Finding Text
2022-014: 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 Activities Allowed or Unallowed and Allowable Costs/Cost Principles 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 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. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.