Finding Text
2022-002 Significant Deficiency in Internal Controls over Compliance and Compliance ? Special Reporting Agency: U.S. Department of Education Program(s) and Federal Award Identification Number(s): Impact Aid ALN 84.041 FAIN: S041B220137 New or Repeat: New Criteria: Each year the School District must submit an application for Impact Aid, which provides counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition: The application submitted during fiscal year 2022 was rejected due to the format of data submitted not adhering to instructions. The School District did not resolve documentation issues in a timely manner. Cause: A lack of design or implementation of controls over the application rejection process and failure to update the grantor for changes in the Superintendent position in a timely manner resulted in the rejection notification not being addressed during fiscal year 2022. Context and effect: The application rejection resulted in no funding being approved for fiscal year 2022. Auditor inquiry after year-end identified the need for additional follow up by management related to the rejected application.Questioned costs: None. Recommendation: We recommend that oversight of the Impact Aid program include written procedures over the application process, including a set timeline for addressing communication from the grantor and any follow up required. We further recommend the School District work with its grantor to determine if the issues in the application filed in 2022 can be remedied. View of responsible officials: Management concurs with this finding, see corrective action plan.