FAC Explorer

Finding 496636 (2023-012)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-09-12
Audit: 319431
Organization: City of Boston (MA)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Boston Public Schools did not adequately document the decrease in enrollment of children with disabilities, impacting their compliance with the Maintenance of Effort (MOE) requirement.
  • Impacted Requirements: The lack of sufficient documentation violates the compliance standard for maintaining funding levels for special education as outlined in IDEA regulations.
  • Recommended Follow-Up: BPS should strengthen policies and procedures for tracking and documenting allowable exceptions to ensure compliance with MOE requirements in the future.

Finding Text

Finding number: 2023 012 Federal agency: U.S. Department of Education Pass through agency: Commonwealth Department of Elementary and Secondary Education Program: Special Education (IDEA) Cluster ALN #: 84.027; 84.173 Award number: Various Award year: Various Finding: Internal Control over Maintenance of Effort Prior Year Finding: No Type of Finding: Significant Deficiency Criteria LEAs – Local Maintenance of Effort (1) Eligibility Standard a. To meet the eligibility standard for an award for a fiscal year, the LEA must budget for the education of children with disabilities at least the same amount, from at least one of the following sources ,as the LEA spent for that purpose from the same source for the most recent fiscal year for which information is available: i. Local funds only; ii. The combination of state and local funds; iii. Local funds only on a per capita basis; or iv. The combination of state and local funds on a per capita basis. b. When determining the amount of funds that the LEA must budget to meet the requirement, the LEA may take into consideration, to the extent the information is available, the exceptions and adjustment provided in 34 CFR sections 300.204 and 300.205 that the LEA: i. Took in the intervening year or years between the most recent fiscal year for which information is available and the fiscal year for which the LEA is budgeting; and ii. Reasonably expects to take in the fiscal year for which the LEA is budgeting. c. Expenditures made from funds provided by the federal government for which the SEA is required to account to the federal government or for which the LEA is required to account to the federal government directly or through the SEA may not be considered in determining whether an LEA meets the eligibility standard (34 CFR section 300.203(a)). (2) Compliance Standard a. Except as provided in 34 CFR sections 300.204 and 300.205, funds provided to an LEA under IDEA, Part B must not be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds below the level of those expenditures for the preceding fiscal year. An LEA meets this standard if it does not reduce the level of expenditures for the education of children with disabilities made by the LEA from at least one of the following sources below the level of those expenditures from the same source for the preceding fiscal year, except as provided in 34 CFR sections 300.204 and 300.205: i. Local funds only; ii. The combination of state and local funds; iii. Local funds only on a per capita basis; or iv. The combination of state and local funds on a per capita basis. Expenditures made from funds provided by the federal government for which the SEA is required to account to the federal government or for which the LEA is required to account to the federal government directly or through the SEA may not be considered in determining whether an LEA meets the compliance standard (34 CFR section 300.203(b)). (3) § 300.204 Exception to maintenance of effort Notwithstanding the restriction in § 300.203(b), an LEA may reduce the level of expenditures by the LEA under Part B of the Act below the level of those expenditures for the preceding fiscal year if the reduction is attributable to any of the following: a. The voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related services personnel. b. A decrease in the enrollment of children with disabilities. c. The termination of the obligation of the agency, consistent with this part, to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by the SEA, because the child— i. Has left the jurisdiction of the agency; ii. Has reached the age at which the obligation of the agency to provide FAPE to the child has terminated; or iii. No longer needs the program of special education. d. The termination of costly expenditures for long term purchases, such as the acquisition of equipment or the construction of school facilities. e. The assumption of cost by the high cost fund operated by the SEA under § 300.704(c). Additionally, 2 CFR 200.303 indicates that non Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition During our testing to confirm the City of Boston Public Schools (BPS) met Special Education (IDEA) Cluster’s maintenance of effort (MOE) Compliance Standard test, we noted there was four school closures during fiscal year 2023. This resulted in a decrease in the enrollment of children with disabilities, an allowable exception to the MOE calculation as noted above. However, BPS was unable to provide sufficient documentation calculating the actual decrease in the enrollment of children with disabilities and the associated dollar value impact on the MOE calculation. Cause This appears to be due to insufficient policy in place for tracking the MOE compliance and retention of documentation supporting allowable exceptions. Whether Sampling was Statistically Valid The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Recommendation We recommend that BPS re enforce its policies and procedures to ensure sufficient tracking and documentation is retained supporting all allowable exceptions for the maintenance of effort Compliance Standard requirement. View of Responsible Officials from the Auditee This is the first year BPS met maintenance of effort through the per pupil standard. We are revising our tracking and documentation for special education expenses to ensure that when we meet MOE through this standard we have kept appropriate records to meet MOE compliance requirements.

