Audit 355506

FY End
2024-06-30
Total Expended
$36.64M
Findings
10
Programs
18
Year: 2024 Accepted: 2025-05-05

Organization Exclusion Status:

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Contacts

Name Title Type
YAMZGHKA5K33 Matt Miles Auditee
3174238380 Andrew Rinzel Auditor
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Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the School Corporation under programs of the federal government for the year ended June 30, 2024. The information in this Schedule 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 Schedule presents only a selected portion of the operations of the School Corporation, it is not intended to and does not present the financial position, changes in financial position or cash flows of the School Corporation. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For reimbursement grants passed through the State of Indiana, in accordance with Uniform Guidance, the award is deemed to be expended when evidence of approval is received from the State. For direct award grants, in accordance with Uniform Guidance, the award is deemed to be expended when the cash is disbursed. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The School Corporation has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: COVID-19 - Education Stabilization Fund Federal Agency: Department of Education Federal Assistance Listing Title and Number: COVID-19 - Education Stabilization Fund, 84.425U Criteria or Specific Requirement: Reporting - CFR Part 200.302(b) states, “The financial management system of each non-Federal entity must provide for 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 and 200.329." This is a repeat finding from the prior year (2023-002). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the reporting compliance requirements. (Other Instance of Noncompliance and Deficiency) Questioned Costs: None noted Context: The School Corporation submitted one ESSER III report where the expenses per the report did not tie to the ledger or the Schedule of Expenditures of Federal Awards by approximately $300,000. Effect: The ESSER III report was not supported by the School Corporation’s financial records. Cause: The School Corporation’s internal controls were not applied to the reporting process that required retention of documentation originally used to prepare the financial portion of the ESSER III report.. Recommendation: Management should establish a proper system of internal controls and strengthen its policies and procedures to ensure all reports submitted on behalf of the Education Stabilization Fund program funds are accurate and are reconciled to the School Corporation’s financial records. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: Special Education Cluster Federal Agency: Department of Education Federal Assistance Listing Title and Number: Special Education Grants to States, 84.027 and 84.173 Criteria or Specific Requirement: Procurement, suspension, and debarment - CFR Part 180.300 states, “when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified.” This is a repeat finding from the prior year (2023-001). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the procurement, suspension, and debarment compliance requirements. (Other Instance of Noncompliance and deficiency) Questioned Costs: None noted Context: The School Corporation entered into contracts with vendors that were reimbursed through funds granted under the Special Education Grants to States Program. The School Corporation failed to retain documentation of the verification of suspension or disbarment through an annual check of SAMS for such vendors. Effect: Goods or services were procured without retaining documentation that appropriate compliance guidelines were followed. Cause: The School Corporation’s internal controls did not require retention of suspension and debarment checks being performed. Recommendation: Management should perform a review to ensure controls in place are followed and documented for all applicable vendors and that documentation is retained to show the necessary suspension and debarment checks are completed regularly. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.
Federal Program Name: COVID-19 - Education Stabilization Fund Federal Agency: Department of Education Federal Assistance Listing Title and Number: COVID-19 - Education Stabilization Fund, 84.425U Criteria or Specific Requirement: Reporting - CFR Part 200.302(b) states, “The financial management system of each non-Federal entity must provide for 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 and 200.329." This is a repeat finding from the prior year (2023-002). Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with federal requirements related to the reporting compliance requirements. (Other Instance of Noncompliance and Deficiency) Questioned Costs: None noted Context: The School Corporation submitted one ESSER III report where the expenses per the report did not tie to the ledger or the Schedule of Expenditures of Federal Awards by approximately $300,000. Effect: The ESSER III report was not supported by the School Corporation’s financial records. Cause: The School Corporation’s internal controls were not applied to the reporting process that required retention of documentation originally used to prepare the financial portion of the ESSER III report.. Recommendation: Management should establish a proper system of internal controls and strengthen its policies and procedures to ensure all reports submitted on behalf of the Education Stabilization Fund program funds are accurate and are reconciled to the School Corporation’s financial records. Views of Responsible Officials and Planned Corrective Action: The District notes the finding as presented. See Corrective Action Plan prepared by management Persons responsible for implementing: Matthew Miles, CFO Anticipated completion date: July 15, 2025.