Finding 528139 (2024-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-14

AI Summary

  • Core Issue: The School Corporation lacks effective internal controls to verify the accuracy of enrollment and poverty data used for Title I funding applications.
  • Impacted Requirements: This finding highlights noncompliance with eligibility requirements under 2 CFR 200.303, which mandates maintaining effective internal controls over federal awards.
  • Recommended Follow-Up: Management should enhance internal controls to ensure that data in the Title I application is accurately verified against the Pupil Enrollment report.

Finding Text

FINDING 2024-001 Subject: Title I Grants to Local Educational Agencies - Eligibility Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listings Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A210014, S010A220014, S010A230014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Eligibility Audit Finding: Material Weakness Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-006. Condition and Context 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 Eligibility compliance requirement. The School Corporation did not have a documented oversight, review, or approval process in place to ensure the accuracy of enrollment and poverty data in the Eligible School Summary portion of the Title I application, which is how the Title I funding is determined. The lack of internal controls was a systemic issue throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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). . . ." Cause School Corporation officials were unaware they should verify the accuracy of the poverty and enrollment data imported into the Eligible School Summary portion of the Title I applications, as the data had been prepopulated by the Indiana Department of Education. Effect The lack of an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the Eligibility compliance requirement. Verifying the accuracy of the student poverty and enrollment data in the application will ensure that targeted assistance funding received is allocated to the proper schools within the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management strengthen its system of internal controls to ensure that data in the Eligible School Summary section of the Title I application has been verified for accuracy to the corresponding period's Pupil Enrollment (PE) report data. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.

Corrective Action Plan

FINDING 2024-001 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Summary of Finding: The school corporation did not have a documented oversight, review, or approval process in place to ensure the accuracy of enrollment and poverty data in the Eligible School Summary portion of the Title I application, which is how Title I funding is determined. It is recommended that the school corporation’s management strengthen its system of internal controls to ensure that data in the Eligible School Summary section of the Title I application has been verified for accuracy to the corresponding period’s Pupil Enrollment (PE) report data. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Real time reporting will be compiled by the Data Management Specialist (currently Stephanie Jackson) and will be reviewed by the Title I Grant Coordinator (currently Dr. Brady Scott). Annual Financial reports will be compiled by the Director of Business Affairs (currently John Szabo), and prior to submission those reports will be reviewed by the Title I Grant Coordinator. Anticipated Completion Date: July 2025

Categories

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

Other Findings in this Audit

  • 528140 2024-002
    Material Weakness Repeat
  • 528141 2024-003
    Material Weakness Repeat
  • 528142 2024-001
    Material Weakness Repeat
  • 528143 2024-002
    Material Weakness Repeat
  • 528144 2024-003
    Material Weakness Repeat
  • 528145 2024-004
    Material Weakness Repeat
  • 528146 2024-005
    Material Weakness
  • 528147 2024-004
    Material Weakness Repeat
  • 528148 2024-005
    Material Weakness
  • 528149 2024-004
    Material Weakness Repeat
  • 528150 2024-005
    Material Weakness
  • 528151 2024-004
    Material Weakness Repeat
  • 528152 2024-005
    Material Weakness
  • 528153 2024-004
    Material Weakness Repeat
  • 528154 2024-005
    Material Weakness
  • 528155 2024-004
    Material Weakness Repeat
  • 528156 2024-005
    Material Weakness
  • 1104581 2024-001
    Material Weakness Repeat
  • 1104582 2024-002
    Material Weakness Repeat
  • 1104583 2024-003
    Material Weakness Repeat
  • 1104584 2024-001
    Material Weakness Repeat
  • 1104585 2024-002
    Material Weakness Repeat
  • 1104586 2024-003
    Material Weakness Repeat
  • 1104587 2024-004
    Material Weakness Repeat
  • 1104588 2024-005
    Material Weakness
  • 1104589 2024-004
    Material Weakness Repeat
  • 1104590 2024-005
    Material Weakness
  • 1104591 2024-004
    Material Weakness Repeat
  • 1104592 2024-005
    Material Weakness
  • 1104593 2024-004
    Material Weakness Repeat
  • 1104594 2024-005
    Material Weakness
  • 1104595 2024-004
    Material Weakness Repeat
  • 1104596 2024-005
    Material Weakness
  • 1104597 2024-004
    Material Weakness Repeat
  • 1104598 2024-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund 2023 $2.97M
84.425 Education Stabilization Fund 2024 $2.73M
10.555 National School Lunch Program 2023 $1.87M
10.555 National School Lunch Program 2024 $1.86M
84.010 Title I Grants to Local Educational Agencies 2024 $1.20M
84.027 Special Education Grants to States 2023 $1.10M
84.010 Title I Grants to Local Educational Agencies 2023 $907,836
10.553 School Breakfast Program 2023 $641,429
10.553 School Breakfast Program 2024 $597,006
84.027 Special Education Grants to States 2024 $204,865
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) 2024 $154,369
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) 2023 $114,081
84.424 Student Support and Academic Enrichment Program 2024 $79,170
84.358 Rural Education 2023 $71,369
84.424 Student Support and Academic Enrichment Program 2023 $51,976
84.002 Adult Education - Basic Grants to States 2024 $34,906
84.358 Rural Education 2024 $34,866
84.002 Adult Education - Basic Grants to States 2023 $34,855
84.173 Special Education Preschool Grants 2023 $33,476
84.048 Career and Technical Education -- Basic Grants to States 2023 $29,956
84.048 Career and Technical Education -- Basic Grants to States 2024 $28,158
84.173 Special Education Preschool Grants 2024 $15,452