Finding 627478 (2022-003)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-21
Audit: 43178
Auditor: Bowman & Company

AI Summary

  • Core Issue: The School District overclaimed costs for special education services, leading to higher reimbursements than actual expenses incurred.
  • Impacted Requirements: Compliance with P.L. 2021, c.109, which mandates accurate reporting of costs for additional special education services.
  • Recommended Follow-Up: Implement internal controls to ensure only allowable costs are reported for reimbursement to prevent future discrepancies.

Finding Text

Information on the Federal Program U.S. Department of Treasury ? Coronavirus State and Local Fiscal Recovery Fund (SLFRF) (Assistance Listing Number 21.027) (FAIN ? SLFRFDOE1SES) -7/1/21 ? 6/30/22 Passed through N.J. Department of Education as Additional or Compensatory Special Education and Related Services (ACSERS) Criteria or Specific Requirement P.L. 2021, c.109 requires School Districts to offer up to one year of additional or compensatory special education and related services to students with disabilities if a determination is made by the student?s Individualized Education Program (IEP) team that the student requires such services. The N.J. Department of Education (NJDOE) will reimburse School Districts for services provided through the American Rescue Plan State Fiscal Recovery Fund. School Districts submit application in December 2021 estimating the total costs to be incurred in the 2021-2022 school year, and submit a final application before July 2022 with adjustments to the initial costs estimates, as needed. Condition The School District did not make adjustments to initial costs estimates for ACSERS; therefore, the School District was reimbursed more costs than actually incurred by the funding agency. Questioned Costs Known or likely questioned costs are not greater than the reporting threshold. Context The population and sample for ACSERS expenditures include tuition costs, instructional aid costs, and transportation costs for two students who exceeded the age of eligibility in 2021-2022 school year attending an approved private school for students with disabilities. During the test, we noted the following: (1) the School District overclaimed and was over-reimbursed instructional aid costs than incurred for one student; and (2) the School District overclaimed and was over-reimbursed transportation costs than incurred for both students. Effect or Potential Effect Unallowable costs were reported to and reimbursed by the funding agency. Cause Final application did not reflect adjustments to the initial costs estimates. Identification as a Repeat Finding Not applicable. Recommendation The School District develop and implement internal control procedures to ensure only allowable costs are reported to grantor agency when seeking reimbursements. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 51036 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $1.48M
10.553 School Breakfast Program $358,187
84.010 Title I Grants to Local Educational Agencies $332,467
21.027 Coronavirus State and Local Fiscal Recovery Funds $280,632
84.425 Education Stabilization Fund $121,238
93.778 Medical Assistance Program $100,940
84.027 Special Education_grants to States $88,033
84.365 English Language Acquisition State Grants $3,634
84.173 Special Education_preschool Grants $1,155
10.649 Pandemic Ebt Administrative Costs $628