Audit 34863

Reference Number Finding 2022-004 Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, COVID-19: ARP ESSER III Federal Award Identification Number and Year: 21528001015809, 21528042015809, 21528001057810, 21528042057810, 2022 Pass-through Entity ? Texas Education Agency Finding Type ? Material weakness in internal control over compliance Repeat Finding ? No Criteria ? Per 2 CFR ? 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award 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 for Reporting, it was noted that 2 out of 4 reports selected for testing did have evidence of review and approval. Identification of How Questioned Costs Were Computed ? N/A Questioned Costs ? None Cause ? Management did not follow their internal controls. Effect ? Certain reports did not have evidence of review and approval. Recommendation ? We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan ? The Academies have procedures in place requiring review and approval. Management believes that it was a limited number of items that may not have had written approval from a school administrator or the controller. Management will ensure that review and approval is properly documented by signature or an electronic approval.

Reference Number Finding 2022-004 Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, COVID-19: ARP ESSER III Federal Award Identification Number and Year: 21528001015809, 21528042015809, 21528001057810, 21528042057810, 2022 Pass-through Entity ? Texas Education Agency Finding Type ? Material weakness in internal control over compliance Repeat Finding ? No Criteria ? Per 2 CFR ? 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award 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 for Reporting, it was noted that 2 out of 4 reports selected for testing did have evidence of review and approval. Identification of How Questioned Costs Were Computed ? N/A Questioned Costs ? None Cause ? Management did not follow their internal controls. Effect ? Certain reports did not have evidence of review and approval. Recommendation ? We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan ? The Academies have procedures in place requiring review and approval. Management believes that it was a limited number of items that may not have had written approval from a school administrator or the controller. Management will ensure that review and approval is properly documented by signature or an electronic approval.