Finding Text
2022 ? 008 Federal Agency: U.S. Department of Education Federal Program Name: COVID-19 Education Stabilization Fund Assistance Listing Number: 84.425D Federal Award Identification Number and Year: FY 2021 and FY 2022 Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: S425D200013 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Amounts reports must be supported by the unit's records. Per 2 CFR 200.303, 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). Condition: The School Corporation did not have a documented review and approval process over reporting. Questioned costs: None Context: During our testing of reporting, it was noted 4 of 4 required reports selected did not have proper review process implemented. Cause: Oversight Effect: The failure to establish an effective internal control system may enable noncompliance with the grant agreement and the reporting compliance requirement. Noncompliance may go undetected. Repeat Finding: No Recommendation: We recommend the School Corporation management establish a system of internal control to ensure compliance. Training over proper internal control development and implementation may be beneficial. Views of responsible officials: There is no disagreement with the audit finding.