Finding Text
FINDING 2023-006
Information on the federal program:
Subject: Education Stabilization Fund (ESSER) – Internal Controls
Federal Agency: Department of Education
Federal Program: COVID-19 – Education Stabilization Fund
Assistance Listing Number: 84.425C, 84.425D & 84.425U
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Equipment
Audit Finding: Material Weakness
Criteria: 2 CFR 200.313(d) states in part:
"The non-Federal entity must:
(2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment compliance requirements.
Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above.
Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs.
Questioned Costs: There were no questioned costs identified.
Context: We noted that there was no inventory of the property and equipment owned by the School Corporation performed during the audit period.
Identification as a repeat finding, if applicable: No.
Recommendation: We recommended that the School Corporation perform a physical inventory as least once every two years and formally document the results of their inventory count.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.