Finding Text
FINDING 2023-002 MAINTENANCE OF EFFORT (REPEAT FINDING)
SIGNIFICANT DEFICIENCY
Federal Program: Title I, Part A: Grants to Local Educational Agencies
Assistance Listing Number: 84.010
Condition
The Indiana Department of Education completes the maintenance of effort calculation using the Form 9
report issued by the School, which is a cash-basis report. Review of the School’s Form 9 found the report
to be unreliable. Expenditures per the Form 9 totaled approximately $9,078,000 for the period of July 1,
2022 to June 30, 2023. Cash basis expenses per the School’s financial records totaled approximately
$9,009,000.
Criteria
2 CFR part 200, Appendix XI, Compliance Supplement 2020, Section 4-84.000-13, states “An LEA may
receive funds under an applicable program only if the SEA finds that the combined fiscal effort per student
or the aggregate expenditures of the LEA from state and local funds for free public education for the
preceding year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for
the second preceding year, unless specifically waved.”
Cause
The School did not report expenses in line with the guidelines set by the Indiana Department of Education.
Effect
Maintenance of effort calculations prepared by the Indiana Department of Education could be impacted
by incorrect reporting of expense transactions.
Recommendation
We recommend the School develop internal controls to ensure expenses are properly reported on the Form
9 report in line with guidelines.
Views of Responsible Officials and Planned Corrective Actions
The School’s Corrective Action Plan is included on page 24.