Northwest Local School District

For a cost to be allowable, it must (1) be for a purpose the specific award permits and (2) fall within 2 CFR Part 200, Subpart E Cost Principles. Further, 2 CFR 200.403(g) states, in part, that except where otherwise authorized by statute, costs must be adequately documented to be allowable under Federal awards. Additionally, sound internal controls over the disbursement of Federal funds is pertinent to ensure that disbursements are accurate, complete, and in compliance with applicable laws and regulations. During fiscal year 2025, we noted that professional development stipends in the amount of $14,300 were paid out to teachers in the middle school and high school buildings, both of which were non-Title I buildings. Further, all stipend amounts paid for professional development trainings were not documented as being approved by the Board or any other professional development committee(s). The School District should adopt procedures to ensure that all costs are in accordance with the Code of Federal Regulations. Additionally, we recommend that professional development stipends amounts be approved by the Board. Supporting documentation of the review and approval by the Board should be maintained for a proper audit trail.

To strengthen compliance moving forward, the newly appointed Federal Programs Coordinator has attended a federal programs conference, and the Treasurer has completed grants management training through OASBO. The District will continue to pursue ongoing training opportunities to ensure adherence to federal grant requirements, including proper allowability, documentation, and internal controls over disbursements.