Finding 386863 (2023-006)

Material Weakness
Requirement
ELN
Questioned Costs
-
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The School Corporation lacks a proper system of internal controls, leading to a material weakness in compliance.
  • Impacted Requirements: Key areas affected include eligibility data accuracy, timely reporting of expenditure reports, and assessment system security documentation.
  • Recommended Follow-Up: Management should establish and implement effective internal controls, including segregation of duties and documented oversight processes.

Finding Text

FINDING 2023-006 Subject: Title I Grants to Local Educational Agencies - Internal Controls Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listing Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A190014, S010A200014, S010A210014, S010A220014 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Eligibility, Reporting, Special Tests and Provisions - Assessment System Security Audit Finding: Material Weakness Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. Eligibility Data from the School Corporation's student software system was uploaded to the Indiana Department of Education's (IDOE) Data Exchange System. Enrollment and poverty information for the School Corporation was then abstracted by the IDOE from the Data Exchange System into the Title I application. The School Corporation had not designed or implemented an oversight or review process to ensure that the data was accurately uploaded by the IDOE into the Title I application. Reporting The School Corporation was required to submit final expenditure reports to the IDOE on or before December 31, after the September 30 deadline for encumbering prior school year funds. During the audit period, the School Corporation had final expenditure reports due for the S010A200014 and the S010A210014 grant awards. A single employee prepared and submitted the final reports without a documented review or oversight process in place to prevent, or detect and correct, errors. Special Tests and Provisions - Assessment System Security The School Corporation had a process in place to ensure that the assessment system security policy was reviewed and updated, if applicable, each year per the assessment security handbook. However, there was no documentation of that process to ensure that the policy was being reviewed. The lack of internal controls was systemic 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) . . . ." Cause A proper system of internal controls was not designed by management of the School Corporation which would include segregation of key functions. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation design and implement a proper system of internal controls, including policies and procedures that would provide segregation of duties to ensure appropriate reviews, approvals, and oversight are taking place to ensure compliance. 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 2023-006 Subject: Title I Grants to Local Educational Agencies – Internal Controls Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listing Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A190014, S010A200014, S010A210014, S010A220014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Eligibility, Reporting, Special Tests and Provisions - Assessment System Security Summary of Finding: Material Weakness Contact Person Responsible for Corrective Action: Terri Chance Contact Phone Number and Email Address: 219-924-4250 tchance@griffith.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Griffith Public Schools will be developing, implementing, and documenting, a system of internal controls, including policies and procedures that provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place. Anticipated Completion Date: June 30, 2025

Categories

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

Other Findings in this Audit

  • 386846 2023-003
    Material Weakness Repeat
  • 386847 2023-003
    Material Weakness Repeat
  • 386848 2023-003
    Material Weakness Repeat
  • 386849 2023-003
    Material Weakness Repeat
  • 386850 2023-003
    Material Weakness Repeat
  • 386851 2023-003
    Material Weakness Repeat
  • 386852 2023-003
    Material Weakness Repeat
  • 386853 2023-004
    Material Weakness Repeat
  • 386854 2023-004
    Material Weakness Repeat
  • 386855 2023-004
    Material Weakness Repeat
  • 386856 2023-005
    Material Weakness Repeat
  • 386857 2023-005
    Material Weakness Repeat
  • 386858 2023-005
    Material Weakness Repeat
  • 386859 2023-005
    Material Weakness Repeat
  • 386860 2023-005
    Material Weakness Repeat
  • 386861 2023-005
    Material Weakness Repeat
  • 386862 2023-005
    Material Weakness Repeat
  • 386864 2023-006
    Material Weakness
  • 386865 2023-007
    Material Weakness
  • 386866 2023-007
    Material Weakness
  • 386867 2023-008
    Material Weakness
  • 386868 2023-008
    Material Weakness
  • 386869 2023-009
    Material Weakness
  • 386870 2023-009
    Material Weakness
  • 386871 2023-009
    Material Weakness
  • 386872 2023-010
    Material Weakness
  • 386873 2023-010
    Material Weakness
  • 963288 2023-003
    Material Weakness Repeat
  • 963289 2023-003
    Material Weakness Repeat
  • 963290 2023-003
    Material Weakness Repeat
  • 963291 2023-003
    Material Weakness Repeat
  • 963292 2023-003
    Material Weakness Repeat
  • 963293 2023-003
    Material Weakness Repeat
  • 963294 2023-003
    Material Weakness Repeat
  • 963295 2023-004
    Material Weakness Repeat
  • 963296 2023-004
    Material Weakness Repeat
  • 963297 2023-004
    Material Weakness Repeat
  • 963298 2023-005
    Material Weakness Repeat
  • 963299 2023-005
    Material Weakness Repeat
  • 963300 2023-005
    Material Weakness Repeat
  • 963301 2023-005
    Material Weakness Repeat
  • 963302 2023-005
    Material Weakness Repeat
  • 963303 2023-005
    Material Weakness Repeat
  • 963304 2023-005
    Material Weakness Repeat
  • 963305 2023-006
    Material Weakness
  • 963306 2023-006
    Material Weakness
  • 963307 2023-007
    Material Weakness
  • 963308 2023-007
    Material Weakness
  • 963309 2023-008
    Material Weakness
  • 963310 2023-008
    Material Weakness
  • 963311 2023-009
    Material Weakness
  • 963312 2023-009
    Material Weakness
  • 963313 2023-009
    Material Weakness
  • 963314 2023-010
    Material Weakness
  • 963315 2023-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund 2023 $1.41M
10.555 National School Lunch Program 2023 $1.06M
84.010 Title I Grants to Local Educational Agencies 2023 $615,259
84.027 Special Education_grants to States 2022 $526,339
10.559 Summer Food Service Program for Children 2022 $446,118
84.010 Title I Grants to Local Educational Agencies 2022 $294,989
10.553 School Breakfast Program 2023 $187,522
10.553 School Breakfast Program 2022 $164,094
84.425 Education Stabilization Fund 2022 $150,429
93.778 Medical Assistance Program 2023 $83,079
84.367 Improving Teacher Quality State Grants 2023 $80,515
10.555 National School Lunch Program 2022 $65,379
93.778 Medical Assistance Program 2022 $43,079
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) 2023 $40,426
10.559 Summer Food Service Program for Children 2023 $40,338
84.424 Student Support and Academic Enrichment Program 2023 $22,199
10.649 Pandemic Ebt Administrative Costs 2022 $3,063
10.649 Pandemic Ebt Administrative Costs 2023 $628