Finding Text
Significant Deficiency in Internal Control Over Compliance and Noncompliance
Assistance Listing: 84.425D – COVID-19 – Elementary and Secondary School Emergency Relief Fund
Federal Agency Name: United States Department of Education Criteria:
As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations
and the provisions of grant agreements and contracts, and to maintain internal control to provide
reasonable assurance of compliance with these requirements.
The U.S. Department of Education established the “equipment and real property management”
compliance requirement applicable to the Elementary and Secondary School Emergency Relief Fund
which stipulates that all capital purchases by subrecipients must receive prior approval from the Texas
Department of Education.
Condition:
During the fiscal year ended August 31, 2023, the District did not have effective internal controls over
compliance with the equipment and real property management requirement described above. The
District requested and received reimbursement for capital purchases that had not received prior
approval from the Texas Department of Education.
Cause:
The District did not have adequately designed controls in place to ensure compliance with the
equipment and real property management requirement.
Effect or Potential Effect:
The District’s capital purchases could have been denied by the Texas Department of Education.
Questioned Costs:
None.
Identification as a repeat finding, if applicable:
Not a repeat finding.
Recommendation:
We recommend that the District review its internal controls over compliance to ensure controls are
suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable
compliance requirements.
Views of Responsible Officials and Planned Corrective Action Plan:
See corrective action plan.
Pass-Through Entity: Texas Department of Education
Award Number: S425D210042
Compliance Requirement: Equipment and Real Property Management