Audit 312330

FY End
2022-06-30
Total Expended
$11.63M
Findings
20
Programs
11
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
422069 2022-004 Significant Deficiency - N
422070 2022-004 Significant Deficiency - N
422071 2022-004 Significant Deficiency - N
422072 2022-004 Significant Deficiency - N
422073 2022-002 Significant Deficiency - N
422074 2022-002 Significant Deficiency - N
422075 2022-002 Significant Deficiency - N
422076 2022-003 Material Weakness - L
422077 2022-003 Material Weakness - L
422078 2022-003 Material Weakness - L
998511 2022-004 Significant Deficiency - N
998512 2022-004 Significant Deficiency - N
998513 2022-004 Significant Deficiency - N
998514 2022-004 Significant Deficiency - N
998515 2022-002 Significant Deficiency - N
998516 2022-002 Significant Deficiency - N
998517 2022-002 Significant Deficiency - N
998518 2022-003 Material Weakness - L
998519 2022-003 Material Weakness - L
998520 2022-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $2.57M Yes 2
84.027 Special Education_grants to States $901,430 - 0
10.553 School Breakfast Program $541,755 Yes 0
84.010 Title I Grants to Local Educational Agencies $231,237 Yes 1
10.555 National School Lunch Program $91,532 Yes 0
84.196 Education for Homeless Children and Youth $53,966 - 0
84.367 Improving Teacher Quality State Grants $39,025 - 0
84.173 Special Education_preschool Grants $30,917 - 0
84.424 Student Support and Academic Enrichment Program $5,819 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0
84.173 Special Education_grants to States $185 - 0

Contacts

Name Title Type
EZSJR81QLJ24 Jake Allen Auditee
3178313950 Shannon Small Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1.Summary of Significant Accounting PoliciesA.Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of the School Corporation under programs of the federal government for the years ended June 30, 2021 and 2022. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a select portion of the operations of the School Corporation, it is not intended to and does not present the financial position or changes in financial position of the School Corporation.The Uniform Guidance requires an annual audit of nonfederal entities expending a total amount of federal awards equal to or in excess of $750,000 in any fiscal year unless by constitution or statute a less frequent audit is required. In accordance with Indiana Code (IC 5-11-1-25), audits of school corporations shall be conducted biennially. Such audits shall include both years within the biennial period.B.Other Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the cash basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expended when the reimbursement is received. De Minimis Rate Used: N Rate Explanation: Note 2.Indirect Cost RateThe School Corporation has elected (not) to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Prevailing Wage Rate RequirementsFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: CFR section 200.303 states in part:"The non-Federal entity must:(a) Establish and maintain effective internal control over 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) "29 CFR 5.5 states in part:a.The Agency head shall cause or require the contracting officer to insert in full in any contract in excess of$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in ?5.1, the following clauses?(1) Minimum wages.(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics?(3)(ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency).2 CFR 200 Appendix II states in part:In addition to other provisions required by the Federal agency or non-Federal entity; all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable. . . .(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week ?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 Special Tests and Provisions ? Wage Rate Requirements compliance requirements.Questioned costs: None.Context: During the process of obtaining an understanding of internal controls and processing of construction contracts and testing of construction contracts, we noted two of the 5 contracts tested did not include the prevailing wage section in the executed contract and no certified payrolls were obtained.Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. The School Corporation did not have an internal control in place to review the underlying expenditures to determine if they were allowable in accordance with federal requirements.Effect: The failure to design and implement an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Special Tests and Provisions ? Wage Rate Requirements compliance requirement could result in the loss of future federal funds to the School Corporation.Repeat Finding: NoRecommendation: We recommend the School Corporation implement a formal process to ensure the required weekly payroll reports certifications are collected and reviewed to ensure compliance with the wage rate requirements.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Prevailing Wage Rate RequirementsFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: CFR section 200.303 states in part:"The non-Federal entity must:(a) Establish and maintain effective internal control over 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) "29 CFR 5.5 states in part:a.The Agency head shall cause or require the contracting officer to insert in full in any contract in excess of$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in ?5.1, the following clauses?(1) Minimum wages.(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics?(3)(ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency).2 CFR 200 Appendix II states in part:In addition to other provisions required by the Federal agency or non-Federal entity; all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable. . . .(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week ?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 Special Tests and Provisions ? Wage Rate Requirements compliance requirements.Questioned costs: None.Context: During the process of obtaining an understanding of internal controls and processing of construction contracts and testing of construction contracts, we noted two of the 5 contracts tested did not include the prevailing wage section in the executed contract and no certified payrolls were obtained.Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. The School Corporation did not have an internal control in place to review the underlying expenditures to determine if they were allowable in accordance with federal requirements.Effect: The failure to design and implement an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Special Tests and Provisions ? Wage Rate Requirements compliance requirement could result in the loss of future federal funds to the School Corporation.Repeat Finding: NoRecommendation: We recommend the School Corporation implement a formal process to ensure the required weekly payroll reports certifications are collected and reviewed to ensure compliance with the wage rate requirements.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Prevailing Wage Rate RequirementsFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: CFR section 200.303 states in part:"The non-Federal entity must:(a) Establish and maintain effective internal control over 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) "29 CFR 5.5 states in part:a.The Agency head shall cause or require the contracting officer to insert in full in any contract in excess of$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in ?5.1, the following clauses?(1) Minimum wages.(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics?(3)(ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency).2 CFR 200 Appendix II states in part:In addition to other provisions required by the Federal agency or non-Federal entity; all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable. . . .(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week ?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 Special Tests and Provisions ? Wage Rate Requirements compliance requirements.Questioned costs: None.Context: During the process of obtaining an understanding of internal controls and processing of construction contracts and testing of construction contracts, we noted two of the 5 contracts tested did not include the prevailing wage section in the executed contract and no certified payrolls were obtained.Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. The School Corporation did not have an internal control in place to review the underlying expenditures to determine if they were allowable in accordance with federal requirements.Effect: The failure to design and implement an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Special Tests and Provisions ? Wage Rate Requirements compliance requirement could result in the loss of future federal funds to the School Corporation.Repeat Finding: NoRecommendation: We recommend the School Corporation implement a formal process to ensure the required weekly payroll reports certifications are collected and reviewed to ensure compliance with the wage rate requirements.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003: Internal Control Over Compliance Related to ReportingFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Material Weakness in Internal Control over ComplianceCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the reporting process, we noted that the annual reports submitted did not have documentation retained of review and approval prior to submission.Questioned costs: NoneContext: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed.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 design and implement an effective internal control system enabled material noncompliance to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding
2022 ? 003: Internal Control Over Compliance Related to ReportingFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Material Weakness in Internal Control over ComplianceCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the reporting process, we noted that the annual reports submitted did not have documentation retained of review and approval prior to submission.Questioned costs: NoneContext: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed.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 design and implement an effective internal control system enabled material noncompliance to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding
2022 ? 003: Internal Control Over Compliance Related to ReportingFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Material Weakness in Internal Control over ComplianceCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the reporting process, we noted that the annual reports submitted did not have documentation retained of review and approval prior to submission.Questioned costs: NoneContext: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed.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 design and implement an effective internal control system enabled material noncompliance to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Prevailing Wage Rate RequirementsFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: CFR section 200.303 states in part:"The non-Federal entity must:(a) Establish and maintain effective internal control over 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) "29 CFR 5.5 states in part:a.The Agency head shall cause or require the contracting officer to insert in full in any contract in excess of$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in ?5.1, the following clauses?(1) Minimum wages.(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics?(3)(ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency).2 CFR 200 Appendix II states in part:In addition to other provisions required by the Federal agency or non-Federal entity; all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable. . . .(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week ?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 Special Tests and Provisions ? Wage Rate Requirements compliance requirements.Questioned costs: None.Context: During the process of obtaining an understanding of internal controls and processing of construction contracts and testing of construction contracts, we noted two of the 5 contracts tested did not include the prevailing wage section in the executed contract and no certified payrolls were obtained.Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. The School Corporation did not have an internal control in place to review the underlying expenditures to determine if they were allowable in accordance with federal requirements.Effect: The failure to design and implement an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Special Tests and Provisions ? Wage Rate Requirements compliance requirement could result in the loss of future federal funds to the School Corporation.Repeat Finding: NoRecommendation: We recommend the School Corporation implement a formal process to ensure the required weekly payroll reports certifications are collected and reviewed to ensure compliance with the wage rate requirements.