Finding 513124 (2024-004)

2024-004 Department of Education Federal Financial Assistance Listing 84.425 COVID-19 Education Stabilization Fund Special Tests – Wage Rate Requirement Material Weakness in Internal Control over Compliance Criteria – Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition – In our testing of special tests – wage rate requirements, the District did not obtain proper support to ensure required certified payrolls were submitted in a timely fashion. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect – Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs – None reported. Context/Sampling – Overall compliance requirement. Repeat Finding from Prior Years – No. Recommendation – We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials – There is no disagreement with the audit finding.