level of Effort and Earmarking (Control Deficiency) Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.365A – English Language Acquisition State Grants Condition During our audit, we noted the following instances of noncompliance: -The program expended greater than 5% of federal funds awarded for state level activities. -The program expended the greater of 2.5% or $175,000 in federal funds awarded on administration costs. Criteria Pursuant to Title 3, Part A, of the ESSA, the Department can reserve up to 5% of their awarded federal program funds to carry out state activities. The Department can also reserve the greater of 2.5% of their awarded federal program funds or $175,000 for administration costs. Cause Due to turnover in critical positions, the lack of adequate financial reporting to calculate and track compliance with the required earmarking requirements may be attributed to general oversight by the program personnel. Effect Failure to adhere to the program’s requirements exposes the Department to an undue risk of noncompliance with the requirements of Title 2 U.S. CFR Part 200. Context A sample of 2 awards were selected for audit from a population of 2 awards which terminated during fiscal 2023. Our test found two instances in which state activities and administration costs were greater than earmarking requirements. Our sample was a statistically valid sample. Repeat Finding This is not a repeat finding. Recommendation We recommend that the program personnel follow the policies and procedures established to comply with earmarking requirements. Cause and View of Responsible Officials We were informed that program personnel were aware of the noncompliance. However, due to turnover in critical positions, they were unable to correct the noncompliance by June 30, 2023.

Corrective Action Plan

2023-006 Matching, Level of Effort and Earmarking – Control Deficiency View of Responsible Officials The Department generally agrees with the findings and recommendations. However, it should be noted that the earmarking findings described here are issues that were identified by the Department in June 2023 (prior to being audited) and a corrective action plan was put into place at that time. It had not yet been completed at the time of the audit and so was not reflected in the grant years that were used for this audit. Corrective Action Plan Note: As stated above, the earmarking issues raised by the audit were issues that had come to our attention in June of 2023. A corrective plan was established at that time. The steps for correcting these issues were begun June 21, 2023 but had not yet been completed at the time of the audit. The Corrective Action Plan being presented here is a modified version of this plan that encompasses the original plan as well as documents steps to address related issues raised in this audit. [TABLE] Contact Person: Kathleen Grondin, Title III Specialist English Learners Office Office of Student Support Services Anticipated Completion Date: July 30, 2024

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $50.00M
84.010 Title I Grants to Local Educational Agencies $48.49M
84.371 Striving Readers $11.46M
84.367 Improving Teacher Quality State Grants $9.02M
84.424 Student Support and Academic Enrichment Program $6.79M
84.287 Twenty-First Century Community Learning Centers $6.40M
84.027 Special Education_grants to States $5.36M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $5.33M
15.875 Economic, Social, and Political Development of the Territories $4.53M
10.555 National School Lunch Program $4.46M
93.558 Temporary Assistance for Needy Families $4.03M
84.365 English Language Acquisition State Grants $3.73M
84.041 Impact Aid $3.70M
84.002 Adult Education - Basic Grants to States $3.20M
84.048 Career and Technical Education -- Basic Grants to States $2.77M
45.310 Grants to States $2.31M
84.011 Migrant Education_state Grant Program $2.09M
12.558 Department of Defense Impact Aid (supplement, Cwsd, Brac) $1.89M
84.369 Grants for State Assessments and Related Activities $1.63M
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1.58M
10.582 Fresh Fruit and Vegetable Program $1.27M
84.425 Education Stabilization Fund $1.16M
10.560 State Administrative Expenses for Child Nutrition $871,179
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $824,788
10.558 Child and Adult Care Food Program $694,366
84.372 Statewide Longitudinal Data Systems $625,241
84.184 Safe and Drug-Free Schools and Communities_national Programs $476,839
84.196 Education for Homeless Children and Youth $373,480
84.259 Native Hawaiian Career and Technical Education $283,634
12.600 Community Investment $221,906
84.362 Native Hawaiian Education $166,796
84.173 Special Education_preschool Grants $115,885
93.600 Head Start $108,990
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $101,574
10.574 Team Nutrition Grants $94,051
84.424 Trauma Recovery Demonstration Grant Program $91,685
84.144 Migrant Education_coordination Program $84,339
10.541 Child Nutrition-Technology Innovation Grant $66,027
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $62,221
84.368 Grants for Enhanced Assessment Instruments $60,993
10.579 Child Nutrition Discretionary Grants Limited Availability $57,926
10.559 Summer Food Service Program for Children $53,822
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $25,000
84.365 Asian American and Pacific Islander Data Disaggregation Initiative $20,110
10.645 Farm to School State Formula Grant $15,674
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $3,799