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FINDING 2022-004Subject: COVID-19 - Education Stabilization Fund - Special Testsand Provisions - Participation of Private School ChildrenFederal Agency: Department of EducationFederal Program: COVID-19 - Education Stabilization FundAssistance Listings Number: 84.425DFederal Award Number and Year (or Other Identifying Number): S425D200013Pass-Through Entity: Indiana Department of EducationCompliance Requirement: Special Tests and Provisions - Participation of Private School ChildrenAudit Finding: Material WeaknessCondition and ContextAn effective internal control system was not designed nor implemented at the School Corporationin order to ensure compliance with requirements related to the grant agreement and the Special Tests andProvisions - Participation of Private School Children compliance requirement.Although the School Corporation stated the grant coordinator reviewed and approved expendituresfor the nonpublic schools, no auditable evidence of the review and approval was presented for audit.The lack of internal controls was a systemic issue throughout the audit period.INDIANA STATE BOARD OF ACCOUNTS21MONROE COUNTY COMMUNITY SCHOOL CORPORATIONSCHEDULE OF FINDINGS AND QUESTIONED COSTS(Continued)Criteria2 CFR 200.303 states in part:"The non-Federal entity must:(a) Establish and maintain effective internal control over the Federal award that providesreasonable assurance that the non-Federal entity is managing the Federal award incompliance with Federal statutes, regulations, and the terms and conditions of the Federalaward. These internal controls should be in compliance with guidance in 'Standards forInternal Control in the Federal Government' issued by the Comptroller General of theUnited States or the 'Internal Control Integrated Framework', issued by the Committee ofSponsoring Organizations of the Treadway Commission (COSO). . . ."CauseManagement had not developed an effective system of internal controls that would have ensuredcompliance with the grant agreement and the Special Tests and Provisions - Participation of Private SchoolChildren compliance requirement.EffectThe failure to establish an effective system of internal controls could have enabled noncompliancewith the grant agreement and the Special Tests and Provisions - Participation of Private School Childrencompliance requirement.Questioned CostsThere were no questioned costs identified.RecommendationWe recommended that the School Corporation's management establish a system of internalcontrols to ensure compliance with the grant agreement and the Special Tests and Provisions - Participationof Private School Children compliance requirement.Views of Responsible OfficialsFor the views of responsible officials, refer to the Corrective Action Plan that is part of this report.