Finding Text
Finding Type. Material Noncompliance/Material Weakness in Internal Control over Compliance (Reporting). Program. U.S. Department of Education; Education Innovation and Research, Supporting Preschool and Kindergarten Students; ALN 84.411C; Award Number U411C160089. Criteria. Recipients use the Federal Financial Report (FFR) to report expenditures and other financial information for federal awards. Such reports must be complete and accurate. Condition. We reviewed the final FFR, which was not complete and accurate. Required information missing from the FFR included cash receipt, cash disbursement, and expenditure data. Cause. The Organization does not appear to understand the reporting requirements. In addition, there was no evidence that the report was reviewed and approved. Effect. The Organization reported incorrect financial information to the grantor. Questioned Costs. No costs are required to be reported as a result of this finding. Recommendation. We recommend that all employees administering federal grants and having primary responsibility for compliance with grant requirements be provided the necessary training to be able to identify and comply with such requirements. All reports should have evidence of review and approval. View of Responsible Officials. A policy around federal programs has been created and will be implemented for all future federal grants, which includes the need for all parties who are involved in the administration to have federal funds training as well as comply with the policy. A position has been added to the organization to oversee all grants to ensure future compliance.