Finding 35369 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The organization failed to provide supporting records for bi-annual performance reports, indicating a lack of internal controls over compliance.
  • Impacted Requirements: Compliance with Uniform Guidance 2 CFR 200.303, which mandates maintaining internal controls to ensure adherence to federal laws and reporting requirements.
  • Recommended Follow-Up: Review and strengthen policies for federal grants administration to ensure all compliance requirements are met and records are properly maintained.

Finding Text

2022 ? 004: Reporting Federal Agency: U.S. Department of Education Federal Program Name: Innovative Approaches to Literacy; Full-Service Community Schools; and Promise Neighborhoods Assistance Listing Number: 84.215J Federal Award Identification Number and Year: U215J200111 Award Period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Per Uniform Guidance 2 CFR 200.303, non-federal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition: While performing audit procedures, it was noted that bi-annual performance reports for the six-month period ending March 31, 2022 was submitted June 15, 2022, were not supported by organizations records as the underlying performance reporting files were unable to be provided for testing on accuracy of reporting. Questioned costs: None Context: A control system to prevent and detect errors in the reporting process was not created to ensure all required reporting compliance was fully supported by organizational records. Cause: During the process of obtaining an understanding of internal controls and procedures surrounding competing reporting requirements, we noted that due to significant changes in personnel the supporting Martindale Brightwood Education Zone performance reporting file was not retained to support the bi-annual report. Effect: The organization has not fully followed compliance attributes with the reporting requirements set forth by the Compliance Supplement and grant agreement. Personnel need to reinforce policies to ensure control procedures are in place to ensure accurate and timely reporting is completed and supported by organizational records. Repeat Finding: No. Recommendation: We recommend that the organization review their policies and procedures surrounding federal grants administration and ensure a review process is in place to ensure that all necessary compliance requirements are met and the organization?s records are complete to support all reporting requirements. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2022-004 Innovative Approaches to Literacy; Full-Service Community Schools; and Promise Neighborhoods ? Assistance Listing No. 84.215J Recommendation: We recommend that the organization review their policies and procedures surrounding federal grants administration and ensure a review process is in place to ensure that all necessary compliance requirements are met and the organization?s records are complete to support all reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Grant Manager utilizes fluxx grant management system which documents all submission of grant reports and maintains documentation support. Finance as well has organized a filing system organized by department and then list accounting function as well as report assistance for grants. Name of the contact person responsible for corrective action: Anthony Conley Grant Manager / Compliance Specialist Planned completion date for corrective action plan: 12/31/2023

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 35366 2022-001
    Significant Deficiency Repeat
  • 35367 2022-002
    Significant Deficiency Repeat
  • 35368 2022-003
    Material Weakness Repeat
  • 611808 2022-001
    Significant Deficiency Repeat
  • 611809 2022-002
    Significant Deficiency Repeat
  • 611810 2022-003
    Material Weakness Repeat
  • 611811 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.215 Innovative Approached to Literacy; Full-Service Community Schools; and Promise Neighborhoods $579,035
84.287 Twenty-First Century Community Learning Centers - Cohort 11 $162,680
14.218 Community Development Block Grants/entitlement Grant $133,333
84.287 Twenty-First Century Community Learning Centers - Cohort 9 Year 4 $72,011