Finding Text
FINDING 2024-007
Subject: COVID-19 - Education Stabilization Fund - Reporting
Federal Agency: Department of Education
Federal Program: COVID-19 - Education Stabilization Fund
Assistance Listings Numbers: 84.425D, 84.425U
Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013,
S425U210013
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Reporting
Audit Finding: Material Weakness
Condition and Context
The School Corporation had not properly designed or implemented a system of internal controls
that would likely be effective in preventing, or detecting and correcting, noncompliance. The School
Corporation was required to submit annual data reports to the Indiana Department of Education via
JotForm, a form/report builder. Data to be submitted included, but was not limited to, current period
expenditures, prior period expenditures, and expenditures per activity.
During the audit period, the School Corporation submitted one ESSER I report, two ESSER II
reports, and two ESSER III reports, for a total of five reports. The School Corporation did not have a
documented review of any of the annual reports submitted to the Indiana Department of Education.
The lack of internal controls was a systemic issue throughout 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). . . ."
INDIANA STATE BOARD OF ACCOUNTS 29
NEW PRAIRIE UNITED SCHOOL CORPORATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Cause
A proper system of internal controls was designed but not implemented properly by management
of the School Corporation. A review process for the ESF reports was in place, but no documentation of the
review was available to show amounts reported were reviewed prior to submission.
Effect
The failure to implement a system of internal controls places the School Corporation at risk of
inaccurate reporting.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that management of the School Corporation establish a proper system of
internal controls and develop policies and procedures to ensure that all reports are submitted accurately.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.