Finding Text
FINDING 2023-005
Information on the federal program:
Subject: Education Stabilization Fund – Internal Controls
Federal Agency: Department of Education
Federal Program: COVID-19 – Education Stabilization Fund
Assistance Listing Number: 84.425C, 84.425D, 84.425U
Federal Award Numbers: S425C200018, S425D200013, S425D210013
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Reporting
Audit Findings: Material Weakness
Criteria:
2 CFR 200.302(b) states in part:
"The financial management system of each non-Federal entity must provide for the following:
(2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in
accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ."
34 CFR 76.722 states:
"A State may require a subgrantee to submit reports in a manner and format that assists the State in
complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the
program."
Condition: The School Corporation did not have a review control in place to ensure the annual data report
was reviewed by someone other than the preparer and that the report was submitted timely. Original
documents and related support were not maintained by the School Corporation.
Cause: There were not sufficient internal controls in place to ensure the Annual Data Report was submitted
by the Indiana Department of Education’s deadline and that the Annual Data Report agreed to the
underlying fund ledger detail.
Effect: The Annual Data Reports may not be submitted on time and could be submitted with incorrect
information.
Questioned Costs: There were no questioned costs identified.
Context: The School Corporation did not have a formal review process in place to review the Annual Data
Reports that were required to be submitted during the audit period. Original copies of the reports and
submission receipts were not maintained and therefore, we were unable to verify the reports were submitted
by the required due dates. The Annual Data Report for the period of October 1, 2020 through June 30,
2021 was overstated by $30,211 and the report for the period of July 1, 2021 through June 30, 2022, was
understated by $549,488.
Identification as a repeat finding, if applicable: No.
Recommendation: We recommend management review internal controls around the preparation, review,
and submission of the Annual Data Reports to verify reports are submitted timely. We recommend someone
other than the preparer of the report perform a documented review prior to submission to validate the
accuracy and completeness of the data submitted and that the School Corporation maintain records to
validate the reports were submitted timely.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding
and has prepared a corrective action plan.