Finding Text
Finding 2025-003 Award Year: 2024-2025 Federal program: U.S. Department of Education – 84.010 Title I Grants to Local Educational Agencies (Title 1, Part A of the ESEA) Pass-through entity: Oregon Department of Education Criteria: Per 2 CFR 200.303, a non-Federal entity must “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.” Condition: The District could not provide documentation of review and approval of the indirect costs charged to the federal program. The deficiency in controls over compliance related to indirect costs is considered a significant deficiency. Cause: The cause appears to be related to staff turnover. Effect or potential effect: There is potential for indirect costs excess of the allowed indirect cost rate to be charged to the federal program. Questioned Costs: No questioned costs identified. Context: The District appears to have not retained documentation of review and approval of the indirect costs charged to the federal program. Recommendation: The District should ensure controls related to compliance with indirect cost requirements are implemented. Views of responsible officials: The District understands and concurs with this finding.