Finding 516472 (2023-009)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-20
Audit: 334382
Organization: Academy of America (MI)
Auditor: Uhy LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, specifically regarding the lack of evidence for review and approval of reports.
  • Impacted Requirements: Compliance with 2 CFR § 200.303, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-up: Ensure all reports include proper documentation of review and approval to strengthen internal controls.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Repeat Finding Yes Criteria – Per 2 CFR § 200.303, The 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 be in compliance 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 – During our testing for Reporting, it was noted that 3 out of 3 reports selected for testing did not have evidence of review and approval. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management did not follow their internal controls. Effect – Certain reports did not have evidence of review and approval. Recommendation – We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.

Corrective Action Plan

View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.

Categories

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

Other Findings in this Audit

  • 516473 2023-010
    Material Weakness
  • 516474 2023-009
    Material Weakness Repeat
  • 516475 2023-010
    Material Weakness
  • 516476 2023-009
    Material Weakness Repeat
  • 516477 2023-010
    Material Weakness
  • 1092914 2023-009
    Material Weakness Repeat
  • 1092915 2023-010
    Material Weakness
  • 1092916 2023-009
    Material Weakness Repeat
  • 1092917 2023-010
    Material Weakness
  • 1092918 2023-009
    Material Weakness Repeat
  • 1092919 2023-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425D Education Stabilization Fund $1.17M
84.425U Education Stabilization Fund $757,722
84.010A Title I Grants to Local Educational Agencies $333,858
84.287C Twenty-First Century Community Learning Centers $209,500
10.553 School Breakfast Program $144,034
84.027A Special Education Grants to States $120,841
10.555 National School Lunch Program $42,265
84.424A Student Support and Academic Enrichment Program $31,101
84.367A Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $20,072
84.027X Special Education Grants to States $16,900
84.173A Special Education Preschool Grants $5,833
84.365A English Language Acquisition State Grants $5,468
10.649 Pandemic Ebt Administrative Costs $1,256