Finding 1205242 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-31

AI Summary

  • Core Issue: The School Corporation failed to provide necessary documentation for funds spent on private school children, indicating a lack of internal controls.
  • Impacted Requirements: Noncompliance with 2 CFR 200.303 and 2 CFR 200.302(b) regarding effective internal controls and accurate financial reporting.
  • Recommended Follow-Up: Management should implement internal controls to ensure compliance with the Special Tests and Provisions for private school participation.

Finding Text

FINDING 2025-004 Subject: Title I Grants to Local Educational Agencies - Special Tests and Provisions - Participation of Private School Children Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listings Number: 84.010 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 - Participation of Private School Children Audit Findings: Material Weakness, Other Matters Condition and Context The School Corporation did not provide supporting documentation for the amounts disbursed for Participation of Private School Children. No time sheets or logs were provided to support the hours paid to employees for working with the private school children. The lack of effective internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following . . . INDIANA STATE BOARD OF ACCOUNTS 22 METROPOLITAN SCHOOL DISTRICT OF SOUTHWEST ALLEN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. . . ." Cause The School Corporation had not developed a system of internal controls that would have ensured that records were maintained and made available for audit related to the Special Tests and Provisions - Participation of Private School Children compliance requirement. Effect The lack of appropriate documentation prevented the determination of the School Corporation's compliance with the Special Tests and Provisions - Participation of Private School Children compliance requirement. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the Special Test and Provisions - Participation of Private School Children compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.

Corrective Action Plan

Finding 2025-004 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests and Provisions – Participation of Private School Children Summary of Finding: The School Corporation did not provide supporting documentation for the amounts disbursed for Participation of Private School Children. No time sheets or logs were provided to support the hours paid to employees for working with the Private School Children. Contact Person Responsible for Corrective Action: Randi Libby, Chief Operating Officer Contact Phone Number and Email Address: (260)431-2030, rlibby@sacs.k12.in.us Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The School Corporation will implement procedures to ensure consistent documentation supporting Title I services provided to non-public school students. All Title I staff providing services to non-public schools will be required to submit consistent, detailed timesheets documenting hours and/or days worked by non-public school, activity, and grant year. Timesheets will be completed, reviewed, and approved prior to payroll processing. The Payroll Manager will not process payroll for Title I non-public services unless the required timesheets are submitted and approved. Approved timesheets will be retained in the payroll files and organized by payroll dates, and will be made available for audit review. Anticipated Completion Date: July 1, 2026 _________________________ _Randi Libby (Signature) _______Chief Operating Officer __ (Title) __________January 7, 2026__________ (Date)

Categories

Special Tests & Provisions Subrecipient Monitoring Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205235 2025-002
    Material Weakness Repeat
  • 1205236 2025-002
    Material Weakness Repeat
  • 1205237 2025-002
    Material Weakness Repeat
  • 1205238 2025-002
    Material Weakness Repeat
  • 1205239 2025-003
    Material Weakness Repeat
  • 1205240 2025-003
    Material Weakness Repeat
  • 1205241 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND 2024 $2.02M
84.027 SPECIAL EDUCATION GRANTS TO STATES 2025 $1.93M
10.555 NATIONAL SCHOOL LUNCH PROGRAM 2024 $1.70M
10.555 NATIONAL SCHOOL LUNCH PROGRAM 2025 $1.44M
84.425 EDUCATION STABILIZATION FUND 2025 $1.37M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES 2024 $621,711
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES 2025 $438,010
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) 2025 $247,429
10.553 SCHOOL BREAKFAST PROGRAM 2025 $209,652
10.553 SCHOOL BREAKFAST PROGRAM 2024 $209,636
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) 2024 $141,339
84.027 SPECIAL EDUCATION GRANTS TO STATES 2024 $95,831
93.778 MEDICAL ASSISTANCE PROGRAM 2025 $87,891
93.778 MEDICAL ASSISTANCE PROGRAM 2024 $76,509
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS 2025 $60,125
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS 2025 $43,512
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES 2024 $42,059
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES 2025 $30,532
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM 2024 $20,200
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM 2025 $17,201
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH 2025 $7,501
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS 2024 $3,002
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH 2024 $1,864