FINDING 2023-005
Finding Subject: COVID-19 - Education Stabilization Fund - Reporting
Summary of Finding:
Condition and Context
The School Corporation had not properly designed or implemented a system of internal controls,
which would include appropriate segregation of duties, that would likely be e...
FINDING 2023-005
Finding Subject: COVID-19 - Education Stabilization Fund - Reporting
Summary of Finding:
Condition and Context
The School Corporation had not properly designed or implemented a system of internal controls,
which would include appropriate segregation of duties, that would likely be effective in preventing, or
detecting and correcting, noncompliance. The School Corporation was required to submit an annual data
report to the Indiana Department of Education (IDOE) via JotForm, a form/report builder. Data to be
submitted included, but was not limited to, current period expenditures, prior period expenditures, and
expenditures per activity.
During the audit period the School Corporation submitted two ESSER I reports, two ESSER II
reports and two ESSER III reports, for a total of six reports. The annual data reports were to be prepared
and submitted by the School Principal and reviewed by the Executive Business Director; however, no
evidence of this review or oversight process could be provided. As such the annual data reports were
prepared and submitted to IDOE without an oversight or review process to prevent or detect and correct
errors.
In addition, five of the six reports submitted during the audit period were not supported by the
School Corporation’s records. The following errors were identified:
The ESSER I, Year 2 report, which had an applicable reporting period of October 1, 2020
through June 30, 201, reported $534,761 in expenditures. However, actual expenditures for
the applicable reporting period totaled $478,883.
The ESSER 1, Year 3 report which had an applicable reporting period of July 1, 2021 to June
30, 2022, reported $0 in expenditures. However, actual expenditures for the applicable
reporting period totaled $243,814.67.
The ESSER II, Year 1 report, which had an applicable reporting period of July 1, 2020 to June
30, 2021, reported $733 in expenditures. However, actual expenditures for the applicable
reporting period totaled $322,539.
The ESSER II, Year 2 report, which had an applicable reporting period of July 1, 2021 to June
30, 2022, reported $0 in expenditures. However, actual expenditures for the applicable
reporting period totaled $276,642.
The ESSER III, Year 2 report, which had an applicable reporting period of July 1, 2021 to June
30, 2022, reported $0 in expenditures. However, actual expenditures for the applicable
reporting period totaled $1,315,208.
The lack of internal controls and noncompliance were systemic issues throughout the audit
period. Views of Responsible Officials: We concur with the finding.
Description of Corrective Action Plan:
The school corporation will revise job descriptions to clearly identify segregation of duties for
Federal Fund Coordinators, employees responsible for calculating accurate disbursement reports and
reimbursement requests. Detailed expenditure reports will be generated for end of year reporting with the
Accounting Specialist, Accounts Payable Coordinator and the Executive Director of Business Services
completing a final review process providing signatures indicating review and accuracy before filing.
Anticipated Completion Date: March 1, 2024.