CHATHAM SCHOOL DISTRICTLocal Government

2022-002 Significant Deficiency in Internal Controls over Compliance and Compliance ? Special Reporting Agency: U.S. Department of Education Program(s) and Federal Award Identification Number(s): Impact Aid ALN 84.041 FAIN: S041B220137 New or Repeat: New Criteria: Each year the School District must submit an application for Impact Aid, which provides counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition: The application submitted during fiscal year 2022 was rejected due to the format of data submitted not adhering to instructions. The School District did not resolve documentation issues in a timely manner. Cause: A lack of design or implementation of controls over the application rejection process and failure to update the grantor for changes in the Superintendent position in a timely manner resulted in the rejection notification not being addressed during fiscal year 2022. Context and effect: The application rejection resulted in no funding being approved for fiscal year 2022. Auditor inquiry after year-end identified the need for additional follow up by management related to the rejected application.Questioned costs: None. Recommendation: We recommend that oversight of the Impact Aid program include written procedures over the application process, including a set timeline for addressing communication from the grantor and any follow up required. We further recommend the School District work with its grantor to determine if the issues in the application filed in 2022 can be remedied. View of responsible officials: Management concurs with this finding, see corrective action plan.

Major Program Significant Deficiency in Internal Controls over Compliance ? Reporting Programs: U.S. Department of Education, Impact Aid ? CFDA #84.041 Criteria: Per 34 CFR 222.35(4)i every parent-pupil survey form must include the signature of the parent supplying the information, except as provided in paragraph (a)(4)(ii) of this section, and the date of such signature, which must be on or after the survey date. Condition: Internal controls over compliance were not sufficiently designed and implemented to ensure all survey forms were signed or source check documentation retained to support counts included in the application if an exception was met. Cause: Chatham School District (CSD) experienced staff turnover in the district office during the fiscal year and monitoring of survey forms and application support documentation was not retained. Questioned costs: There are no questioned costs associated with this finding although the federal agency may determine that students were not eligible in absence of a signed survey form. Context: In our testing of the Impact Aid application we selected students included in the application and reviewed their Impact Aid Program Survey Forms. Three survey forms were not signed, nor was documentation retained to support if an exception to the signature requirement was met. In addition, support was not retained for the total membership reported as enrolled in state approved ed programs, listed in table 7 of the application. Effect: Internal controls over the application reporting process were not functioning as designed. A lack of monitoring of supporting documentation for completeness could result the federal agency determining that CSD is not entitled to funds paid based on the application. Recommendation: We recommend management ensure their application process controls be followed consistently to ensure forms are completed and support retained for student counts reported. View of responsible officials: Management concurs with this finding, see corrective action plan.