Finding Text
2022 ? 004: Special Tests and Provision ? Annual Report Card, High School Graduation RateFederal Agency: U.S. Department of EducationFederal Program Name: Title I Grants to Local Education AgenciesAssistance Listing Number: 84.010AFederal Award Identification Number and Year: S010A200014; S010A210014 - FY2020, FY2021Pass-Through Agency: Indiana Department of EducationPass-Through Number(s): S010A200014; S010A210014Award Period: FY2021, FY2022Type of Finding:? Significant Deficiency in Internal Control over Compliance? Other MattersCriteria or specific requirement: 2 CFR section 200.303 states in part:?The non-Federal entity must:(a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance 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: During our testing of the annual report card, it was noted that the School Corporation did not obtain and retain appropriate approval documentation for a student withdrawal from the regulatory cohort.Questioned costs: NoneContext: 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 Special Tests and Provisions ? Annual Report Card, High School Graduation Rate documentation. For one of the eight individuals selected for testing, the supporting documentation was not complete.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 design and implement an effective internal control system enabled significant deficiency to go undetected.Repeat Finding: NoRecommendation: We recommend that the School Corporation's management review their policies and procedures surrounding federal grants and ensure that documentation is obtained and retained to ensure that all necessary compliance requirements are met.Views of responsible officials: There is no disagreement with the audit finding.