Finding 391129 (2023-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2024-04-01

Audit: 301715

Organization: Sioux Falls School District 49-5 (SD)

Auditor: Eide Bailly LLP

AI Summary

Core Issue: The School District failed to upload three out of four required quarterly HEERF reports on time, violating federal reporting requirements.
Impacted Requirements: Compliance with CRRSSA and CARES Act reporting criteria, which mandate timely submission of reports within 10 days after each quarter ends.
Recommended Follow-Up: Implement a tracking schedule to monitor reporting deadlines and establish a separate review process for reports before submission.

Finding Text

2023-002 Department of Education Education Stabilization Fund: Higher Education Emergency Relief Find (HEERF) Federal Financial Assistance Listing 84.425F Institutional Portion Award Number P425F202657, Award Years 2020 and 2021 Reporting Material Weakness in Internal Controls over Compliance and Non-Compliance Criteria: CRRSSA section 314 (e) and CARES Act 18004 (e) sets forth the criteria for reporting requirements. Condition: Three of the four required quarterly reports were not uploaded to the School District’s website timely. The quarterly reports were required to be uploaded to the website 10 days after quarter end and all quarterly reports were posted on June 28, 2023. Furthermore, there was no review of quarterly or annual HEERF reports prior to their submission. Cause: Inadequate controls implemented to ensure compliance with HEERF reporting requirements. Effect: The errors in reporting resulted in reporting dates outside of the required reporting timeframe. Questioned Costs: None. Context/Sampling: All quarterly reports that were required to be completed were tested. Repeat Finding from Prior Year(s): Yes, Finding 2022-002. Recommendation: We recommend that a tracking schedule is made by Southeast Technical College which is monitored to ensure the requirements, including deadlines, for reporting are met in the timeframe allowed under the grant agreements, and that there is a separate documented reviewer of the reports prior to their submission. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Identifying Number: 2023-002: U.S. Department of Education: Education Stabilization Fund: Student Aid Portion – 84.425E; Institutional Portion – 84.425F Finding: Three of the four required quarterly reports were not posted to the District’s website in a timely manner. In addition, there was no review of quarterly or annual HEERF reports prior to their submission. Corrective Action Taken or Planned: STC will implement a master calendar that will establish and publish deadlines for reporting requirements prior to their respective submission dates. Additionally, STC will explore training staff and delegating responsibility for report preparation to other Finance and Operation positions to allow the Vice President – Finance and Operations to provide oversight and guidance in report preparation and to review reports prior to submission. Contact person: Rich Kluin, Vice President – Finance and Operations, Southeast Technical College Status of finding – The above corrective actions will be implemented beginning July 1, 2024.

Other Findings in this Audit

391126 2023-003

Significant Deficiency
391127 2023-004

Significant Deficiency
391128 2023-005

Material Weakness
967568 2023-003

Significant Deficiency
967569 2023-004

Significant Deficiency
967570 2023-005

Material Weakness
967571 2023-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Student Loans	$7.72M
10.555	National School Lunch Program	$6.50M
84.010	Title I Grants to Local Educational Agencies	$6.28M
93.600	Head Start	$3.51M
84.063	Federal Pell Grant Program	$3.06M
10.553	School Breakfast Program	$1.54M
84.367	Improving Teacher Quality State Grants	$1.16M
84.048	Career and Technical Education -- Basic Grants to States	$1.08M
10.582	Fresh Fruit and Vegetable Program	$548,841
84.011	Migrant Education_state Grant Program	$535,990
84.424	Student Support and Academic Enrichment Program	$483,876
84.060	Indian Education_grants to Local Educational Agencies	$348,924
84.365	English Language Acquisition State Grants	$335,584
84.425	Education Stabilization Fund	$263,217
84.196	Education for Homeless Children and Youth	$184,769
93.576	Refugee and Entrant Assistance_discretionary Grants	$153,934
84.287	Twenty-First Century Community Learning Centers	$137,525
10.559	Summer Food Service Program for Children	$131,057
93.243	Substance Abuse and Mental Health Services_projects of Regional and National Significance	$116,133
93.391	Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises	$114,637
84.002	Adult Education - Basic Grants to States	$110,548
84.007	Federal Supplemental Educational Opportunity Grants	$92,010
84.126	Rehabilitation Services_vocational Rehabilitation Grants to States	$57,220
93.575	Child Care and Development Block Grant	$51,913
84.173	Special Education_preschool Grants	$36,318
84.033	Federal Work-Study Program	$30,646
10.558	Child and Adult Care Food Program	$14,225
12.404	National Guard Challenge Program	$13,246
15.130	Indian Education_assistance to Schools	$12,197
84.027	Special Education_grants to States	$9,457
93.913	Grants to States for Operation of Offices of Rural Health	$6,000
45.025	Promotion of the Arts_partnership Agreements	$3,851
84.181	Special Education-Grants for Infants and Families	$3,361
64.028	Post-9/11 Veterans Educational Assistance	$2,704