Corrective Action Plan

Boston Public Schools (BPS) has revised their tracking and documentation for special education expenses. Anticipated Completion Date: June 30, 2024 Responsible Contact Person: Colin Musto, Assistant City Auditor, Grants Monitoring Unit colin.musto@boston.gov

Categories

Procurement, Suspension & Debarment Eligibility Significant Deficiency Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 496626 2023-003
    Material Weakness
  • 496627 2023-004
    Significant Deficiency
  • 496628 2023-004
    Significant Deficiency
  • 496629 2023-005
    Material Weakness
  • 496630 2023-006
    Material Weakness Repeat
  • 496631 2023-007
    Material Weakness Repeat
  • 496632 2023-008
    Material Weakness
  • 496633 2023-009
    Material Weakness Repeat
  • 496634 2023-010
    Material Weakness
  • 496635 2023-011
    Material Weakness
  • 496637 2023-011
    Material Weakness
  • 496638 2023-012
    Significant Deficiency
  • 496639 2023-013
    Significant Deficiency
  • 496640 2023-014
    Material Weakness
  • 496641 2023-015
    Material Weakness
  • 496642 2023-016
    Material Weakness
  • 1073068 2023-003
    Material Weakness
  • 1073069 2023-004
    Significant Deficiency
  • 1073070 2023-004
    Significant Deficiency
  • 1073071 2023-005
    Material Weakness
  • 1073072 2023-006
    Material Weakness Repeat
  • 1073073 2023-007
    Material Weakness Repeat
  • 1073074 2023-008
    Material Weakness
  • 1073075 2023-009
    Material Weakness Repeat
  • 1073076 2023-010
    Material Weakness
  • 1073077 2023-011
    Material Weakness
  • 1073078 2023-012
    Significant Deficiency
  • 1073079 2023-011
    Material Weakness
  • 1073080 2023-012
    Significant Deficiency
  • 1073081 2023-013
    Significant Deficiency
  • 1073082 2023-014
    Material Weakness
  • 1073083 2023-015
    Material Weakness
  • 1073084 2023-016
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $155.28M
21.027 Coronavirus State and Local Fiscal Recovery Funds $137.12M
84.425 Education Stabilization Fund $95.96M
84.010 Title I Grants to Local Educational Agencies $36.42M
14.267 Continuum of Care Program $33.21M
10.555 National School Lunch Program $30.28M
84.027 Special Education_grants to States $18.48M
97.067 Homeland Security Grant Program $14.25M
21.023 Emergency Rental Assistance Program $13.46M
14.231 Emergency Solutions Grant Program $9.76M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $7.37M
14.218 Community Development Block Grants/entitlement Grants $2.92M
84.367 Improving Teacher Quality State Grants $2.66M
66.443 Reducing Lead in Drinking Water (sdwa 1459b) $2.33M
84.365 English Language Acquisition State Grants $1.97M
84.048 Career and Technical Education -- Basic Grants to States $1.89M
14.248 Community Development Block Grants_section 108 Loan Guarantees $1.81M
10.558 Child and Adult Care Food Program $1.72M
10.582 Fresh Fruit and Vegetable Program $1.42M
84.424 Student Support and Academic Enrichment Program $1.21M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.17M
84.173 Special Education_preschool Grants $984,808
84.287 Twenty-First Century Community Learning Centers $975,544
14.905 Lead Hazard Reduction Demonstration Grant Program $932,129
10.559 Summer Food Service Program for Children $847,800
93.053 Nutrition Services Incentive Program $819,095
84.002 Adult Education - Basic Grants to States $637,747
97.106 Securing the Cities Program $633,137
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $529,609
16.833 National Sexual Assault Kit Initiative $419,758
16.034 Coronavirus Emergency Supplemental Funding Program $361,892
16.741 Dna Backlog Reduction Program $304,935
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $296,943
94.016 Senior Companion Program $282,802
97.044 Assistance to Firefighters Grant $275,718
16.738 Edward Byrne Memorial Justice Assistance Grant Program $220,692
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $216,589
14.241 Housing Opportunities for Persons with Aids $146,150
94.002 Retired and Senior Volunteer Program $128,436
97.056 Port Security Grant Program $114,220
10.579 Child Nutrition Discretionary Grants Limited Availability $112,182
16.588 Violence Against Women Formula Grants $106,201
84.196 Education for Homeless Children and Youth $101,856
97.024 Emergency Food and Shelter National Board Program $93,705
45.024 Promotion of the Arts_grants to Organizations and Individuals $75,000
16.820 Postconviction Testing of Dna Evidence to Exonerate the Innocent $70,275
10.935 Urban Agriculture and Innovative Production $68,330
16.751 Edward Byrne Memorial Competitive Grant Program $62,566
93.052 National Family Caregiver Support, Title Iii, Part E $54,824
47.076 Education and Human Resources $48,623
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $47,562
14.401 Fair Housing Assistance Program_state and Local $43,110
97.042 Emergency Management Performance Grants $42,546
10.331 Food Insecurity Nutrition Incentive Grants Program $40,575
16.838 Comprehensive Opioid Abuse Site-Based Program $38,947
14.889 Choice Neighborhoods Implementation Grants $38,598
14.261 Homeless Management Information Systems Technical Assistance $38,248
84.305 Education Research, Development and Dissemination $32,566
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $25,988
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $19,965
14.246 Community Development Block Grants/brownfields Economic Development Initiative $13,770
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $12,444
93.566 Refugee and Entrant Assistance_state Administered Programs $9,500
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $7,450
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $6,810
20.205 Highway Planning and Construction $6,244
84.411 Investing in Innovation (i3) Fund $1,192
16.710 Public Safety Partnership and Community Policing Grants $1,068
20.600 State and Community Highway Safety $283
16.817 Byrne Criminal Justice Innovation Program $-17
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $-385,211