FSA-2014-3510

Our audit identified matters that are considered reportable under Government Auditing Standards and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. These items included: (1) The Department did not monitor Local Education Agencies (LEAs) and charter high schools to verify that the adjustments to the regulatory adjusted cohort and the resulting adjustments to graduation rates were appropriate; (2) The Department incorrectly reported the Elementary and Secondary Education Act (ESEA) school status for 156 schools on its public website for North Carolina School Report Cards; (3) Title I Grants to Local Education Agencies (Title I) program monitors failed to complete and review monitoring tracking forms to ensure receipt of subrecipients' corrective action plans; (4) Twenty-First Century Community Learning Center (Twenty-First) program monitors failed to adequately complete monitoring reports; (5) The Department did not report the results of its fiscal monitoring to subrecipients in a timely manner, preventing subrecipients from taking corrective action; and (6) The Department did not have adequate documentation to show that temporary and contract employees' salaries charged to the Race to the Top grant were based on actual time and effort spent working on the grant. Details about each item are provided in the Findings, Recommendations, and Responses section of the report.