NORTH CONEJOS SCHOOL DISTRICT RE-1J

Finding 2024-002: COVID-19 Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425R, and 84.425U U.S. Department of Education Pass-through: Colorado Department of Education Compliance Requirement: Reporting Grant No.: 4420, 4414, 9414, 6427 Type of Finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: Section 2001 of the American Rescue Plan (ARP) Act requires grantees and sub-grantees receiving funding under the Education Stabilization Fund (ESF) to submit an annual financial report. Annual reports shall be supported by underlying accounting or performance records and are fairly presented in accordance with program requirements. Condition: We examined the Elementary and Secondary Emergency Relief (ESSER) III Annual Financial Report for the Education Stabilization Fund grant submitted in FY2024 for FY2023 activity. Additional expenditures of $418,489 should have been reported to agree to the supporting accounting records. Cause: The District does not have a complete system of internal controls that provides for the review and accurate completion of the Annual Financial Report. Questioned Costs: None Effect: The Annual Financial Report contained errors and was not in compliance with the financial reporting requirements of the ARP Act. Recommendation: The District should strengthen its internal controls with adopted policies and procedures to ensure accurate federal grant financial reporting. Management's Response: See Corrective Action Plan.