Audit committee accepts MSAP audit, finds weaknesses in monitoring and financial oversight for Lighthouse project

The Sanchata Public School System Audit Committee on April 24 accepted an internal audit of the federal Magnet Schools Assistance Program (MSAP) grant that funds the Lighthouse STEAM initiative at AB Williams Elementary School, Hubert Middle School and Savannah High.

Internal auditor Shauna Chapman said the grant, awarded in fiscal 2021 and described in the audit as totaling $14,772,149, was the subject of reviews that identified weaknesses in performance monitoring, financial oversight and documentation tying professional development to grant objectives. “Several areas for improvement were identified in the program implementation, the financial oversight and the effectiveness of key processes supporting the grant objectives,” Chapman told the committee.

The audit said it reviewed the district’s US Department of Education annual performance report for the period April 1, 2023, through March 31, 2024, and found the report did not outline strategies to address barriers preventing achievement of program goals. Auditors sampled 42 invoices and reported that 24 of the sampled invoices were shipped to one of the magnet schools and 18 to the district administrative office; auditors characterized the sample as representing roughly 14% of non‑salary expenditures and about 2.19% of non‑salary transactions in the sampled universe.

Chapman recommended the district develop and implement a comprehensive grant monitoring framework that integrates compliance oversight, performance measurement and financial inspection, and that the framework include clearly defined key performance indicators (KPIs) and procedures to evaluate allowability of transactions. Management’s written response, included in the audit packet, commits to developing that grant monitoring framework and a cross‑departmental collaboration action plan; the completion date listed in the packet is June 2025.

The audit’s second observation focused on professional development and coordination between the MSAP team and school leadership. Auditors found that, although teachers completed the 25 hours of required professional development, documentation was insufficient to show how training directly supports the grant’s intended outcomes. The audit recommended adding a professional‑development component to the new monitoring framework to align content with instructional needs and gaps. Management’s response commits to a professional development scope and sequence aligned with school accountability plans and to regular instructional walkthroughs; that action is scheduled for completion in July 2025.

Committee members pressed on whether identified deficiencies put federal funding at risk. A district official said the grant is reimbursable and “we are already in compliance” with federal reviews and reimbursements, adding the district does not anticipate losing funds. Another district speaker noted the district has discussed the grant’s design with the U.S. Department of Education and the Office for Civil Rights and said they do not expect the district to be found in violation of federal nondiscrimination requirements.

Board members also raised questions about program outcomes and sustainability. One member said she reviewed the original grant application and was concerned the district was not tracking academic outcomes as rigorously as the application described; she called for “intentional” measurement of outcomes to avoid repeating unproven strategies. A separate committee member noted inconsistency across schools, saying AB Williams showed relatively better implementation than Savannah High and Hubert Middle; district staff said improving consistency is part of the next steps.

The audit packet notes the MSAP grant initially covered a five‑year period and that the district reported the grant was extended an additional year with district sustainment planned for three years after the extension; district staff stated that, under that timeline, grant‑funded activities would continue into 2030. The packet also records that a grant writer was retained through board ratification on July 13, 2022, and that total payments to the grant writer to date are $473,114, with a final payment scheduled for the current year.

After discussion, a motion to accept the MSAP grant audit was moved, seconded and approved by voice vote.

The committee accepted the audit with management actions on record and a plan to return with progress reports, including the new monitoring framework and the professional development scope and sequence, by the dates listed in management’s responses.

Looking ahead, internal audit staff said the MSAP monitoring work would be part of ongoing audit follow‑up and that the department expects to report progress at future meetings.