Finding 569044 (2024-004)

Reference Number: 2024-04 Compliance Requirement: Reporting Type of Finding: Internal control and Compliance Internal Control Impact: Material weakness Compliance Impact: Material Noncompliance . AL Number and Title: 84.425 – COVID-19 Education Stabilization Fund Federal Awarding Agency: U.S. Department of Education Federal Award Number: None Pass-through Entity: Alabama Department of Education Pass-through Award Number: None Questioned Costs: None Condition: The Board could not provide a copy, with supporting documentation, of the annual required information submission to the Alabama Department of Education for the federal program. Criteria: Per 2 CFR § 200.303, the non-Federal entity must 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: Internal controls are not in place to ensure that the reports submitted to the pass-through entity are adequately supported by information derived from the accounting system. No evidence of review by someone other than the preparer is maintained. Effect: Information provided to the Alabama Department of Education may be incorrect or incomplete or not submitted timely. Recommendation: Internal controls should be developed to ensure that reports are completed and submitted timely, are supported by information derived from the accounting system, and are reviewed and approved prior to being submitted to the State of Alabama. Client Response: We agree with this finding.