Finding Text
Finding 2023-004: Significant Deficiency - Reporting
Program: Indian School Equalization; Indian Schools Student Transportation; Administrative Cost Grants for Indian Schools; Title I Grants to Local Educational Agencies; COVID-19 – Education Stabilization Fund
Assistance Listing Number: 15.042; 15.044; 15.046; 84.010; 84.425
Federal Agency: U.S. Department of the Interior; U.S. Department of Education
Federal Award Identification Number: N/A
Federal Award Year: June 30, 2019; June 30, 2023
Repeat of Prior Year Finding 2022-003
Criteria: The Uniform Guidance requires that an entity establish a system of properly-functioning internal controls and that all reporting be submitted accurately and within the time frames prescribed by the grantors.
Condition: The annual SF-425 was not reviewed by someone other than the preparer of the report. Certain amounts included on the annual SF-425, Federal Financial Report, for the year ended June 30, 2023, were not accurate. In addition, the SF-425 report was not submitted to the grantor agency by the due date of September 28, 2023.
Questioned Costs: None noted.
Context: There was one annual SF-425 report required for the current year, which contained inaccurate data and was not submitted in a timely manner. The sample was not a statistically valid sample.
Effect: Users of the annual report were not provided the report in a timely manner and may contain inaccurate information from the report.
Cause: The Club has not implemented an effective system of internal controls over reporting to ensure that the reports are accurate and submitted timely.
Recommendation: We recommend that the Club implement proper review of the reporting process. Someone other than the preparer of the report should provide adequate review prior to finalizing and submitting the report. This review should include verification that amounts included on the report agree to the underlying general ledger detail as of the report date and verification that the report is submitted by the due date. These procedures should be documented and retained.
Management’s Response: The Club agrees with this finding as the annual SF-425 report was not submitted by the appropriate deadline. The Club will also establish a review process in their policy and procedures to ensure that someone other than the person preparing the report reviews the SF-425 before submitting to ensure accurate and timely reporting. The Club will comply with Uniform Guidance requirements of SF-425 by submitting an annual report to the grantors by its due date.