Audit 299547

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Information on the federal program: Subject: Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Qualified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: The School Corporation did not have internal controls in place to ensure that the School Corporation complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles compliance requirements. Cause: A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect: Without the proper design or implementation of the components of a system of internal control, including policies and procedures that provide segregation of duties and additional oversight as needed, the control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs: There were $82,276 of questioned costs identified. There were $78,462 of ESSER II funds that were drawn down in advance of the disbursement taking place, $3,013 of GEER funds drawn down in advance of the disbursement taking place, and $801 of questioned costs pertaining to payroll charges to the grant that were not supported by contracts and/or timecards. Context: In our testing of disbursements charged to the Education Stabilization Fund grants, we noted the ESSER II grant award, tracked in Fund 7931 has a positive cash balance at June 30, 2023. We were able to tie out the disbursements reported on the Annual Financial Report to underlying detail. We noted the School Corporation had drawn down $78,462 of ESSER II funds in advance of the expenditures taking place. The GEER grant award, which is tracked in Fund 7940, had a positive cash balance of $36,013 at June 30, 2023. This was a result of $33,000 of expenditures pertaining to the GEER fund being incorrectly recorded in the Operating fund during the year, rather than the applicable GEER fund. The remaining $3,013 is due to drawing down funds in advance of the expenditures taking place. During our testing payroll disbursements, we noted three selections in a sample of 60 payroll disbursements for which management was unable to provide adequate documentation to support the amounts disbursed to the employees. The employee in question went on medical leave during the school year, but continued to receive payments over the remaining months. Management was unable to provide an adjusted contract that agreed to the amounts being paid to the employee. These issues resulted in questioned costs of $801. Identification as a repeat finding: No Recommendation: We recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures, that are documented that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place to support disbursements that are charged to the respective grants as well as amounts being requested for draw downs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In our testing of one equipment selection, we noted the School Corporation did not add the capital asset to the capital asset listing. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

FINDING 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers: S425C200018, S425D200013, S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Original documents and related support were not maintained by the School Corporation. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the underlying fund ledger detail. Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect information. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not have a formal review process in place to review the Annual Data Reports that were required to be submitted during the audit period. Original copies of the reports and submission receipts were not maintained and therefore, we were unable to verify the reports were submitted by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30, 2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was understated by $549,488. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management review internal controls around the preparation, review, and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted and that the School Corporation maintain records to validate the reports were submitted timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.