Finding 50093 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-23
Audit: 43321
Organization: North Daviess Community Schools (IN)
Auditor: Crowe LLP

AI Summary

  • Core Issue: The School Corporation lacked a documented review process for the Annual Data Report, risking compliance with federal reporting requirements.
  • Impacted Requirements: Compliance with 2 CFR 200.302(b) and 34 CFR 76.722 regarding accurate financial reporting and review controls.
  • Recommended Follow-Up: Implement a documented review by someone other than the report preparer before submission to ensure data accuracy and completeness.

Finding Text

FINDING 2022-003 Information on the federal program: Subject: Education Stabilization Fund ? Annual Data Report Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425C200018, S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: The School Corporation did not have a documented review control in place to ensure the annual data report was reviewed by someone other than the preparer. Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted by the Indiana Department of Education?s deadline. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the Reporting compliance requirements. Questioned Costs: There were no questioned costs identified. Context: There was no documented review by someone other than the preparer of the Annual Data Report to ensure the information submitted was complete and accurate. Identification as a repeat finding: No. Recommendation: We recommend someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.

Corrective Action Plan

FINDING 2022-003 Information on the federal program: Subject: Education Stabilization Fund - Annual Data Report Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: The School Corporation did not have a documented review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Context: The Annual Data Report for the period of October 1, 2020 to June 30, 2021 was due to the Indiana Department of Education (IDOE) by May 13, 2022. The School Corporation submitted the report on May 16, 2022. In addition, there was no documented review by someone other than the preparer of the report to ensure the information submitted was complete and accurate. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action. Dr. Barry Stone, Director of Curriculum will prepare the Annual Data Report in a timely matter and the reports will be reviewed by Mrs. Berry, Superintendent and then signed off before submitting the report. Responsible party and timeline for completion: Federal regulation requires name and title of person overseeing corrective action plan and anticipated completion date. Dr. Barry Stone, Director of Curriculum will compile the report and Mrs. Berry, Superintendent will approve and sign off when the report is due.

Categories

Subrecipient Monitoring Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50087 2022-004
    Significant Deficiency
  • 50088 2022-004
    Significant Deficiency
  • 50089 2022-004
    Significant Deficiency
  • 50090 2022-004
    Significant Deficiency
  • 50091 2022-004
    Significant Deficiency
  • 50092 2022-004
    Significant Deficiency
  • 50094 2022-003
    Material Weakness
  • 50095 2022-003
    Material Weakness
  • 50096 2022-003
    Material Weakness
  • 626529 2022-004
    Significant Deficiency
  • 626530 2022-004
    Significant Deficiency
  • 626531 2022-004
    Significant Deficiency
  • 626532 2022-004
    Significant Deficiency
  • 626533 2022-004
    Significant Deficiency
  • 626534 2022-004
    Significant Deficiency
  • 626535 2022-003
    Material Weakness
  • 626536 2022-003
    Material Weakness
  • 626537 2022-003
    Material Weakness
  • 626538 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $438,235
84.425 Covid-19 - Education Stabilization Fund $426,698
84.027 Special Education_grants to States $184,264
10.555 National School Lunch Program $140,992
84.010 Title I Grants to Local Educational Agencies $121,545
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $68,492
84.367 Supporting Effective Instruction State Grants $36,602
84.424 Student Support and Academic Enrichment Program $25,095
84.173 Special Education_preschool Grants $7,815