Finding Text
Federal Agency: U.S. Department of Education
Federal Programs: Special Education - Preschool Grants (IDEA Preschool)
Assistance Listing Number: 84.173
Federal Award Identification Number and Year: H173A220057, 2021
Pass-Through Agency: Rhode Island Department of Elementary and Secondary Education
Pass-Through Number: 2725135.02.02
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Allowable Activities/Allowable Costs
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria or specific requirement: 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: The City did not have supporting documentation available for the approval of the split in federal and local payroll allocations.
Questioned Costs: Unknown.
Context: For 4 of 40 payroll transactions selected for testing, the City was unable to provide support for the approval of the split of funds between federal and local sources.
Cause: The Department was unable to provide documentation of the internal controls implemented to ensure it correctly reported compliance with allowable activities and costs.
Effect: Insufficient controls over the allowable activities and costs requirements can result in undetected errors and noncompliance with allowable activities and cost requirements.
Repeat Finding: No.
Recommendation: We recommend the Department develop and document internal controls to provide proper support and approval over the allocation of salaries.
Views of Responsible Officials: There is no disagreement with the audit finding.