Finding Text
Federal agency: U.S. Department of Education Federal program title: Student Support and Academic Enrichment Program Assistance Listing Number: 84.424A Federal Award Identification Number and Year: S424A230032: 7/1/2023-9/30/2024 S424F220032: 9/15/2022 - 9/30/2025 Pass-Through Agency: N/A Pass-Through Number(s): N/A Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Per §200.302 Financial Management, "Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state's own funds. In addition, the state's and the other non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award" Condition: 1 of the 7 samples selected had expenditures related to 424F drawn from the 424A, creating an overdraw in the 424A grant of $544,140.02 1 of 7 samples selected had $67,992.44 of expenditures related to 84.424A drawn from 84.365 rather than 84.424A Questioned costs: None. Context: This was identified during Cash Management Testing. The samples described above were statistically valid samples. Cause: The Department has not maintained internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effect: The Department is not in compliance with federal regulations. Repeat Finding: No Recommendation: We recommend the Department implement effective processes and procedures to ensure expenditures are reimbursed from the correct grant Views of responsible officials: Open – Views of responsible officials and management’s planned corrective actions, timeline and designation of what employee position are responsible for meeting deadlines in the timeline.