Finding 977795 (2023-002)

Assistance Listing Number: 21.027 Name of Federal Program or Cluster: COVID-19—Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Name of Pass-through Entity: Office of the State Superintendent of Education Award Period: May 25, 2022 – September 30, 2024 Criteria: 2 CFR Section 200.303 of the Uniform Grant Guidance requires a non-federal entity to establish and maintain effective internal controls to ensure compliance with federal statues, regulations, and the terms and conditions of federal awards. Condition: Kid Power, Inc.'s internal controls over review of cost allocation journal entries, allowable costs and activities, period of performance, cash management, matching, and reporting were not documented. Cause: Written procedures were not established for the documentation of internal controls over compliance requirements. Effect or Potential Effect: This could result in noncompliance, disallowed costs, or discontinuance of federal funding. Recommendation: We recommend documenting the controls over each compliance requirement and providing training on documentation and forms to provide evidence of review. Views of Responsible Officials: Kid Power, Inc. agrees with the finding and will establish written procedures, train individuals, and document the review of cost allocation journal entries, allowable costs and activities, period of performance, cash management, matching, and reporting.