Finding 1019361 (2022-009)

Material Weakness in Internal Control Over Compliance and Immaterial Instance of Noncompliance2022-009 Department of EducationFederal Financial Assistance Listing/CFDA Number 84.425Education Stabilization FundAllowable Costs/Activities Allowed or UnallowedCriteria ? A good system of internal control includes an adequate system for ensuring allexpenditures are properly recorded and allowable under the related federal grant in accordancewith 2 CFR 200.430(i).Condition ? In our testing of allowable costs and activities we noted four instances ofexpenditures that were not COVID related and therefore not allowable under the terms of thegrant.Cause ? Procedures are not in place to adequately identify unallowable costs or activities.Effect ? A lack of internal controls over allowable costs and activities could result in improperuse of federal funds and non-compliance with the provisions of applicable grant requirements.Questioned Costs ? $27,110Context/Sampling ? A nonstatistical sample of 60 transactions out of 994 total transactions wereselected for testing, which accounted for $833,248 of $1,232,609 of federal programexpenditures.Repeat Finding from Prior Years ? No.Recommendation ? The School should review internal control procedures to ensure federalexpenditures are being properly reviewed for unallowable costs and activities.Views of Responsible Officials ? There is no disagreement with the audit finding.