Finding 498095 (2023-003)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-09-24

AI Summary

  • Core Issue: The district is potentially using Impact Aid funds to replace state funding, which is against federal regulations.
  • Impacted Requirements: Compliance with 20 USC 7703(d) and 34 CFR Section 222.54 is crucial to ensure that federal funds do not supplant state funds for education.
  • Recommended Follow-Up: The district needs to improve its monitoring processes and controls to prevent fund supplanting and ensure compliance.

Finding Text

2023 – 003 – Level of Effort Federal Agency: U.S. Department of Education Federal Program Name: Impact Aid Assistance Listing Number: 84.041 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2022 – June 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: (20 USC 7703(d)); 34 CFR Section 222.54; Title 34 Subtitle B Chapter II Part 222 Subpart D § 222.54. Section 7003(d) funds may not supplant any state funds (either general or special education state aid) that were or would have been available to the LEA for the free, appropriate public education of federally connected children with disabilities counted under Section 7003(d). Condition/Context: The district appears to be supplanting Fund 001 funding with Impact Aid funds. Questioned costs: None Cause: Current process and controls are not at the correct precision level to monitor supplanting indicators to ensure compliances are being met. Effect: Ineffective monitoring may result in questioned costs and noncompliance with the terms of the grant award. Repeat finding: No Recommendation: The District should refine its current process and associated controls to monitor supplanting of grant funds. Views of responsible officials: There is no disagreement with the audit finding. See corrective action plan.

Corrective Action Plan

2023-003 Level of Effort U.S. Department of Education Impact Aid – Assistance Listing No. 84.041 Pass-Through Agency: N/A Pass-Through Number(s): N/A Recommendation: The District should refine its current process and associated controls to monitor supplanting of grant funds Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The district will update the supplanting methodology utilized to ensure all federal funds are supplementing and not supplanting state funds. Name(s) of the contact person(s) responsible for corrective action: Clementina Carlyle, Chief Financial Officer.

Categories

Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 498094 2023-002
    Significant Deficiency
  • 498096 2023-004
    Significant Deficiency Repeat
  • 498097 2023-005
    Significant Deficiency
  • 498098 2023-004
    Significant Deficiency Repeat
  • 498099 2023-005
    Significant Deficiency
  • 498100 2023-004
    Significant Deficiency Repeat
  • 498101 2023-005
    Significant Deficiency
  • 1074536 2023-002
    Significant Deficiency
  • 1074537 2023-003
    Significant Deficiency
  • 1074538 2023-004
    Significant Deficiency Repeat
  • 1074539 2023-005
    Significant Deficiency
  • 1074540 2023-004
    Significant Deficiency Repeat
  • 1074541 2023-005
    Significant Deficiency
  • 1074542 2023-004
    Significant Deficiency Repeat
  • 1074543 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $9.17M
84.425 Education Stabilization Fund $2.81M
10.555 National School Lunch Program $546,800
84.010 Title I Grants to Local Educational Agencies $506,391
21.027 Coronavirus State and Local Fiscal Recovery Funds $473,474
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $323,631
32.009 Emergency Connectivity Fund Program $277,873
84.060 Indian Education Grants to Local Educational Agencies $238,565
10.553 School Breakfast Program $143,988
10.559 Summer Food Service Program for Children $96,161
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $94,960
84.027 Special Education Grants to States $43,704
15.130 Indian Education Assistance to Schools $32,619
84.358 Rural Education $24,276
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $21,806
84.048 Career and Technical Education -- Basic Grants to States $19,970
84.173 Special Education Preschool Grants $3,268