PROGRAM INCOME - MATERIAL WEAKNESS Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks HOME Investment Partnership Program ALN 14.239; passed through the County of Berks Criteria Per 2 CFR section 200.307(a), program income must be expended prior to requesting Federal Funds. The Authority receives program income under the above grants and must report the receipt and application of program income within the United States Department of Housing and Urban Development Integrated Disbursement and Information System (IDIS). Condition/Cause The Authority did not properly report program income in IDIS during the year, and therefore could not support that program income was applied prior to drawing down entitlement funding. In some instances, program income received was not reported in IDIS, and one receipt was entered into IDIS twice. When received, program income is reported in a separate general ledger account in the financial reporting software. The Fiscal Officer then enters the program income into IDIS on a regular basis. No control exists to ensure completeness or accuracy of information entered into IDIS related to program income. Effect The Authority cannot provide documentation of compliance with the program income requirements of the programs during 2022. Questioned Costs HOME Investment Partnership Program - $64,128 Community Development Block Grant/Entitlement Grant - Less than $25,000 Context For the HOME Investment Partnership Program, a receipt of $10,000 was entered twice into IDIS. Receipts of $74,128.05 were identified as program income on the general ledger but not entered into IDIS. For the Community Development Block Grant Program, program income identified on the general ledger was $24,221 higher than program income reported in IDIS. The difference could not be identified by management. Repeat Finding No. Recommendation We recommend the Authority develop a procedure/internal control to ensure program income is entered accurately and completely within IDIS. This will allow for documentation to support that program income is being utilized prior to drawing down entitlement funding. This will also ensure compliance with reporting requirements for reports generated within IDIS on an annual basis. Management Response See corrective action plan included in this report package.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering & Office of Cyber Infrastructure AL No.: 47.050, 47.070, 47.079 & 47.080 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019 -05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), OAC-1931278 (10/1/2019 – 09/30/2022), OAC- 1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OAC-2103780 (10/01/2021 – 09/30/2026), OAC-2118329 (10/01/2021 – 09/30/2026),OISE-1855654 (05/15/2019 – 12/31/2023) & OAC-1664061 (10/01/17 – 09/30/2022) Pass Through Entity: Utah State University MW2022-008 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $12,605 for the year ended December 31, 2022.CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2022) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2022. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2021-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307.View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering & Office of Cyber Infrastructure AL No.: 47.050, 47.070, 47.079 & 47.080 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019 -05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), OAC-1931278 (10/1/2019 – 09/30/2022), OAC- 1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OAC-2103780 (10/01/2021 – 09/30/2026), OAC-2118329 (10/01/2021 – 09/30/2026),OISE-1855654 (05/15/2019 – 12/31/2023) & OAC-1664061 (10/01/17 – 09/30/2022) Pass Through Entity: Utah State University MW2022-008 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $12,605 for the year ended December 31, 2022.CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2022) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2022. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2021-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307.View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering & Office of Cyber Infrastructure AL No.: 47.050, 47.070, 47.079 & 47.080 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019 -05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), OAC-1931278 (10/1/2019 – 09/30/2022), OAC- 1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OAC-2103780 (10/01/2021 – 09/30/2026), OAC-2118329 (10/01/2021 – 09/30/2026),OISE-1855654 (05/15/2019 – 12/31/2023) & OAC-1664061 (10/01/17 – 09/30/2022) Pass Through Entity: Utah State University MW2022-008 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $12,605 for the year ended December 31, 2022.CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2022) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2022. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2021-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307.View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering & Office of Cyber Infrastructure AL No.: 47.050, 47.070, 47.079 & 47.080 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019 -05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), OAC-1931278 (10/1/2019 – 09/30/2022), OAC- 1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OAC-2103780 (10/01/2021 – 09/30/2026), OAC-2118329 (10/01/2021 – 09/30/2026),OISE-1855654 (05/15/2019 – 12/31/2023) & OAC-1664061 (10/01/17 – 09/30/2022) Pass Through Entity: Utah State University MW2022-008 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $12,605 for the year ended December 31, 2022.CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2022) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2022. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2021-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307.View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
