Finding Text
Finding 2022–003: Reporting
Federal Department: U.S. Department of Education
Pass-through Agencies: State of South Carolina Department of Education, Minnesota Department of Education, and DC Office of the State Superintendent of Education
Federal Program Name: Twenty-First Century Community Learning Centers
Assistance Listing Number: 84.287
Type of Finding:
Material Weakness in Internal Control over Compliance
Material Noncompliance (Modified Opinion)
Criteria
The subgrant award agreement between State of South Carolina Department of Education (SCDE) and CDF – Scope of Work and Special Conditions states that “programs are required to submit quarterly (at a minimum) expenditure reports via the SCDE’s grants accounting processing system (GAPS)… In accordance with generally accepted accounting principles (GAAP), all expenditure reports for funds spent must be submitted to the SCDE by the specified deadline”.
The subgrant award agreement between Minnesota Department of Education (MDE) and CDF states that “Interim Progress Report, summarizing grant activities and outcomes, including any data collected/requested related to the grant program, are due to MDE by the specified date” and that “Financial Reporting Forms (FRF) summarizing grant expenditures to date, shall be submitted in the form and manner prescribed by MDE”.
Condition/Context
During the current audit period, CDF is not in accordance with federal regulations regarding the reporting requirements.
During our review, we noted that CDF was required to submit both quarterly financial and progress reports. We selected 36 reports (three quarterly financial and progress reports across all six grants) for testing and we were not provided with copies of the actual reports, including the related supporting documentation. We also were not provided with any evidence of submissions of such reports.
Cause
Based on our discussions with management, this finding occurred due to staff turnover. This resulted in inconsistent and incorrect implementation of policies and procedures to ensure timely, complete, and accurate financial reporting with adequate supporting documentation.
Effect
Failure to submit reports in a timely manner impairs the grantor agency’s ability to monitor program activities and could result in the loss of grant funding. Also, the failure to maintain adequate supporting documentation could result in inaccurate reporting and is a violation of grantor(s) reporting requirements.
Questioned Costs
Not applicable.
Identification of Repeat Findings
Not a repeat finding.
Views of Responsible Officials and Corrective Action Plan
CDF agrees with the finding and recommendation. See CDF’s Corrective Action Plan on pages 17-18.