Finding 526745 (2024-004)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-03-12

AI Summary

  • Core Issue: The District improperly used Impact Aid funds to cover 85% of a Safety Coordinator's salary, which is not related to special education services.
  • Impacted Requirements: This violates federal regulations requiring that funds be used solely for excess costs of special education and not to supplant other funding sources.
  • Recommended Follow-Up: Establish a review process for salary expenditures and ensure proper documentation is maintained to justify the use of federal funds.

Finding Text

Federal Program Information: Funding Agency: U.S. Department of Education Title: Impact Aid (Title VII of ESEA) FAL Number: 84.041 Passthrough: N/A Award Year: 2024 Criteria: Title 34 Subtitle B Chapter III Part 300 Section 300.202 Use of Amounts (a) General. Amounts provided to the LEA under Part B of the Act— (1) Must be expended in accordance with the applicable provisions of this part; (2) Must be used only to pay the excess costs of providing special education and related services to children with disabilities, consistent with paragraph (b) of this section; and (3) Must be used to supplement State, local, and other Federal funds and not to supplant those funds. Condition: During our review of information provided in the Impact Aid application we identified the following issue:  The District used Impact Aid special education funds to pay 85% of the salary of the District Safety Coordinator through mid-December 2023 after which it was changed to 15% of the salary from the special education funds.  There was no justification in the files reviewed that identified why the individual’s responsibilities related to special education funding. Questioned Costs: $70,265 – The questioned costs are calculated as the entire salary of the employee paid from special education funds ($56,213) plus a 25% load for benefits. We did not identify any other employees who did not have a legitimate reason for being charged to Impact Aid funds. Cause: The District did not ensure the funds expended were related to special education. Effect: The District is not in compliance with Federal regulations related to internal control procedures and compliance requirements in relation to the grant and could put funding in jeopardy or require the District to reimburse the program. Auditor’s Recommendation: We recommend that the District establish policies which require proper review and approval from department heads for expenditures of funds on salaries. This process will ensure that any program directors are fully aware of any funds being spent and can verify if those are appropriate expenditures from the particular Federal funds. Additionally, we recommend that documentation be put in files to demonstrate why a reason was made for coverage of salaries in a Federal program when there may be questions as to why this was justified. Responsible official’s view: ● Specific corrective action plan for the finding: The Special Education Department will review expenditures to determine allowable criteria are met during the requisition review process. The salary funding source was changed July 1, 2024 and is no longer charged to Impact Aid. ● Timeline for completion of corrective action plan: July 1, 2024 ● Employee positions(s) responsible for meeting the timeline: Special Ed. Director, Special Ed. Coordinator, Special Ed. Specialist, Finance Director

Corrective Action Plan

Corrective Action for audit finding 2024-004 [2023-003] – Unallowable Expenditures Impact Aid (Significant Deficiency) Repeated and Modified Condition: During our review of information provided in the Impact Aid application we identified the following issue: • The District used Impact Aid special education funds to pay 85% of the salary of the District Safety Coordinator through mid-December 2023 after which it was changed to 15% of the salary from the special education funds. • There was no justification in the files reviewed that identified why the individual’s responsibilities related to special education funding. Response: The following is the corrective actions that have been implemented to address the finding: The Special Education Department Director Mr. Joel Balasuit reviews expenditures to determine allowable criteria are met during the request process. The salary funding source was changed July 1, 2024, and is no longer charged to Fund 25145. Additionally, the approval routing was updated to include the Mr, Balasuit’s approval.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 526746 2024-005
    Significant Deficiency Repeat
  • 1103187 2024-004
    Significant Deficiency Repeat
  • 1103188 2024-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $6.17M
10.553 School Breakfast Program $818,042
84.060 Indian Education Grants to Local Educational Agencies $804,874
15.130 Indian Education Assistance to Schools $493,956
84.424 Student Support and Academic Enrichment Program $363,536
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $300,026
84.010 Title I Grants to Local Educational Agencies $250,223
10.565 Commodity Supplemental Food Program $175,785
84.365 English Language Acquisition State Grants $150,351
10.555 National School Lunch Program $139,943
84.040 Impact Aid Facilities Maintenance $105,821
84.173 Special Education Preschool Grants $52,727
84.027 Special Education Grants to States $26,358
84.425 Education Stabilization Fund $15,731
84.196 Education for Homeless Children and Youth $14,998
84.048 Career and Technical Education -- Basic Grants to States $12,491