Finding Text
Finding Number: 2023-002
Prior Year Finding: No
Federal Agency: U.S. Department of Education
Federal Program: COVID-19 – Education Stabilization Fund
Assistance Listing: 84.425 C,D,U,W
Pass-Through Entity: Maryland State Department of Education
Pass-Through Award Number and Period: 201873-01 (3/13/20 – 9/30/22) 221869-01 (6/1/22 – 9/30/24)
201787-01 (3/13/20 – 9/30/22) 211956-01 (3/24/21 – 9/30/23)
202233-01 (3/13/20 – 9/30/22) 221568-01 (7/1/21 – 9/30/22)
221422-01 (7/1/21 – 9/30/23) 221894-01 (7/1/21 – 9/30/23)
Compliance Requirement: Allowable Costs/Cost Principles
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: 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 comply with the 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).
Condition/Context
For 2 out of 60 samples, the Board did not retain documentation supporting proper approval of the costs charged to the grant.
Questioned Costs
None noted.
Cause
The Board did not establish and maintain effective internal control over the Federal award in accordance with the COSO framework noted above for 2 out of 60 samples.
Effect
Failure to perform timely approvals of grant expenditures may result in the Board charging expenditures to the grant that are unallowable.
Recommendation
We recommend that the Board enhance its procedures and internal controls to ensure that it retains documentation of expenditure approvals and that this documentation is available for audit purposes.
Views of Responsible Officials
Management agrees with the finding.