Finding Text
FINDING 2024-001
Subject: COVID-19 - Education Stabilization Fund - Reporting
Federal Agency: Department of Education
Federal Program: COVID-19 - Education Stabilization Fund
Assistance Listings Number: 84.425
Federal Award Numbers and Years (or Other Identifying Numbers): S424U200013, S425D200013,
S425U210013, S425W210015
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Reporting
Audit Finding: Material Weakness
Repeat Finding
This is a repeat finding from the immediately prior audit report. The prior audit finding number was
2022-003.
Condition and Context
An effective internal control system was not designed, nor implemented, at the School Corporation
to ensure compliance with requirements related to the grant agreement and the Reporting compliance
requirement.
The School Corporation had not designed, nor implemented, a system of internal controls to ensure
the annual Elementary and Secondary School Emergency Relief (ESSER) annual Data Collection reports
(Reports) were complete and accurately submitted. The School Corporation Reports were reviewed by the
Assistant Deputy Treasurer and submitted by the Chief Financial Officer; however, there was no
documentation provided to verify that the oversight or review process to prevent, or detect and correct,
errors was performed during the audit period.
Criteria
2 CFR 200.303 states in part:
"The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award 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. These internal controls should be in compliance with guidance in 'Standards for
Internal Control in the Federal Government' issued by the Comptroller General of the
United States or the 'Internal Control Integrated Framework', issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). . . ."
Cause
There was no documentation that a system of internal controls had been designed and
implemented by management of the School Corporation to ensure compliance with the federal award and
the Reporting compliance requirement.
INDIANA STATE BOARD OF ACCOUNTS
16
FRANKLIN COMMUNITY SCHOOL CORPORATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Effect
Without an effective system of internal controls noncompliance with the federal award and the
Reporting compliance requirement could have occurred. Users of the Report rely upon its accuracy to
make appropriate decisions.
Noncompliance with the conditions of the federal award could result in the loss of federal funding
to the School Corporation.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that the School Corporation's management establish a system of internal
controls related to the federal award and the Reporting compliance requirement which includes documentation
of the operation of the internal controls.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.