Introduction: Materiality by Compliance Requirement Matrix Planning Federal Materiality by Compliance Requirement See Footnotes 1-6 the matrix table for further explanation, in particular, review note 6 which discusses tailoring the matrix assessments (1) (2) (6) (6) (3) (4) (5) (5) (6) Compliance Requirement Applicable per Compl. Suppl. Direct & material to program / entity Monetary or nonmonetary If monetary, population subject to require. Inherent risk (IR) assess. Final control risk (CR) assess. Detection risk of noncompl. Overall audit risk of noncompl. Federal materiality by compl. requirement (Yes or No) (Yes or No) (M/N) (Dollars) (High/Low) (High/Low) (High/Low) (High/Low) typically 5% of population subject to requirement A Activities Allowed or Unallowed Yes M 5% B Allowable Costs/Cost Principles Yes M 5% C Cash Management Yes N 5% D RESERVED E Eligibility No F Equipment & Real Property Mgmt No G Matching, Level of Effort, Earmark Yes M 5% H Period of Availability (Performance) Yes M 5% I Procurement & Sus. & Debarment No J Program Income No K RESERVED L Reporting Yes N 5% M Subrecipient Monitoring Yes N 5% N Special Tests & Provisions – Participation of Private School Children Yes N 5%
Audit Objectives and Control Testing What Control Procedures Address the Compliance Requirement (reference/link to documentation or where the testing was performed): Basis for the control (reports, resources, etc. providing information needed to understand requirements and prevent or identify and correct errors): Control Procedure (description of how auditee uses the to prevent, or identify and correct or detect errors): Person(s) responsible for performing the control procedure (title): Description of evidence documenting the control was applied (i.e. sampling unit):
verify agreement or perform alternative procedures to verify the accuracy and completeness of the reports and that they agree with the accounting records. If reports require information on an accrual basis and the entity does not prepare its accounting records on an accrual basis, determine whether the reported information is supported by available documentation. (4) For any discrepancies noted in SF-425 reports concerning cash status when the advance payment method is used, review subsequent SF-425 reports to ascertain if the discrepancies were appropriately resolved with the applicable payment system. Determine whether amounts reported were only amounts actually expended during the report period, including obligations liquidated within 90 days of the report period (i.e., encumbrances should not be included). Determine whether the report was submitted within 90 days after the end of the project period. Determine whether the amounts reported liquidated within the period of performance (see section H). b. Performance and special reports - Not Applicable c. For each type of report (1) When intervening computations or calculations are required between the records and the reports, trace reported data elements to supporting worksheets or other documentation that link reports to the data. (2) Test mathematical accuracy of reports and supporting worksheets. 4. Obtain written representation from management that the reports provided to the auditor are true copies of the reports submitted or electronically transmitted to the Federal awarding agency, the applicable payment system, or pass-through entity in the case of a subrecipient.
Suggested Procedures Suggested Procedures – Compliance (Substantive Tests) (Reference / link to documentation testing was performed testing): a. Verify, by reviewing minutes of meetings and other appropriate documents, that the SEA or LEA conducted timely consultation with private school officials in making its determinations and set aside the required amount for private school children. b. Review program expenditure and other records to verify that educational services that were planned were provided. c. For Title I, Part A, verify that: The per pupil allocation (PPA) generated by private school children from low-income families living in participating public school attendance areas is equal to the PPA generated by public school children from low-income families living in the same attendance areas; to provide equitable services to private school students were available, as applicable, from funds, if any, reserved off the top of the LEA’s Part A allocation for instructional and related activities at the district level; and Funds to provide equitable services to teachers and families of participating private school students were available from reservations of funds for professional development and parent involvement. d. If the LEA provides services to eligible private school students under an arrangement with a provider, verify that the LEA retains proper administration and control by having a written contract that: Describes the services to be provided; and Provides that the LEA retains ownership of materials, equipment, and property purchased with Federal I funds. e. For programs other than Title I, Part A, verify that expenditures are equal on a per-pupil basis for public and private school students, teachers and other educational personnel, taking into consideration their numbers and needs as required by 34 CFR section 299.7.