Finding 46493 (2022-002)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The internal controls for tracking time and effort related to federal grants were inadequate, leading to unsupported salary and wage charges.
  • Impacted Requirements: Compliance with 2 CFR 200.430 was not met, as documentation for expenditures was missing or insufficient.
  • Recommended Follow-Up: Implement consistent controls and provide training to ensure proper documentation and compliance moving forward.

Finding Text

2022 ? 002 ? Elementary and Secondary School Emergency Relief Fund Activities Allowed or Unallowed & Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: S425C200018, S425D200013, S425U210013 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria: Per 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, (iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity (See paragraph (h)(1)(ii) above for treatment of incidental work for IHEs.); and vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: During our testing we noted the internal control process in place during the majority of the period was insufficient to ensure proper time and effort reviews were performed and documented, and to ensure that all expenditures were supported as allowable activities and allowable costs for the program in the audit period. Questioned costs: Known - $9,653.17, Likely - $299,904.00. Known and questioned costs exceed program materiality. Context: In a statistically valid sample, 14 of 14 selections were not supported by appropriate documentation to support the amounts charged to the grants. 14 of 14 selections did not have adequate time and effort documentation. Cause: Eastbrook Community School Corporation did not have a process implemented to track time and effort for the grant, as they believed that they were not required to. Effect: Activities or costs could be charged to a federal grant which do not meet the allowability standards, leading to noncompliance. Repeat Finding: No. Recommendation: We recommend the management ensure controls are consistently in place. Training over the organization's controls may be beneficial. View of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

FINDING 2022-002 ? ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS/COST PRINCIPLES Contact Person Responsible for Corrective Action: Lisa Baker, Business Manager Contact Person's Phone Number: 765-664-0624 Views of Responsible Official: There is no disagreement with the audit finding. Description of Correction Action Plan: The following phrase will be added to payroll time cards and bus trip sheets when ESSER funds will be used to pay wages and payroll-related expenses: "I hereby certify that this is a true and accurate representation of all hours worked on behalf of ESSER-funded Summer Academy (or ESSER-funded After-School Tutoring) and that duties performed were only for Summer Academy (or After-School Tutoring)." Contract addendums will include the phrase "ESSER-funded Summer Academy" as well. Anticipated Completion Date: March 24, 2023

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 46494 2022-003
    Material Weakness
  • 46495 2022-004
    Material Weakness
  • 46496 2022-002
    Material Weakness
  • 46497 2022-003
    Material Weakness
  • 46498 2022-004
    Material Weakness
  • 46499 2022-002
    Material Weakness
  • 46500 2022-003
    Material Weakness
  • 46501 2022-004
    Material Weakness
  • 46502 2022-002
    Material Weakness
  • 46503 2022-003
    Material Weakness
  • 46504 2022-004
    Material Weakness
  • 46505 2022-002
    Material Weakness
  • 46506 2022-003
    Material Weakness
  • 47078 2022-004
    Material Weakness
  • 47079 2022-002
    Material Weakness
  • 47146 2022-003
    Material Weakness
  • 47147 2022-004
    Material Weakness
  • 47148 2022-002
    Material Weakness
  • 47149 2022-003
    Material Weakness
  • 47150 2022-004
    Material Weakness
  • 622935 2022-002
    Material Weakness
  • 622936 2022-003
    Material Weakness
  • 622937 2022-004
    Material Weakness
  • 622938 2022-002
    Material Weakness
  • 622939 2022-003
    Material Weakness
  • 622940 2022-004
    Material Weakness
  • 622941 2022-002
    Material Weakness
  • 622942 2022-003
    Material Weakness
  • 622943 2022-004
    Material Weakness
  • 622944 2022-002
    Material Weakness
  • 622945 2022-003
    Material Weakness
  • 622946 2022-004
    Material Weakness
  • 622947 2022-002
    Material Weakness
  • 622948 2022-003
    Material Weakness
  • 623520 2022-004
    Material Weakness
  • 623521 2022-002
    Material Weakness
  • 623588 2022-003
    Material Weakness
  • 623589 2022-004
    Material Weakness
  • 623590 2022-002
    Material Weakness
  • 623591 2022-003
    Material Weakness
  • 623592 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund Fy21-Fy22 $1.27M
10.559 Summer Food Service Program for Children Fy20-Fy21 $837,916
10.555 National School Lunch Program Fy21-Fy22 $810,266
84.027 Special Education Grant to States Fy20-Fy21 $301,315
10.553 School Breakfast Program Fy21-Fy22 $234,682
84.010 Title I Grants to Local Educational Agencies Fy20-Fy21 $136,786
84.425 Covid-19 Governors Emergency Education Relief Fund Fy20-Fy21 $121,483
84.425 Covid-19 Education Stabilization Fund Fy20-Fy21 $110,674
84.010 Title I Grants to Local Educational Agencies Fy21-Fy22 $98,785
10.555 Commoditites Fy21-Fy22 $83,696
10.555 National School Lunch Program Fy20-Fy21 $77,492
93.778 Medicaid Reimbursement Fy20-Fy21 $74,770
93.778 Medicaid Reimbursement Fy21-Fy22 $73,296
10.555 Commoditites Fy20-Fy21 $68,770
10.579 National School Lunch Program Equipment Grant $40,000
84.425 Covid-19 Governors Emergency Education Relief Fund Fy21-Fy22 $33,944
10.553 School Breakfast Program Fy20-Fy21 $16,879
84.367 Title II A Improving Teacher Quality State Grants Fy21-Fy22 $12,802
10.559 Summer Food Service Program for Children Fy21-Fy22 $12,599
84.173 Special Education Grant to States Fy21-Fy22 $11,996
84.173 Special Education Grant to States Fy20-Fy21 $11,761
97.036 Covid 19 Fema Fund Fy21-Fy22 $9,775
84.367 Title II A Improving Teacher Quality State Grants Fy20-Fy21 $8,925
84.424 Title IV A Student Support & Academic Enrichment Grant Fy21-Fy22 $7,636
84.173 Covid-19 Section 619 Fy21-Fy22 $6,538
84.027 Special Education Grant to States Fy21-Fy22 $4,255
84.424 Title IV A Student Support & Academic Enrichment Grant Fy20-Fy21 $1,885
10.649 Pandemic Ebt Administrative Costs $614
97.036 Covid 19 Fema Fund Fy20-Fy21 $0