Finding Text
Finding 2023-004: Reporting
Federal Department: U.S. Department of Education
Pass-through Agencies: State of South Carolina Department of Education, Minnesota Department of Education, and DC Office of the State Superintendent of Education
Federal Program Name: Twenty-First Century Community Learning Centers
Assistance Listing Number: 84.287
Type of Finding:
Material Weakness in Internal Control over Compliance
Material Noncompliance (Modified Opinion)
Criteria
The subgrant award agreement between State of South Carolina Department of Education (SCDE) and CDF – Scope of Work and Special Conditions states that “programs are required to submit quarterly (at a minimum) expenditure reports via the SCDE’s grants accounting processing system (GAPS)… In accordance with generally accepted accounting principles (GAAP), all expenditure reports for funds spent must be submitted to the SCDE by the specified deadline”.
The subgrant award agreement between Minnesota Department of Education (MDE) and CDF states that “Financial Reporting Forms (FRF) summarizing grant expenditures to date, shall be submitted in the form and manner prescribed by MDE”.
The subgrant award agreement between DC Office of the State Superintendent of Education (OSSE) and CDF states that “The grant recipient is responsible for complying with all reporting requirements, and grant recipients are required to maintain all necessary supporting documentation and to ensure such documentation is available to OSSE, the U.S. Department of Education and/or other authorized entities for review, upon request.”
Condition/Context
During the current audit period, CDF is not in accordance with federal regulations regarding the reporting requirements.
During our review, we noted that CDF was required to submit both periodic financial and progress reports. We selected 12 reports (10 financial and two progress reports across all five grants) for testing.
Exceptions were noted in eight of 12 tested reports:
For five reports tested, we were not provided with evidence that the reports were properly reviewed or approved before submission.
For eight reports tested, we were not provided with copies of the actual reports, including the related supporting documentation. We also were not provided with any evidence of submissions of such reports.
Cause
Based on our discussions with management, this finding occurred due to staff turnover. As a result, policies and procedures were not implemented consistently and correctly to ensure timely, complete, and accurate financial reporting with adequate supporting documentation.
Effect
Failure to submit reports in a timely manner impairs the grantor agency’s ability to monitor program activities and could result in the loss of grant funding. Also, the failure to maintain adequate supporting documentation could result in inaccurate reporting and is a violation of grantor(s) reporting requirements.
Questioned Costs
Not applicable.
Identification of Repeat Findings
Repeated (Prior Finding No. 2022-003).
Views of Responsible Officials and Corrective Action Plan
CDF agrees with the finding and recommendation. See CDF’s Corrective Action Plan on pages 18-20.