Finding Text
Assistance Listing Number(s): 84.425V
Name of Federal Program or Cluster: COVID-19 Education Stabilization Fund (ESF), American Rescue
Plan – Emergency Assistance to Non-Public Schools (ARP EANS)
Name of Federal Agency: Department of Education
Federal Award Identification Number: S425V210042
Federal Award Date: February 26, 2021 and September 24, 2021
Name of Pass-through Entity: State of North Carolina
Pass-through Entity Identifying Number: 60-04 and 60-05
Award Period: July 1, 2022 through September 30, 2023 and July 1, 2022 through September 30, 2024
Criteria: Uniform Guidance 2 CFR 200.303(a) requires the non-federal entity to 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.
Condition: 2 out of 4 financial reports tested did not have an internal control documented that supported
reasonable assurance of compliance with reporting requirements.
Cause: A written policy and procedures over documenting internal control(s) over reporting was not
designed and implemented.
Effect or Potential Effect: Reports may be incomplete or inaccurate.
Repeat Finding: No
Recommendation: Internal control should be documented to ensure compliance with the reporting
compliance requirement. Documentation should include a signed certification by the preparer and a
reviewer that the requests for payment, written summaries of reporting-specific meetings with grantors, and
any other reporting activities are complete, accurate, and agree to supporting records of expenditures or
other accounting or database information. Written policies and procedures should be designed and
implemented for documentation of internal controls performed for reporting.
Views of Responsible Officials: The organization agrees with the finding.