Finding 963822 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299547
Auditor: Crowe LLP

AI Summary

  • Core Issue: The School Corporation lacks a review control for the Annual Data Reports, leading to potential inaccuracies and late submissions.
  • Impacted Requirements: Compliance with 2 CFR 200.302(b) and 34 CFR 76.722 regarding accurate financial reporting and timely submissions.
  • Recommended Follow-Up: Implement a formal review process for report preparation and submission, ensuring a separate reviewer checks for accuracy and completeness, and maintain documentation of submissions.

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.

Categories

Subrecipient Monitoring Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 387370 2023-003
    Material Weakness
  • 387371 2023-003
    Material Weakness
  • 387372 2023-003
    Material Weakness
  • 387373 2023-003
    Material Weakness
  • 387374 2023-004
    Material Weakness
  • 387375 2023-004
    Material Weakness
  • 387376 2023-004
    Material Weakness
  • 387377 2023-004
    Material Weakness
  • 387378 2023-005
    Material Weakness
  • 387379 2023-005
    Material Weakness
  • 387380 2023-005
    Material Weakness
  • 387381 2023-005
    Material Weakness
  • 963812 2023-003
    Material Weakness
  • 963813 2023-003
    Material Weakness
  • 963814 2023-003
    Material Weakness
  • 963815 2023-003
    Material Weakness
  • 963816 2023-004
    Material Weakness
  • 963817 2023-004
    Material Weakness
  • 963818 2023-004
    Material Weakness
  • 963819 2023-004
    Material Weakness
  • 963820 2023-005
    Material Weakness
  • 963821 2023-005
    Material Weakness
  • 963823 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $309,006
84.425 Covid-19 - Education Stabilization Fund $276,329
84.027 Special Education_grants to States $244,558
84.010 Title I Grants to Local Educational Agencies $106,240
10.555 National School Lunch Program $104,751
84.367 Improving Teacher Quality State Grants $45,530
93.778 Medical Assistance Program $34,699
10.579 Child Nutrition Discretionary Grants Limited Availability $30,000
84.424 Student Support and Academic Enrichment Program $11,695
84.173 Special Education_preschool Grants $2,620