Finding Text
FINDING 2024-005
Subject: Special Education Cluster (IDEA) - Internal Controls
Federal Agency: Department of Education
Federal Programs: Special Education Grants to States, Special Education Preschool Grants
Assistance Listings Numbers: 84.027, 84.173
Federal Award Numbers and Years (or Other Identifying Numbers): 21611-014-PN01, 22611-014-PN01,
21619-014-PN01
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Cash Management
Audit Finding: Significant Deficiency
INDIANA STATE BOARD OF ACCOUNTS
23
GOSHEN COMMUNITY SCHOOLS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Repeat Finding
This is a repeat finding from the immediately prior audit report. The prior audit finding number was
2022-005.
Condition and Context
The School Corporation had not effectively designed or implemented a system of internal controls
to prevent, or detect and correct, noncompliance. Although reimbursement requests were prepared by the
Grant Manager and reviewed by the Treasurer, the documentation that accompanied the reimbursement
requests did not provide sufficient detail to know if expenses were paid prior to requesting reimbursement.
The lack of internal controls was isolated to the 2021 Special Education Grants to States grant
award number 21611-014-PN01, 2022 Special Education Grants to States grant award number
22611-014-PN01, and the 2021 Special Education Preschool Grants grant award number
21619-014-PN01.
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 had not established an effective system of internal controls that would have ensured
expenses were paid prior to requesting reimbursement. Management did not maintain all documentation
to support the request for reimbursement.
Effect
Without an effective system of internal controls, the School Corporation is at risk for noncompliance
with the grant agreement and the Cash Management 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 Cash Management compliance requirement to include all
documentation to support the request for reimbursement.
INDIANA STATE BOARD OF ACCOUNTS
24
GOSHEN COMMUNITY SCHOOLS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.