Finding 1149418 (2024-002)

Federal Agency: U.S. Department of Education Federal Program Name: Rehab Services Demonstration & Training Program Assistance Listing Number: 84.235 Federal Award Identification Number and Year: H235F200005-2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 1/1/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure reimbursement requests are formally reviewed by someone who did not prepare the request to verify the correct information and data is submitted. Condition: Entity does not perform formal documented reviews and approvals over indirect cost calculations and reimbursement requests prior to submission to granting agency. Questioned Costs: None Context: During our testing, we identified instances where there was no documented review and approvals over indirect cost calculations and reimbursement requests prior to submission to granting agency. Cause: The entity does not have a formal review or approval process in place. Effect: The entity is not in compliance with Federal Government requirements. Repeat Finding: No Recommendation: We recommend the entity implement procedures and a control to document review and approvals over indirect costs and cash management. Views of Responsible Officials: Management agrees with the finding and has developed a plan to correct the finding.