INDEPENDENT SCHOOL DISTRICT NO. 162Local Government

2025-003 FINDING Federal Program Education Stabilization Fund (AL 84.425U) Special Tests and Provisions – Wage Rate Requirements Criteria 29 CFR Part 5, Labor Standards Provisions Application to Contracts Governing Federally Financed and Assisted Construction requires the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition Certified payrolls were not submitted the week after the week where work was performed. Questioned Costs Undeterminable Context In a population of 17 certified payrolls submitted by 3 contractors, we haphazardly selected 3 certified payrolls to test. We noted one payroll was submitted approximately 90 days after the week of when the work was performed. Cause Management oversight Effect The District would not have timely caught improper wage rates paid to contractors. Repeat Finding No Recommendation The District should implement policies and procedures to ensure all certified payrolls are submitted the week after the week of which work is performed. Views of the Responsible Officials The District agrees with the recommendation.

Federal Program Education Stabilization Fund (AL 84.425) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria The “Basic Guidelines” section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition One employee was overcharged to the grant and the District was unable to provide documentation for a few stipend payments. Questioned Costs Immaterial Context A sample of 18 employees were selected for testing. For one employee tested, noted that the amount charged to the grant for one pay period was higher than the employee’s total payroll for that pay period. There was a negative offset in another payroll account that wasn’t adjusted to the grant. Also, noted there were 3 employees that received stipend payments for a lesser amount than the maximum per employee of $1,000. The District was unable to provide documentation for the calculation of this lesser amount. Cause Staff turnover at the District Effect The District overcharged the grant for one employee and a few stipend payments charged to the grants did not have proper supporting documentation. Repeat Finding No Recommendation The District should review their payroll procedures to ensure the correct amounts are charged to grants and all supporting documentation is maintained. Views of Responsible Officials The District agrees with the recommendation and will review its payroll procedures.

2021-003 FINDING ? Reporting Impact Aid CFDA 84.041 Criteria Impact Aid Governing Requirements - Section 7005 of the ESEA specifies that a school district desiring to receive impact aid shall submit an application for such aid. Each application shall be submitted in such form and manner as required including information to determine the eligibility of the school district for payment and the amount of such payment. Based on the above requirement, information reported in the application is used to determine funding amounts. Condition The District was unable to provide source documents for the counts of federally connected children reported on the Impact Aid application submitted for the 2021-2022 year. Questioned Costs None Context Due to staff turnover, the District was unable to provide the reports to support the counts of federally connected children in various categories, reported on the application. The District was able to provide the source documents for most of the application and there were no errors noted, with the information that was provided. Cause The District did not have sufficient procedures in place to ensure that all the source documents for the application was retained. Effect Impact aid funding could be denied based on inaccurate or unsupported information reported in the application. Repeat Finding Yes Recommendation The District should ensure that all source documents for the application are retained and reviewed, before the application is submitted. Views of Responsible Officials The District agrees with the recommendation and will review immediately.

2020-004 FINDING ? Reporting Impact Aid CFDA 84.041 Criteria Impact Aid Governing Requirements - Section 7005 of the ESEA specifies that a school district desiring to receive impact aid shall submit an application for such aid. Each application shall be submitted in such form and manner as required including information to determine the eligibility of the school district for payment and the amount of such payment. Based on the above requirement, information reported in the application is used to determine funding amounts. Condition A significant error was noted on the Impact Aid 2020-2021 application submitted. Questioned Costs None Context On the 2020-2021 application, the number of children that live on Indian Lands was reported as 78 when the actual total was 97 per review of District reports ? an error of 19 children. There were no other significant errors noted on the application. Cause The District did not have sufficient procedures in place to ensure that the application is completed accurately. Effect Impact aid funding could have been denied based on inaccurate information reported in the application. Repeat Finding Yes Recommendation The District should ensure that the application is reviewed in detail and information reported should be traced to the source reports by the reviewer. Views of Responsible Officials The District agrees with the recommendation and will review immediately.

2019-004 FINDING ? Reporting Impact Aid CFDA 84.041 Criteria Impact Aid Governing Requirements - Section 7005 of the ESEA specifies that a school district desiring to receive impact aid shall submit an application for such aid. Each application shall be submitted in such form and manner as required including information to determine the eligibility of the school district for payment and the amount of such payment. Based on the above requirement, information reported in the application is used to determine funding amounts. Condition A significant error was noted on the Impact Aid 2018-2019 application submitted. Questioned Costs None Context On Table 7 of the 2018-2019 application, the number of enrolled children with disabilities reported for the preceding fiscal year was reported as 187 when the actual total was 235 per review of District reports ? an error of 48 children. There were no other significant errors noted on the application. Cause The District did not have sufficient procedures in place to ensure that the application is completed accurately. Effect Impact aid funding could have been denied based on inaccurate information reported in the application. Repeat Finding No Recommendation The District should ensure that the application is reviewed in detail and information reported should be traced to the source reports by the reviewer. Views of Responsible Officials The District will ensure that the application is reviewed by someone other than the preparer and information reported will be traced to the source reports by the reviewer.