Finding Text
Federal Agency: U.S. Department of Education
Federal Programs: Education Stabilization Fund
Assistance Listing Number: 84.425D, 84.425U, 84.425W
Federal Award Identification Number and Year: S425D210046, 2021
S425U210046, 2021
S425W210041-21A, 2021
Pass-Through Agency: Rhode Island Department of Elementary and Secondary Education
Pass-Through Number: 4672-60602-101, 4872-505020-201
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Reporting
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: Per the Rhode Island Department of Elementary and Secondary Education Grant Award Notification, specifically related to ESSER Fund II, Special Grant Award Conditions, "Interim financial status reports are due quarterly for the periods ending 9/30/2021 through 9/30/2023. Final financial status reports are due 15 days after the liquidation of all obligations, but no later than 11/15/2023. Per the Rhode Island Department of Elementary and Secondary Education Grant Award Notification, specifically related to ESSER Fund III, Special Grant Award Conditions, "Interim financial status reports are due quarterly for the periods ending 3/31/2022 through 9/30/2024. Final financial status reports are due 15 days after the liquidation of all obligations, but no later than 11/15/2024.
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply 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: Expenditures reported in the quarterly financial status reports did not agree to supporting documentation.
Questioned Costs: None.
Context: For the ESSER II quarterly financial status reports for the quarters ending 3/31/2023 and 6/30/2023, expenditures reported did not agree to supporting schedules. For the ESSER III quarterly financial status reports for the quarters ending 9/30/2022 and 12/31/2022, expenditures reported did not agree to supporting schedules.
Cause: The City's procedures were not sufficient to ensure that reports were submitted accurately, and proper documentation maintained.
Effect: Reported expenditures were not properly supported.
Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation: We recommend the City review and enhance internal controls and procedures to ensure that all reports are prepared and reviewed for accuracy and supporting documentation maintained.
Views of Responsible Officials: There is no disagreement with the audit finding.