Finding Text
Information on the federal program:
Subject: Title I Grants to Local Educational Agencies – Eligibility
Federal Agency: Department of Education
Federal Program: Title I Grants to Local Educational Agencies
Assistance Listing Number: 84.010A
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
Criteria: 2 CFR section 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). . . ."
Condition: An effective system of internal controls was not in place at the School Corporation to ensure
compliance with requirements related to the grant agreement and the eligibility compliance requirement.
Cause: Management had not developed an effective system of internal controls that would have ensured
compliance with the grant agreement and the eligibility 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: During the testing of eligibility, we noted three out of 25 eligibility samples that were reported as
free or reduced socioeconomic status to the Indiana Department of Education in the October 2022 data
exchange count, but supporting documentation supported these students as a paid status. These three
students should not have been reported as free or reduced socioeconomic status.
Identification as a repeat finding, if applicable: No.
Recommendation: We recommended that the School Corporation's management establish a system of
internal controls to review the applications submitted for free or reduced socioeconomic status to ensure
the students are classified correctly within the system. We also recommend that management have a
secondary review of the information submitted as part of the data exchange count to ensure the information
is accurate and agrees to the underlying detail.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding
and has prepared a corrective action plan.