Finding 553828 (2024-002)

Material Weakness
Requirement
J
Questioned Costs
-
Year
2024
Accepted
2025-04-02

AI Summary

  • Core Issue: The District charged $11,995 in fees for the program without prior approval, violating compliance requirements.
  • Impacted Requirements: Program income must be deducted from the Federal award unless prior written approval is obtained to add it.
  • Recommended Follow-up: Ensure the District seeks preapproval for fees or deducts them from reimbursement requests to stay compliant.

Finding Text

2024-002 Program Income CFDA Title: Title IV-B Twenty-First Community Learning Centers CFDA Number: 84.287 Federal Award Number: S287C230026 2024 Federal Agency: Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the program income compliance requirement for the Twenty-First Century Community Learning Center Grant. Criteria: As part of the federal compliance testing for the Twenty-First Century Community Learning Centers Grant, we tested to determine if the District charged fees associated with the program. Context: In the 2024 Compliance Supplement, under Part 4 Department of Education, page 187 for Program Income related to the Twenty-First Century Community Learning Center grant, it states that a recipient or subrecipient that earns program income must deduct the amount of program income from the amount of the Federal award unless it has received prior written approval from ED to add the amount of program income to the amount of the Federal award. If the recipient or subrecipient receives prior written approval to add the amount of program income to the Federal award, the program income must be used for the purposes and under the conditions of the Federal award. Effect: The District was not incompliance with the program income requirement as it charged $11,995 in fees under this program without approval and did not deduct that amount from the amount requested for reimbursement under the grant. They were awarded $212,500 and were given the full $212,500 under requests for reimbursement. Cause: The District was not aware of the requirement. Recommendation: We recommend that the District ensure that either it gets preapproval from the granting agency prior to charging fees, or they deduct the amount charged for the federal grant and request reimbursement for that much less.

Corrective Action Plan

FINDING 2024-002: Program Income Response: Montana Office of Public Instruction has informed us of this error in management of the 21st Century Grant. In order to be compliant, we are not charging fees for programs within this grant.

Categories

Subrecipient Monitoring Program Income Student Financial Aid Cash Management

Other Findings in this Audit

  • 1130270 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $212,500
84.010 Title I Grants to Local Educational Agencies $203,147
10.553 School Breakfast Program $31,921
10.555 National School Lunch Program $31,161
84.048 Career and Technical Education -- Basic Grants to States $15,442
10.559 Summer Food Service Program for Children $10,549
84.358 Rural Education $9,627
84.425 Education Stabilization Fund $5,856
84.027 Special Education Grants to States $4,443
10.558 Child and Adult Care Food Program $3,766