Finding 3969 (2020-008)

Department of Education Impact Aid CFDA #84.041 2020 Award Year Reporting Material Weakness in Internal Controls over Compliance Criteria – Application for Impact Aid – Section 7003 (OMB No. 1810‐0687) – Each year an LEA must submit this application, which provides the following information: counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition – In our testing of the 2020 Impact Aid application, information on construction expenditures were not accurately submitted. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements for information on construction expenditures in the Impact Aid application and controls were not adequately designed. Effect – Failure to properly complete the Impact Aid application for construction expenditures may result in noncompliance with the provisions of applicable requirements of federal programs. Questioned Costs – None reported Context/Sampling – One out of one application was selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – Management should implement written policy procedures to ensure they are properly completing the Impact Aid application for each line item in the application. Views of Responsible Officials – There is no disagreement with the finding. Management has implemented corrective action for reporting in fiscal year 2023.