Finding Text
2022-015: U.S. Department of Education Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 Cash Management Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.287 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Requests for reimbursement did not have evidence of review and approval by an individual independent of the preparation process. Cause: The School did not have adequate internal controls to ensure review of requests for reimbursement occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: A non-statistical sample of two out of a population of four requests for reimbursement was selected for testing. There was no evidence of review on either of the two requests tested. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of requests for reimbursement occur and is documented. Views of Responsible Officials: Management agrees with this finding.