Finding Text
FINDING 2024-013
Subject: COVID-19 - Education Stabilization Fund - Reporting
Federal Agency: Department of Education
Federal Program: COVID-19 - Education Stabilization Fund
Assistance Listings Numbers: 84.425C, 84.425D, 84.425U
Federal Award Numbers and Years (or Other Identifying Numbers): S425C200018, S425D200013,
S425D210013, S425U210013
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Reporting
Audit Finding: Material Weakness
Repeat Finding
This is a repeat finding from the immediately prior audit report. The prior audit finding number was
2022-002.
INDIANA STATE BOARD OF ACCOUNTS
38
HUNTINGTON COUNTY COMMUNITY SCHOOL CORPORATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Condition and Context
An effective internal control system, which would include segregation of duties, was not in place at
the School Corporation in order to ensure compliance with requirements related to the grant agreement
and the Reporting compliance requirement.
The School Corporation had not designed nor implemented a system of internal controls to ensure
that the annual Elementary and Secondary School Emergency Relief (ESSER) and the Governor's
Emergency Education Relief (GEER) annual Data Collection reports (Reports) were complete and
accurately submitted. The Reports were prepared and submitted in JotForm, the online application used
by Indiana Department of Education to collect information, by one employee without an oversight or review
process in place to prevent, or detect and correct, errors.
The lack of internal controls was systemic 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
Management did not develop a system of internal controls that segregated key functions over the
Reports.
Effect
Without the proper implementation of an effectively designed system of internal controls, the School
Corporation is at risk of noncompliance with the grant agreement and the Reporting compliance requirement.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that the School Corporation's management establish a system of internal
controls related to the grant agreement and the Reporting compliance requirement.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.