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: 2023
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.
There has been no change from the prior year’s audit as the District was able to use the same student data as the previous year because
of the COVID exceptions for applications.
Questioned Costs: $2,327
The District received $582,802 for 501 students. As two of those students did not meet application requirements the value of those
students was calculated as questionable (2 / 501 * $582,802 = $2,327).
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:
Student Services Department Data Records Clerk reviewed and audited files to ensure student information is up to
date in PowerSchool to ensure reliable, efficient, and timely data is being collected.
Timeline for completion of corrective action plan:
Resolved
Employee positions(s) responsible for meeting the timeline:
Data Records Clerk and Student Support Services Director.