Finding Text
2022-003
Federal Agency: U.S. Department of Education
Federal Programs: Education Stabilization Fund
Assistance Listing Number: 84.425D, 84.425U
Pass-Through Agency: Rhode Island Department of Elementary and Secondary Education
Pass-Through Number: 4672-10502-101, 4872-505020-201
Award Period: July 1, 2021 – June 30, 2022
Compliance Requirement: Reporting
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: Compliance: Per the Rhode Island Department of Elementary and
Secondary Education Grant Award Notification, specifically related to ESSER Fund I, Special Grant
Award Conditions, "Interim financial status reports are due quarterly for the periods ending 9/30/2020
through 9/30/2022. Final financial status reports are due 15 days after the liquidation of all obligations,
but no later than 11/15/2022. Per the Rhode Island Department of Elementary and Secondary
Education Grant Award Notification, specifically related to ESSER Fund III, Special Grant Award
Conditions, "Interim financial status reports are due quarterly for the periods ending 3/31/2022 through
9/30/2024. Final financial status reports are due 15 days after the liquidation of all obligations, but no
later than 11/15/2024.
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: 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 comply 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: Expenditures reported in the quarterly financial status reports did not agree to supporting
documentation.
Questioned Costs: None.
Context: For the ESSER I quarterly financial status report for the quarter ending 9/30/2021,
expenditures reported did not agree to supporting schedules. For the ESSER III quarterly financial
status report for the quarter ending 6/30/2022, expenditures reported did not agree to supporting
schedules.
Cause: The City's procedures were not sufficient to ensure that reports were submitted accurately and
proper documentation maintained.
Effect: Reported expenditures were not properly supported.
Recommendation: We recommend the City review and enhance internal controls and procedures to
ensure that all reports are prepared and reviewed for accuracy and supporting documentation
maintained.
Views of Responsible Officials: There is no disagreement with the audit finding.