FAC Explorer

Finding 501769 (2022-011)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-10-04
Audit: 323858
Organization: Highscope Educational Research Foundation (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: The final Federal Financial Report (FFR) was incomplete and inaccurate, lacking essential data like cash receipts and expenditures.
  • Impacted Requirements: Compliance with federal reporting standards is critical; failure to meet these can lead to misreporting financial information to the grantor.
  • Recommended Follow-Up: Provide training for all staff managing federal grants and ensure all reports include evidence of review and approval.

Finding Text

Finding Type. Material Noncompliance/Material Weakness in Internal Control over Compliance (Reporting). Program. U.S. Department of Education; Education Innovation and Research, Supporting Preschool and Kindergarten Students; ALN 84.411C; Award Number U411C160089. Criteria. Recipients use the Federal Financial Report (FFR) to report expenditures and other financial information for federal awards. Such reports must be complete and accurate. Condition. We reviewed the final FFR, which was not complete and accurate. Required information missing from the FFR included cash receipt, cash disbursement, and expenditure data. Cause. The Organization does not appear to understand the reporting requirements. In addition, there was no evidence that the report was reviewed and approved. Effect. The Organization reported incorrect financial information to the grantor. Questioned Costs. No costs are required to be reported as a result of this finding. Recommendation. We recommend that all employees administering federal grants and having primary responsibility for compliance with grant requirements be provided the necessary training to be able to identify and comply with such requirements. All reports should have evidence of review and approval. View of Responsible Officials. A policy around federal programs has been created and will be implemented for all future federal grants, which includes the need for all parties who are involved in the administration to have federal funds training as well as comply with the policy. A position has been added to the organization to oversee all grants to ensure future compliance.

Corrective Action Plan

Finding Type. Material Noncompliance/Material Weakness in Internal Control over Compliance (Reporting). Program. U.S. Department of Education; Education Innovation and Research, Supporting Preschool and Kindergarten Students; ALN 84.411C; Award Number U411C160089. Condition. We reviewed the final FFR, which was not complete and accurate. Required information missing from the FFR included cash receipt, cash disbursement, and expenditure data. Effect. The Organization reported incorrect financial information to the grantor. Corrective Action Plan. A policy around federal programs has been created and will be implemented for all future federal grants, which includes the need for all parties who are involved in the administration to have federal funds training as well as comply with the policy. A position has been added to the organization to oversee all grants to ensure future compliance. Contact Person Responsible. Mark Ortiz, Operations Project Manager Anticipated Completion Date. September 15, 2024

Categories

Reporting

Other Findings in this Audit

  • 501765 2022-007
    Significant Deficiency
  • 501766 2022-008
    Significant Deficiency
  • 501767 2022-009
    Significant Deficiency
  • 501768 2022-010
    Significant Deficiency
  • 1078207 2022-007
    Significant Deficiency
  • 1078208 2022-008
    Significant Deficiency
  • 1078209 2022-009
    Significant Deficiency
  • 1078210 2022-010
    Significant Deficiency
  • 1078211 2022-011
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.411 Education Innovation and Research (formerly Investing in Innovation (i3) Fund) $791,466
84.173 Special Education Preschool Grants $13,122