Finding Text
2024-003: U.S. Department of Education
Direct Program
Impact Aid, 84.041
Reporting
Significant Deficiency in Internal Control over Compliance
Grant Award Number: Affects all grant awards included under assistance listing numbers 84.041 on the Schedule of Expenditures of Federal Awards.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities must establish and maintain effective internal control 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.
A key component of effective internal control is adequate documentation to support reporting required under the grant award.
Condition: Impact aid annual application did not have evidence of the reporting figures used at the time of submission of the report.
Cause: Elko County School District did not have adequate internal controls to ensure maintenance of records used to support the reporting required under the grant award.
Effect: Reporting figures may be incorrect and not detected by Elko County School District.
Questioned Costs: None noted
Context/Sampling: An annual application is required and was selected for testing. Reporting was not maintained to substantiate key line items for current year membership on the survey date reported.
Repeat Finding from
Prior Year(s): No
Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of records used to complete required reporting for the Impact Aid grant award.
Views of Responsible
Officials: Management agrees with the finding.