Finding 3732 (2023-001)

Finding 2023-001 Assistance Listing # 84.425U, TCLAS ESSER III, TCLAS High-Quality Afterschool, ARP ESSER III, Department of Education passed through Texas Education Agency Compliance Requirement: Reporting Significant Deficiency in Controls over Compliance Criteria or Specific Requirement The Charter Holder is responsible for establishing and maintaining effective internal control over the federal award in accordance with 2 CFR section 200.303(a). Condition and Context During testing for reporting, we noted that Charter Holder did not establish and maintain effective internal controls over the preparation and submission of the required annual report. Cause Due to the complexity and deadline to submit the annual report, the Charter Holder had only the CFO prepare and submit the report. Effect or Potential Effect Without a level of internal review of the report before submittal, the Charter Holder may submit a report that contains errors. Questioned Costs None. Recommendation The Charter Holder should establish and maintain internal controls over the preparation and submission of the required annual report. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.