Finding Text
Department of Education and Passed through State of Iowa Department of Education
Federal Financial Assistance Listing #84.287, C14-SHIP, C15-SHIP, C16-SHIP, C17-SHIP, 7/1/2022 – 6/30/2023
Twenty-First Century Community Learning Centers Program
Cash Management
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. In addition, 2 CFR 200.302(b)(6) establishes that the financial management system of the entity must provide written procedures to implement the requirements of 2 CFR 200.305 Payment.
Condition: No support could be provided for the third quarter draw requests to substantiate a secondary level of review was completed prior to submission of the draws.
Cause: Documentation to support the review of draw requests prior to submission was not retained during the transition period in the Finance Director role.
Effect: Without retaining supporting documentation to substantiate the review of draw requests, demonstrating that the program complies with laws, regulations, and other compliance requirements is difficult.
Questioned Costs: None reported.
Context: A non-statistical sample of 2 of 4 quarters were selected for testing. All draws submitted within the selected quarters were tested.
Repeat Finding from Prior Year: No
Recommendation: We acknowledge the review process lapsed during a time of employee transition, however, we recommend that management retain documentation to support the review of grant draws is performed for all grant draw requests.
Views of Responsible Officials: Management is in agreement.