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Prevailing Wage Rate RequirementsFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: CFR section 200.303 states in part:"The non-Federal entity must:(a) Establish and maintain effective internal control over 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) "29 CFR 5.5 states in part:a.The Agency head shall cause or require the contracting officer to insert in full in any contract in excess of$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in ?5.1, the following clauses?(1) Minimum wages.(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics?(3)(ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency).2 CFR 200 Appendix II states in part:In addition to other provisions required by the Federal agency or non-Federal entity; all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable. . . .(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week ?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 Special Tests and Provisions ? Wage Rate Requirements compliance requirements.Questioned costs: None.Context: During the process of obtaining an understanding of internal controls and processing of construction contracts and testing of construction contracts, we noted two of the 5 contracts tested did not include the prevailing wage section in the executed contract and no certified payrolls were obtained.Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. The School Corporation did not have an internal control in place to review the underlying expenditures to determine if they were allowable in accordance with federal requirements.Effect: The failure to design and implement an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Special Tests and Provisions ? Wage Rate Requirements compliance requirement could result in the loss of future federal funds to the School Corporation.Repeat Finding: NoRecommendation: We recommend the School Corporation implement a formal process to ensure the required weekly payroll reports certifications are collected and reviewed to ensure compliance with the wage rate requirements.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Prevailing Wage Rate RequirementsFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: CFR section 200.303 states in part:"The non-Federal entity must:(a) Establish and maintain effective internal control over 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) "29 CFR 5.5 states in part:a.The Agency head shall cause or require the contracting officer to insert in full in any contract in excess of$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in ?5.1, the following clauses?(1) Minimum wages.(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics?(3)(ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency).2 CFR 200 Appendix II states in part:In addition to other provisions required by the Federal agency or non-Federal entity; all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable. . . .(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week ?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 Special Tests and Provisions ? Wage Rate Requirements compliance requirements.Questioned costs: None.Context: During the process of obtaining an understanding of internal controls and processing of construction contracts and testing of construction contracts, we noted two of the 5 contracts tested did not include the prevailing wage section in the executed contract and no certified payrolls were obtained.Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. The School Corporation did not have an internal control in place to review the underlying expenditures to determine if they were allowable in accordance with federal requirements.Effect: The failure to design and implement an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Special Tests and Provisions ? Wage Rate Requirements compliance requirement could result in the loss of future federal funds to the School Corporation.Repeat Finding: NoRecommendation: We recommend the School Corporation implement a formal process to ensure the required weekly payroll reports certifications are collected and reviewed to ensure compliance with the wage rate requirements.Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003: Internal Control Over Compliance Related to ReportingFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Material Weakness in Internal Control over ComplianceCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the reporting process, we noted that the annual reports submitted did not have documentation retained of review and approval prior to submission.Questioned costs: NoneContext: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed.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 design and implement an effective internal control system enabled material noncompliance to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding
2022 ? 003: Internal Control Over Compliance Related to ReportingFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Material Weakness in Internal Control over ComplianceCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the reporting process, we noted that the annual reports submitted did not have documentation retained of review and approval prior to submission.Questioned costs: NoneContext: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed.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 design and implement an effective internal control system enabled material noncompliance to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding
2022 ? 003: Internal Control Over Compliance Related to ReportingFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Material Weakness in Internal Control over ComplianceCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over 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: During our testing of the reporting process, we noted that the annual reports submitted did not have documentation retained of review and approval prior to submission.Questioned costs: NoneContext: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed.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 design and implement an effective internal control system enabled material noncompliance to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding