Finding 539059 (2024-004)

FIFINDING 2024-004 MAINTENANCE OF EFFORT SIGNIFICANT DEFICIENCY Federal Program: Title I, Part A (84.010) Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2023-002. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement 2020, Section 4-84.000-13, states “An LEA may receive funds under an applicable program only if the SEA finds that the combined fiscal effort per student or the aggregate expenditures of the LEA from state and local funds for free public education for the preceding year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding year, unless specifically waved.” Condition The Indiana Department of Education completes the maintenance of effort calculation using the Form 9 report issued by the School, which is a cash-basis report. Review of the School’s Form 9 found the report to be unreliable. Expenditures per the Form 9 totaled approximately $12,565,000 for the period of July 1, 2023 to June 30, 2024. Cash basis expenses per the School’s financial records totaled approximately $10,430,000. Cause The School did not report expenses in line with the guidelines set by the Indiana Department of Education. Effect Maintenance of effort calculations prepared by the Indiana Department of Education could be impacted by incorrect reporting of expense transactions. Recommendation We recommend the School develop internal controls to ensure expenses are properly reported on the Form 9 report in line with guidelines. Views of Responsible Officials The School’s Corrective Action Plan is included on page 28 and 30.