Audit 304557

U.S. Department of Education Education Innovation and Research CFDA #84.411C Activities Allowed Allowable Costs Period of Performance Material Weakness in Internal Control Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 19 non‐payroll expenditures tested lacked the required signature of the Director of Fiscal and Business Operations. Cause: Due to an oversight by CFA, the signatures of both the Director of Fiscal and Business Operations and the Manager of Business Operations were not present on the expenditure documentation. Effect: Improper expenses may be improperly approved. Questioned Costs: $0 Context/Sampling: A nonstatistical sample of 27 transactions out of 135 total transactions were selected for testing which accounted for $203,609 of $774,665 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA’s management require both the Director of Fiscal and Business Operations and the Manager of Business Operations to review and approve all non‐payroll expenditures. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education COVID‐19 Governor’s Emergency Education Relief (GEER) CFDA #84.425C Activities Allowed Allowable Costs Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 15 payroll expenditures tested lacked the required support to show that hours billed by program employees were allocated in accordance with actual time spent rather than predetermined budgeted amounts. Cause: Due to an oversight by CFA, documentation was not retained supporting actual time spent. Effect: Improper expenses may be charged to the federal program or charged at the wrong amount. Questioned Costs: $228 Context/Sampling: A nonstatistical sample of 60 transactions out of 361 total transactions were selected for testing which accounted for $62,746 of $819,086 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA require all documentation surrounding time spent on programs be retained. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education COVID‐19 Governor’s Emergency Education Relief (GEER) CFDA #84.425C Activities Allowed Allowable Costs Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 15 payroll expenditures tested allocated more time to the program than what was actually spent. Seven out of 15 payroll expenditures tested were improperly applied to the grant. Cause: Due to an oversight by CFA, the monthly payroll report was not updated to match the actual time spent on the program. Effect: Costs could be incorrectly applied to the program. Questioned Costs: $447 Context/Sampling: A nonstatistical sample of 60 transactions out of 361 total transactions were selected for testing which accounted for $62,746 of $819,086 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA implement controls to ensure payroll applied to the program matches time spent per supporting documentation. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education Education Innovation and Research CFDA #84.411C Activities Allowed Allowable Costs Period of Performance Material Weakness in Internal Control Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 19 non‐payroll expenditures tested lacked the required signature of the Director of Fiscal and Business Operations. Cause: Due to an oversight by CFA, the signatures of both the Director of Fiscal and Business Operations and the Manager of Business Operations were not present on the expenditure documentation. Effect: Improper expenses may be improperly approved. Questioned Costs: $0 Context/Sampling: A nonstatistical sample of 27 transactions out of 135 total transactions were selected for testing which accounted for $203,609 of $774,665 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA’s management require both the Director of Fiscal and Business Operations and the Manager of Business Operations to review and approve all non‐payroll expenditures. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education COVID‐19 Governor’s Emergency Education Relief (GEER) CFDA #84.425C Activities Allowed Allowable Costs Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 15 payroll expenditures tested lacked the required support to show that hours billed by program employees were allocated in accordance with actual time spent rather than predetermined budgeted amounts. Cause: Due to an oversight by CFA, documentation was not retained supporting actual time spent. Effect: Improper expenses may be charged to the federal program or charged at the wrong amount. Questioned Costs: $228 Context/Sampling: A nonstatistical sample of 60 transactions out of 361 total transactions were selected for testing which accounted for $62,746 of $819,086 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA require all documentation surrounding time spent on programs be retained. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education COVID‐19 Governor’s Emergency Education Relief (GEER) CFDA #84.425C Activities Allowed Allowable Costs Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 15 payroll expenditures tested allocated more time to the program than what was actually spent. Seven out of 15 payroll expenditures tested were improperly applied to the grant. Cause: Due to an oversight by CFA, the monthly payroll report was not updated to match the actual time spent on the program. Effect: Costs could be incorrectly applied to the program. Questioned Costs: $447 Context/Sampling: A nonstatistical sample of 60 transactions out of 361 total transactions were selected for testing which accounted for $62,746 of $819,086 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA implement controls to ensure payroll applied to the program matches time spent per supporting documentation. Views of Responsible Officials: Management agrees with the finding.