audit_findings: 32

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rowid source report_number finding_number muni_id state entity_name entity_type entity_ext_id place_geoid match_method auditor report_title audit_type fiscal_year period_start period_end published_date finding_category severity questioned_cost cost_basis finding_title finding_text report_url fetched_at
32 wa-sao 1021290 2017-001   WA Selah School District No 119 School District 2109   no_match Washington State Auditor's Office Financial and Federal audit — Selah School District No 119 Financial and Federal 2017 2016-09-01 2017-08-31 2018-05-07 federal_award_compliance material_weakness 0.0 Questioned Cost Amount: $0 The District did not have adequate internal controls to ensure compliance with federal Title I graduation rate reporting requirements. CFDA Number and Title: 84.010 Title I Grants to Local Educational Agencies Federal Grantor Name: U.S. Department of Education Federal Award/Contract Number: Pass-through Entity Name: Office of Superintendent of Public Instruction Pass-through Award/Contract Number: Background The objective of the Title I program is to improve the teaching and learning of children who are at risk of not meeting state academic standards and who reside in areas with high concentrations of low-income families. During fiscal year 2017, the District spent $876,847 in Title I program funds. Federal regulations require recipients of federal money to establish and follow internal controls to ensure compliance with program requirements. These controls include knowledge of grant requirements and monitoring of program controls. Districts must report graduation rate data for all of their public high schools to the Office of Superintendent of Public Instruction (OSPI) annually. This is done by submitting a Graduation Rate Report that indicates the student’s enrollment status: graduated, transferred out, dropped out, migrated to another country or deceased. The Distri ct must retain adequate support for changes to a student’s status. To confirm a student transferred out, the District must have official written documentation that the student enrolled in another s chool or in an educational program that culminates in the award of a regular high school diploma. Washington State Auditor's Office Description of Condition We found the District did not adequately design or follow controls to ensure compliance with the Title I graduation reporting requirements. Specifically, the District did not h ave official w ritten documentation to support the students it reported as having transferred out of its high school and its alternative school. We consider this control deficiency to be a material weakness. This issue was not reported as a finding in the prior audit. Cause of Condition High school staff did not follow District protocol to ensure documentation was acquired for students transferrin g out of the District. Also, staff members at the alternative school were not aware of the requirement to obtain and retain documentation for students transferring from a treatment facility to another district. Effect of Condition and Questioned Costs The District could not demonstrate it accurately classified the status of 16 out of 20 students it reported as confirmed transfers. Two of these students were reported as transferred from the high school, and 14 were reported as transferred from the alternative school through a treatment facility. Although there are no questioned costs, the District cannot ensure it reported accurate graduation rates to OSPI in compliance with the program requirements. Recommendation s We recommend the District provide training and guidance to staff members and verify they are obtaining and retaining written verification that students transferring out of the District enrolled in another s chool or in an educational prog ram that culminates in the award of a regular high school diploma. District ’s Response The District agrees that established protocols to obtain and retain adequate support for changes to a student's status to confirm a student transferred out were not followed by appropriate personnel at the high school level. The District is in agreement that it must have a copy of a records request or confirmation from the student reporting system on file to support a student transferring and enrolling in another school district or in an educational program that culminates in the award of a regular high school diploma. Further, the District agrees that it did not have sufficient internal controls in place to provide follow up to ensure such Washington State Auditor's Office documentation was on hand for students transferri ng to other districts. The District also acknowledges that protocols had not been established for obtaining documentation to prove re -enrollment to the applicable originating district (or transfer to another district) for students leaving Sundown M Ranch, a treatment facility who is affiliated with the school district. The assumption has always been they were returning to their home district, but it was not confirmed and documented for these students. The District has since met with the appropriate personnel at the high school and alternative school to review existing protocols for documentation of students transferring to other districts (i.e. records request from the new district or documentation from the system confirming the enrollment with anoth er district), the process for follow up, as well as the newly developed process at the alternative school so that the District can ensure compliance with graduation data reporting requirements. A plan to meet with other appropriate personnel at other buil dings about established protocols will be accomplished prior to the last day of school. Auditor’s Remarks We appreciate the District’s commitment to resolve this finding and thank the District for its cooperation and assistance during the audit. We will re view the corrective action taken during our next audit. Applicable Laws and Regulations The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 U.S. Code of Federal Regulations, (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 303 – Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. Title 2 CFR Part 200, Uniform Guidance, section 516 – Audit findings, establishes reporting requirements for audit findings. Title 34 CFR Part 200, Subpart A – Improving Basic Programs Operated by Local Educational Agencies, section 200.19 – Other academic indicators – establishes the requirement for Districts to have official written documentation to confirm a student transferred out. Washington State Auditor's Office https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021290&isFinding=false&sp=false 2026-07-30 13:24:54