Finding 520729 (2024-003)

SIGNIFICANT DEFICIENCY 2024-003 Federal Award Special Education (IDEA) Cluster – 84.027 and 84.173 Compliance Requirement Maintenance of Effort Criteria or specific requirement Internal controls should be in place to ensure that accurate amounts are reported to the State Department of Education for the Maintenance of Effort calculation. Condition Certain expenditure amounts reported to the State Department of Education for the Maintenance of Effort calculation were not accurate or could not be corroborated. Context We determined, through testing of the Maintenance of Effort submission, that five amounts reported had an immaterial variance when compared to the supporting documentation. Cause Supporting documentation was not saved at the time of preparation of the report, and some relevant accounts were missed when summing the expenditures that needed to be reported. Effect The State Department of Education was provided inaccurate amounts for use in its Maintenance of Effort calculation. Recommendation Procedures should be established and implemented to ensure that all supporting documentation used in the preparation of the Maintenance of Effort submission be saved and that all expenditures reported are accurate. Views of responsible officials See Corrective Action Plan.