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: 2022
Criteria: Per the Compliance Supplement – Application for Impact Aid – Section 7003 (OMB No.
1810-0687) – Each year an LEA must submit this application, which provides the following information: counts of federally connected children in various categories, membership and average
daily attendance data, and information on expenditures for children with disabilities. Please note:
As a result of the public health emergency related to the coronavirus, the Impact Aid Coronavirus
Relief Act (Pub. L. No. 116-211) provides LEAs the option for their fiscal year 2022 7003
application of using the same student count data from their fiscal year 2021 application or
providing new student count data as prescribed in Section 7003. Membership and average attendance
data should be tested. The auditor should use professional judgment when determining which
categories to test, taking into account the relative materiality of the number of children reported in other categories.
Condition: During our review of information provided in the Impact Aid application we identified
the following issues:
• A student who was no longer in the special education program was still listed on the Impact
Aid application as a student with disabilities.
• A student in the special education program did not have a current individual education
program (IEP) in place at the October survey date. The previous IEP had expired in September and
the new IEP was not put in place until November of the same year.
• The Federal oversight agency had previously reviewed the application used for this audit and
had found multiple errors that had been corrected in consultation with the District. We had
reviewed the corrected application.
Questioned Costs: $12,450
Cause: There was not good inter-program communication to make sure special education students are
properly accounted for on the Impact Aid application.
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: When completing the Impact Aid application, the students included on the
special education portion of the application should be reviewed by the special education department
to make sure all students are properly accounted for as students may move in or out of the program.
Responsible official’s view:
• Specific corrective action plan for the finding:
Review the students’ files and update PowerSchool to make the necessary corrections as
needed. Student Support Services Department provides reports with due dates to Case Managers for
verification. Student Services Department reviews if changes are needed.
• Timeline for completion of corrective action plan:
June 2023
• Employee positions(s) responsible for meeting the timeline:
Case Managers/Special Education Teachers are responsible for meeting the timelines of Annual and
Reevaluation IEP Due Dates. Student Support Services Director & Department for certification and
compliance reports.