Finding Text
FINDING 2022-004 Subject: COVID-19 Education Stabilization Fund ? Reporting, Special Tests and Provisions ? Participation of Private School Children Federal Agency: Department of Education Federal Program: COVID-19 Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Reporting, Special Tests and Provisions ? Participation of Private School Children Audit Finding: Material Weakness 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 awards 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: An effective internal control system was not designed, nor implemented at the School Corporation to ensure compliance with requirements related to the grant agreement and the Reporting and Special Tests and Provisions ? Participation of Private School Children compliance requirements. Reporting The annual Elementary and Secondary School Emergency Relief (ESSER) Data Collection reports were prepared and submitted by the Director of Elementary Education without any oversight, review or approval process in place to prevent, or detect and correct, errors. Participation of Private School Children There were no documented controls in place to ensure that planned services were provided to the Private School Children. The lack of internal controls was a systemic issue throughout the audit period. Cause: Management had not designed nor implemented a system of internal control that would have ensured compliance with the grant agreement and the Special Tests and Provisions ? Participation of Private School Children and Reporting compliance requirements. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the Special Tests and Provisions ? Participation of Private School Children and Reporting compliance requirements. Questioned Costs: There were no questioned costs identified. Context: An effective internal control system was not designed, nor implemented at the School Corporation to ensure compliance with requirements related to the grant agreement and the Reporting and Special Tests and Provisions ? Participation of Private School Children compliance requirements. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal control related to the grant agreement and the Special Tests and Provisions ? Participation of Private School Children and Reporting compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.