Finding 1102868 (2024-001)

Information on the federal program: Subject: COVID-19 - Education Stabilization Fund - Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S245D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Criteria: 2 CFR section 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards 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). . . ." Condition: Errors were noted in the expenditure amounts reported on the Annual Data Report for the period of July 1, 2022 through June 30, 2023 for the ESSER I, I, and III grant awards when compared to underlying transaction detail of the School Corporation for each award. Cause: The School Corporation's management had not developed a system of internal controls to ensure the quantitative data reported in the Annual Data Report agreed to underlying records. Effect: The annual data reported to the Indiana Department of Education covering the period of July 1, 2022 through June 30, 2023 contained errors. Questioned Costs: There were no questioned costs identified. Context: During the testing of the annual data reports submitted for the reporting period of July 1, 2022 through June 30, 2023, the following variances were noted:  The ESSER II annual data report noted $0 disbursements for the reporting period noted above compared to the underlying disbursement detail of $139,139 resulting in understatement of the annual data report by $139,139.  The ESSER III annual data report noted $783,822 disbursements for the reporting period noted above compared to the underlying disbursement detail of $214,015 resulting an overstatement of the annual data report by $405,807. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation's management implement an internal control over the annual data reporting process to ensure a secondary, documented review of the data compiled to be submitted in the Annual Data Reports to the Indiana Department of Education is performed prior to submission of the reports. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.