Finding Text
Finding 2023-004
Information on the federal program:
Subject: Title I Grants to Local Educational Agencies - Internal Controls
Federal Agency: Department of Education
Federal Program: Title I Grants to Local Educational Agencies
Assistance Listing Number: 84.010
Federal Award Numbers and Years (or Other Identifying Numbers): S010A200014, S010A210014
S010A220014, S377A140015
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Special Test and Provisions – Annual Report Card, High School Graduation Rate
Audit Finding: Significant Deficiency
Criteria: 20 USC 7801(23)(B) states:
"The non-Federal entity must:
"To remove a student from a cohort, a school or local educational agency shall require documentation, or obtain documentation from the State educational agency, to confirm that the student has transferred out, emigrated to another country, or transferred to a prison or juvenile facility, or is deceased."
Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Special Test and Provisions compliance requirement.
Cause: The School Corporation's management had not developed a system of internal controls that would have ensured compliance with the grant agreement and the Special Test and Provisions compliance requirement.
Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs.
Questioned Costs: There were no questioned costs identified.
Context: In a sample of nine students who were removed from the cohort, we noted one student for which the school did not maintain appropriate mobility documentation to support their removal from the cohort.
Identification as a repeat finding, if applicable: No.
Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to ensure the school obtain all required documentation when removing a student from a cohort.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.