New Jersey Department of Education

State Aid Audit Unit (SAAU)

The State Aid Audit Unit (SAAU) is comprised of audit professionals with various years of private and governmental experience who are dedicated to ensuring:

  • Federal awards are expended in accordance with applicable legislation, regulations, and departmental guidelines; and
  • State financial assistance is determined appropriately based on accurate enrollment data and related costs are adequately supported.

The monitorings and audits performed by SAAU serves various stakeholders such as: 1) administrators, board office personnel and teachers at New Jersey school districts, charter schools, county vocational schools, and colleges; 2) other NJDOE offices; 3) United States Department of Education; 4) other State agencies; 5) CPA firms; and 6) the general public.

The SAAU partners with personnel from other departmental offices to conduct Collaborative Federal Monitoring (CFM) and to provide technical assistance if needed.  CFM is one of several ways the NJDOE monitors the Federal awards it receives from the United States Department of Education and passes through to New Jersey’s school districts and charter schools under:

  • The Elementary and Secondary Education Act (ESEA), as reauthorized by the Every Student Succeeds Act (ESSA);
  • The Individuals with Disabilities Education Act (IDEA), and
  • The Strengthening Career and Technical Education for the 21st Century Act (Perkins V).

Consistent with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. 200.332(d), NJDOE conducts CFM to provide reasonable assurance that grant funds are being used for their intended purpose and administered in conformity with Federal legislation, regulations, and the terms and conditions of the grant.  In addition, the SAAU facilitates the completion and publishing of program specific monitoring reports for one or more grants like Perkins.

Also, the SAAU audits:

  • Supporting documentation maintained by selected school districts to ensure the accuracy of enrollments reported on the Application for State School Aid and District Report of Transported Registered Students pursuant to the School Funding and Reform Act of 2008 (amended by P.L. 2018, Chapter 67);
  • The use of Extraordinary Aid for special education costs over $40,000 for district students; as well as costs above $55,000 for certain approved private school for students with disabilities placements; and
  • Chapter 192/193 Nonpublic Auxiliary Services State Aid entitlements paid to public school districts on behalf of nonpublic students.

Adjustments are made to reduce a district’s state aid entitlement based on corrected verified enrollments and costs incurred as deemed appropriate by SAAU following the conclusion of its audit(s).


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