Finding Text
2022-012: U.S. Department of Education Passed through the State of Nevada Public Charter School Authority Title I Grants to Local Educational Agencies, 84.010 Level of Effort ? Maintenance of Effort Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.010 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: The Maintenance of Effort (MOE) calculation submitted to the grantor did not have evidence of review by an individual independent of the preparation of the calculation. Cause: The School did not have adequate internal controls to ensure review of the maintenance of effort occurred or was documented prior to submitting it to the grantor. Effect: Maintenance of Effort information provided to the grantor may not be accurate. Questioned Costs: None noted Context/Sampling: No sampling was performed; the maintenance of effort calculation was tested in its entirety. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of the maintenance of effort occurs and is documented. Views of Responsible Officials: Management agrees with this finding.