Finding Text
FINDING # 2022-001 U.S. Department of Education ? Passed-through the NYS Education Department Special Education Grants to States (IDEA, Part B); CFDA No. 84.027; Project #0032-22-0942; Grant Period ? Fiscal Year Ended June 30, 2022 Special Education Preschool Grants (IDEA Preschool); CFDA No. 84.173; Project #0033-22-0942; Grant Period ? Fiscal Year Ended June 30, 2022 Significant Deficiency Criteria: According to 34 CFR Section 300.203, and the OMB Compliance Supplement, IDEA Part B funds received by a school district cannot be used, except under certain limited circumstances, to reduce the level of expenditures for the education of children with disabilities made by the school district from local funds, or a combination of state and local funds, below the level of those expenditures for the preceding fiscal year. To meet this requirement, school districts must meet (1) the eligibility standard using budgeted amounts and (2) the compliance standard using prior year?s expenditures. Condition: During our audit we noted certain figures used as inputs for the 2021-2022 Maintenance of Effort (MOE) eligibility calculator did not agree to the District?s budgeted 2021-2022 special education expenditures, and therefore we were unable to substantiate the 2021-2022 eligibility calculator filed with the state. It is noted, that subsequent to our finding, the District updated the MOE calculator and it was determined that the District was in compliance with the maintenance of effort requirements for the 2021-22 MOE eligibility calculator. Cause: The District did not have internal controls in place to have the MOE calculator reviewed and approved by a responsible administrator prior to submission. Effect: The District?s maintenance of effort calculator was submitted to the State with incorrect and/or incomplete information, which may affect future compliance with the requirements. Recommendation: We recommend the District develop a system of internal control to have the maintenance of effort calculator reviewed and approved with all supporting documentation by a responsible administrator prior to submitting it to the State. We also recommend the District officials contact the State to verify procedures to file a revised MOE calculation, if considered necessary. District?s Response: The District?s response is included in their corrective plan.