Finding Text
Statement of condition: Management was unable to provide sufficient documentation evidencing the proper allocation of funds in accordance with federal ranking and allocation requirements. Criteria: Under Title I, Part A of the Elementary and Secondary Education Act (ESEA), funds must be allocated to eligible schools in rank order based on the percentage of students from low-income families. The allocation process must ensure that the highest-poverty schools, those above 75 percent poverty, are served before any schools with a poverty percentage at or below 75 percent. Sufficient documentation must be maintained to verify compliance with these requirements.
According to federal regulations, school districts must provide clear documentation and justification
for the allocation process.
Cause of condition: The School did not allocate funds to eligible schools in rank order. Schools with poverty levels below 75 percent were allocated more funds per pupil than schools with poverty levels above 75 percent, and management was unable to produce supporting documentation and justification regarding the allocation of funds.
Effect of condition: Without proper documentation of the allocation of Title I, Part A funds, it is difficult to determine whether the School is in compliance with federal requirements. It cannot be verified that funds were correctly allocated in accordance with the poverty ranking of eligible schools. Additionally, failure to allocate funds properly could lead to the under-serving of eligible students, impacting educational opportunities for students from low-income families.
Context: Management provided documentation of their 2023-2024 Title I, Part A budget that was entered into the Federal Grant Management System. According to the provided documentation, schools with poverty levels below 75 percent were allocated more funds per pupil than schools with poverty levels above 75 percent. Additionally, there was $751,709 of available funds that were not allocated to schools.
Recommendation: The School should implement a process to ensure all Title I, Part A funds are properly allocated to eligible schools in accordance with the federal ranking requirements. Furthermore, the School should maintain detailed documentation and justification for any unallocated funds to ensure transparency and accountability.
Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to ensure the proper allocation of funds and maintain sufficient documentation evidencing the proper allocation.