Finding Text
Information on the federal program: Subject: Title I Grants to Local Educational Agencies - Internal Controls Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listing Number: 84.010A Federal Award Numbers and Years (or Other Identifying Numbers): S010A220014, S010A230014, S010A240014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Special Test and Provisions – Annual Report Card, High School Graduation Rate Audit Finding: Material Weakness Criteria: 20 USC 7801(23)(B) states: "The non-Federal entity must: "To remove a student from a cohort, a school or local educational agency shall require documentation, or obtain documentation from the State educational agency, to confirm that the student has transferred out, emigrated to another country, or transferred to a prison or juvenile facility, or is deceased." Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Special Test and Provisions compliance requirement. Cause: The School Corporation's management had not developed a system of internal controls that would have ensured compliance with the grant agreement and the Special Test and Provisions compliance requirement. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: In a sample of 60 students who were removed from the cohort, we noted 10 student for which the School Corporation did not maintain any mobility documentation to support their removal from the cohort. Additionally, we noted 8 students for which the School Corporation did not maintain the appropriate mobility documentation to support their removal from the cohort. Per Indiana Department of Education (IDOE) guidance, students withdrawn by parents for nonpublic education must be documented using the withdrawal code “Withdrawal to non-accredited nonpublic school.” The correct form was not maintained for these students. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to ensure the school obtains all required documentation when removing a student from a cohort. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.