Finding 513878 (2024-001)

FINDING # 2024-001 U.S Department of Education – Passed-through the NYS Education Department Special Education Grants to States (IDEA, Part B); CFDA No. 84.027; Project #0032-24-1114; Grant Period – Fiscal Year Ended June 30, 2024 Special Education Grants to States (IDEA Preschool); CFDA No. 84.173; Project #0033-24-1114; Grant Period – Fiscal Year Ended June 30, 2024 Significant Deficiency Criteria: According to 34 CFR Section 300.203, and the OMB Compliance Supplement, IDEA Part B funds received by a school district cannot be used, except under certain limited circumstances, to reduce the level of expenditures for the education of children with disabilities made by the school district from local funds, or a combination of state and local funds, below the level of those expenditures for the preceding fiscal year. To meet this requirement, school districts must meet (1) the eligibility standard using prior year’s expenditures Condition: During our audit we noted certain figures used as inputs for the 2022-2023 Maintenance of Effort (MOE) compliance calculator did not agree to the District’s actual 2022-2023 excess cost aid and special education expenditures, and therefore we were unable to substantiate the 2022-2023 compliance calculator filed with the state. It is noted that subsequent to our finding, upon updating the MOE calculator, it was determined that the District was in compliance with the maintenance of effort requirements for the 2022-2023 MOE compliance calculator. Cause: The District has internal controls in place to have the MOE calculator reviewed and approved by a responsible administrator prior to submission. However, strengthening of internal control review process is needed. Effect: The District’s maintenance of effort calculator was submitted to the State with incorrect and/or incomplete information, which may affect future compliance with the requirements. Recommendation: We recommend the District strengthen the existing system of internal control to have the maintenance of effort documentation reviewed by a responsible administrator prior to submitting it to the State. We also recommend the District officials contact the State to verify procedures to file a revised MOE calculation, if considered necessary. District’s Response: The District’s response is included in their corrective action plan.