Finding Text
FINDING 2024-002
Information on the federal program:
Subject: Education Stabilization Fund (ESSER) – Internal Controls
Federal Agency: Department of Education
Federal Program: COVID-19 – Education Stabilization Fund
Assistance Listing Number: 84.425U
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Equipment and Real Property Management
Audit Finding: Significant Deficiency
Criteria: 2 CFR 200.313(d) states in part:
"The non-Federal entity must provide for the following:
(2) A physical inventory of the property must be taken and the results reconciled with the property records
at least once every two years.
Condition: An effective internal control system was not in place at the School Corporation in order to
ensure compliance with requirements related to the grant agreement and the Equipment and Real Property
Management compliance.
Cause: The School Corporation's management had not developed a system of internal controls to ensure
compliance with the requirements listed above.
Effect: The failure to establish an effective internal control system placed the School Corporation at risk of
noncompliance with the grant agreement and the compliance requirements.
Questioned Costs: There were no questioned costs identified.
Context: We noted that there was no inventory of the property and equipment owned by the School
Corporation performed during the audit period. We did note that an inventory was conducted a month after
the audit period. Management had scheduled the inventory count to take place during June 2024, the biannual
period under audit; however, it was delayed until July 2024.
Identification as a repeat finding, if applicable: No.
Recommendation: We recommended that the School Corporation perform a physical inventory as least
once every two years and formally document the results of their inventory count.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding
and has prepared a corrective action plan.