Finding 1156984 (2024-002)

2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: District of Columbia Office of the State Superintendent of Education Award Period: May 25, 2022 - September 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: According to the funding agency's guidelines, all financial and performance reports must be reviewed and approved by the designated authority before submission. This ensures accuracy, compliance, and accountability. Condition: During our testing, we noted that financial and performance reports submitted to the funding agency lacked the required approval prior to submission to the funding agency. Specifically, there was no evidence of review or authorization by the designated authority. Questioned costs: None Context: During our testing, we noted there was a lack of approval prior to submission to the funding agency for five financial and three performance reports tested during the audit. Cause: The lack of approval appears to be due to inadequate internal controls and oversight within the reporting process. There may be a lack of awareness or understanding of the approval requirements among staff responsible for report preparation. Effect: Without proper documentation of approval, there is a risk of non-compliance with the funding agency's guidelines. This could lead to potential issues such as delays in funding, questioning of the report's validity, and a lack of accountability for the information provided in the reports. SPRINGBOARD COLLABORATIVE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 2024 (29) Repeat Finding: N/A: Not a repeat finding Recommendation: We recommend that the organization implement a formal review and approval process for all financial and performance reports submitted to the funding agency. This process should include clear guidelines and training for staff to ensure that all reports are reviewed and approved by the designated authority before submission. Additionally, regular audits should be conducted to verify compliance with the documentation requirements. Views of responsible officials: Please refer to Springboard Collaborative’s Corrective Action Plan.