Finding Text
FINDING 2024-002
Subject: COVID-19 - Education Stabilization Fund - Reporting
Federal Agency: Department of Education
Federal Program: COVID-19 - Education Stabilization Fund
Assistance Listings Numbers: 84.425D, 84.425U
Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U200013
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Reporting
Audit Finding: Material Weakness
Condition and Context
An effective internal control system was not in place and properly documented at the School
Corporation to ensure compliance with requirements related to the grant agreement and the Reporting
compliance requirement.
The School Corporation had not properly documented a system of internal control to ensure that
the annual Elementary and Secondary School Emergency Relief (ESSER) annual data collection reports
(Reports) were completely and accurately submitted. Two individuals worked together to prepare and
review the Reports; however, the review was not documented.
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). . . ."
INDIANA STATE BOARD OF ACCOUNTS 15
SOUTH DEARBORN COMMUNITY SCHOOL CORPORATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Cause
A proper system of internal controls was not documented by management of the School
Corporation. Two individuals worked together to prepare, review, and submit the required Reports;
however, evidence of the review was documented.
Effect
Without the proper implementation of an effectively designed system of internal controls, errors on
reports could remain undetected and uncorrected.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that management of the School Corporation establish a proper system of
internal controls and develop policies and procedures to ensure all reports submitted on behalf of the
COVID-19 - Education Stabilization Fund program funds are accurate and complete.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.