Finding Text
2022 ? 003: Internal Control Over Compliance Related to ReportingFederal Agency: U.S. Department of EducationFederal Program Name: COVID-19: Elementary and Secondary School Emergency Relief FundAssistance Listing Number: 84.425DFederal Award Identification Number and Year: S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))- FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S425D200013 (CARES); S425D210013 (ESSER II (CRRSA))Award Period: FY2021, FY2022Type of Finding:? Material Weakness in Internal Control over ComplianceCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards 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)??Condition: During our testing of the reporting process, we noted that the annual reports submitted did not have documentation retained of review and approval prior to submission.Questioned costs: NoneContext: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed.Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above.Effect: The failure to design and implement an effective internal control system enabled material noncompliance to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding