Audit 299768

2023 – 002: Procurement, Suspension and Debarment Federal Agency: U.S. Department Education Federal Program Name: Charter School Program Assistance Listing Number: 84.282 Federal Award Identification Number and Year: U282A210017 Pass-Through Agency: Indiana Department of Education Pass-Through Number(s): None noted. Award Period: July 1, 2022 through June 30, 2023 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance (Modified Opinion) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The School should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the School did not have adequate internal controls designed to ensure vendors were procured following a proper procurement policy, as well as procedures in place to these vendors were not suspended or debarred. Questioned costs: None Context: During our testing, it was noted that the School did not have a proper procurement policy in place, thus no policy to follow. The School also, was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: As this was a first-year single audit for the School, the School was unaware of the federal Procurement and Suspension & Debarment requirements. Thus, the School was unaware the contractors were required to be reviewed prior to entering into a contract to ensure they were not suspended or debarred. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the School, implement a policy surrounding procurement which encompasses the federal requirements, and design controls to follow this policy and to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred. Views of responsible officials: There is no disagreement with the audit finding.

2023 – 002: Procurement, Suspension and Debarment Federal Agency: U.S. Department Education Federal Program Name: Charter School Program Assistance Listing Number: 84.282 Federal Award Identification Number and Year: U282A210017 Pass-Through Agency: Indiana Department of Education Pass-Through Number(s): None noted. Award Period: July 1, 2022 through June 30, 2023 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance (Modified Opinion) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The School should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the School did not have adequate internal controls designed to ensure vendors were procured following a proper procurement policy, as well as procedures in place to these vendors were not suspended or debarred. Questioned costs: None Context: During our testing, it was noted that the School did not have a proper procurement policy in place, thus no policy to follow. The School also, was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: As this was a first-year single audit for the School, the School was unaware of the federal Procurement and Suspension & Debarment requirements. Thus, the School was unaware the contractors were required to be reviewed prior to entering into a contract to ensure they were not suspended or debarred. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the School, implement a policy surrounding procurement which encompasses the federal requirements, and design controls to follow this policy and to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred. Views of responsible officials: There is no disagreement with the audit finding.