2022-002 Program Income Program: 14.267 Continuum of Care Program Criteria: Housing program tenants are required to pay up to 30% of their income for rent. Eligibility and rent determination evaluations are performed for new tenants before move-in and annually for existing tenants to determine their portion of rent to pay. In accordance with 2 CFR 200.307, program income (in this case, tenant rent) must be correctly determined and properly recorded in the accounting records. Condition: For two out of 10 transactions tested, the amount of rent collected by The Center from the tenant was more than the amount determined on the Eligibility and Rent Determination form. Cause: There is no process to regularly review tenant rent to ensure amounts collected are accurate and agree with the Eligibility and Rent Determination form. Effect: One tenant overpaid their tenant portion of rent for a combined $44 during the fiscal year. Questioned Costs: The conditions did not result in questioned costs greater than $25,000. Context: Rent was overpaid by one tenant. Repeat Finding: Yes; 2021-003. Recommendation: The Center should develop a policy for handling underpayments and overpayments of tenant rent. Rent collected should be compared to the amount determined on the Eligibility and Rent Determination form on a monthly basis to review for inconsistencies and, when differences arise, they should be timely investigated and followed-up on with the appropriate corrective action, per the established policy. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022-002 Program Income Program: 14.267 Continuum of Care Program Criteria: Housing program tenants are required to pay up to 30% of their income for rent. Eligibility and rent determination evaluations are performed for new tenants before move-in and annually for existing tenants to determine their portion of rent to pay. In accordance with 2 CFR 200.307, program income (in this case, tenant rent) must be correctly determined and properly recorded in the accounting records. Condition: For two out of 10 transactions tested, the amount of rent collected by The Center from the tenant was more than the amount determined on the Eligibility and Rent Determination form. Cause: There is no process to regularly review tenant rent to ensure amounts collected are accurate and agree with the Eligibility and Rent Determination form. Effect: One tenant overpaid their tenant portion of rent for a combined $44 during the fiscal year. Questioned Costs: The conditions did not result in questioned costs greater than $25,000. Context: Rent was overpaid by one tenant. Repeat Finding: Yes; 2021-003. Recommendation: The Center should develop a policy for handling underpayments and overpayments of tenant rent. Rent collected should be compared to the amount determined on the Eligibility and Rent Determination form on a monthly basis to review for inconsistencies and, when differences arise, they should be timely investigated and followed-up on with the appropriate corrective action, per the established policy. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: FY 2020-21, FY 2021-22 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance (unless there is a requirement for disposition of program income after the end of the period of performance as provided in 2 CFR section 200.307(f)). Program income must be properly determined or calculated in accordance with stated criteria, and program income may only collected from allowable sources. The School Corporation should have controls in place to ensure the existence and accuracy of all program income earned and used by the grant.2 CFR 200.303 states in part: ?The Non-Federal entity must: (b) 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: The School Corporation was unable to provide documentation to support amounts, usage of funds, and controls surrounding program income. Questioned costs: None Context: In a statistically valid sample, 5 of 5 transactions tested lacked supporting documentation. Cause: No internal controls implemented Effect: Lack of proper documentation of controls over compliance with program income requirements could result in improper recording and usage of income earned by the program. This could ultimately result in questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior audit report. Prior audit finding number was 2020-002. Recommendation: We recommend that School Corporation management establish a system of internal controls to ensure compliance with the grant agreement and program income requirements. Documentation should be retained to support the existence and accuracy of all program income earned. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
2022 ? 002 ? Child Nutrition Cluster Program Income Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Other Matters. Criteria: 2 CFR 200.303 states in part: "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). . . ." 2 CFR 200.307 states in part: ?Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income that the non-Federal entity did not anticipate at the time of the Federal award must be used to reduce the Federal award and non-Federal entity contributions rather than to increase the funds committed to the project.? Condition: During our testing, we noted the Crawfordsville Community School Corporation did not have adequate internal controls designed to ensure that program income requirements were being met. Questioned costs: Known - $620.87, Likely - $6,269.37. Known and questioned costs less than program materiality. Context: Using a statistically valid sample, CLA identified noncompliance in 2 of 60 samples tested. These related to 1) "extra money" for which support was unable to be provided to identify the source to verify it is an appropriate source of program income, and 2) a manual calculation error in the recording of one week's program income. Both of these may have been caught through an effective internal control structure, however there was no evidence for any of the selections that an appropriate control structure was in place and operating to ensure program income was properly determined and recorded. Cause: Management had not previously developed a system of internal controls that would ensure compliance with the program income compliance requirement. This was identified in the prior audit, but due to the timing of the prior audit recommendations, changes to implement an effective internal control structure did not occur until late 2022.. Effect: The Crawfordsville Community School Corporation is not in compliance with program requirements over program income. The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the federal program income compliance requirement. Noncompliance may go undetected. Repeat Finding: No. Recommendation: We recommend the Crawfordsville Community School Corporation establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC- 1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021) Pass Through Entity: Utah State University & University of Cincinnati MW2021-009 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $31,525 for the year ended December 31, 2021. CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2021) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2021. