Finding Text
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.