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s reputation and future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2020-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC- 1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021) Pass Through Entity: Utah State University & University of Cincinnati MW2021-009 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $31,525 for the year ended December 31, 2021. CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2021) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2021. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s reputation and future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2020-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC- 1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021) Pass Through Entity: Utah State University & University of Cincinnati MW2021-009 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $31,525 for the year ended December 31, 2021. CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2021) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2021. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s reputation and future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2020-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC- 1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021) Pass Through Entity: Utah State University & University of Cincinnati MW2021-009 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $31,525 for the year ended December 31, 2021. CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2021) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2021. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s reputation and future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2020-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC- 1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021) Pass Through Entity: Utah State University & University of Cincinnati MW2021-009 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $31,525 for the year ended December 31, 2021. CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2021) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2021. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s reputation and future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2020-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC- 1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021) Pass Through Entity: Utah State University & University of Cincinnati MW2021-009 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $31,525 for the year ended December 31, 2021. CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2021) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2021. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s reputation and future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2020-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Federal agency name: U.S. National Science Foundation Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC- 1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021) Pass Through Entity: Utah State University & University of Cincinnati MW2021-009 PROGRAM INCOME Material Weakness Criteria Pursuant to 2 CFR 200 for award objectives and the regulations at 2 CFR 200.307, program income is defined as “Gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the federal award during the period of performance” by 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. Condition Program income consists of registration fees collected for training, meetings or workshops and the proceeds from the sale of publications as a result of the federal award during the period of performance. Program income is treated as an additive to the federal funds received by CUAHSI. During a drawdown, program income reduces the amount that is requested to cover reimbursable costs through the Flexible Billing module. This allows program income to be applied to the award before a reimbursement is requested from NSF adding the value of program income received to the awarded amount. Program income reporting is due forty five (45) days after the end of the federal fiscal year. NSF requires that all cumulative program income is reported for all open grants and agreements in the current year. CUAHSI program income totaled $31,525 for the year ended December 31, 2021. CUAHSI failed to submit the required Program Income Reporting Worksheet by the required deadline of forty five (45) days after the end of the federal fiscal year (November 15, 2021) to ensure with the program income policies in accordance with the UG for the year ended December 31, 2021. Cause & Context Lack of resources and detailed attention to the risks, along with circumvention of controls has resulted in weak internal controls, and conflicting or incomplete policies and procedures. Effect Non-compliance can lead to penalties, fines, or even termination of the contract. It may also damage CUAHSI’s reputation and future eligibility for federal funding and jeopardize CUAHSI’s ability to secure future grants or contracts from other funding agencies. Granting organizations typically prioritize funding recipients with a track record of compliance and accountability. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2020-009. Recommendation The auditor recommends that CUAHSI develops and implements controls over policies consistent with 2 CFR 200.307. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.