FAC Explorer

Audit 10748

FY End
2023-06-30
Total Expended
$8.10M
Findings
6
Programs
19
Organization: High Desert Education Service District (OR)
Year: 2023 Accepted: 2024-01-10
Auditor: Sensiba LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8191 2023-001 - - B
8192 2023-002 Significant Deficiency - B
8193 2023-003 Significant Deficiency - B
584633 2023-001 - - B
584634 2023-002 Significant Deficiency - B
584635 2023-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.141 Migrant Education_high School Equivalency Program $352,425 Yes 3
84.181 Special Education-Grants for Infants and Families $268,019 - 0
93.778 Medical Assistance Program $219,739 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $213,227 - 0
84.173 Special Education_preschool Grants $140,196 - 0
84.215 Fund for the Improvement of Education $124,179 - 0
84.184 Safe and Drug-Free Schools and Communities_national Programs $99,274 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $92,000 - 0
84.196 Education for Homeless Children and Youth $59,305 - 0
84.015 National Resource Centers Program for Foreign Language and Area Studies Or Foreign Language and International Studies Program and Foreign Language and Area Studies Fellowship Program $52,670 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $42,659 - 0
93.556 Promoting Safe and Stable Families $39,358 - 0
84.425 Education Stabilization Fund $34,619 Yes 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $23,294 - 0
84.027 Special Education_grants to States $22,181 - 0
84.048 Career and Technical Education -- Basic Grants to States $19,065 - 0
84.010 Title I Grants to Local Educational Agencies $9,209 - 0
84.011 Migrant Education_state Grant Program $5,243 Yes 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $732 - 0

Contacts

Name Title Type
TAY2B22ATNF5 Rochelle Friend Auditee
5416935623 Brenda Bartlett Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Accounting Accounting Policies: This Schedule is prepared on the same basis of accounting as the District’s financial statements. The district uses the modified accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The district has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District has negotiated an indirect cost rate with the Oregon Department of Education. This Schedule is prepared on the same basis of accounting as the District’s financial statements. The district uses the modified accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Note 2- Federal De Minimis Indirect Cost Rate Accounting Policies: This Schedule is prepared on the same basis of accounting as the District’s financial statements. The district uses the modified accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The district has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District has negotiated an indirect cost rate with the Oregon Department of Education. The district has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District has negotiated an indirect cost rate with the Oregon Department of Education
Title: Note 3 - Noncash Awards Accounting Policies: This Schedule is prepared on the same basis of accounting as the District’s financial statements. The district uses the modified accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The district has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District has negotiated an indirect cost rate with the Oregon Department of Education. The District was the recipient of personal protective equipment (masks, face shields, hand sanitizer and gloves) sourced from FEMA and passed through the Oregon Department of Education.The District is unable to determine the fair value of the donated items.
Title: Note 4 - Program Costs Accounting Policies: This Schedule is prepared on the same basis of accounting as the District’s financial statements. The district uses the modified accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The district has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District has negotiated an indirect cost rate with the Oregon Department of Education. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the district’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2023-001
AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B –Cost Principles. Criteria: Except where otherwise authorized by statute, costs must be incurred in the approved budget period in order to be allowable under Federal awards. Federal agencies may approve waivers to charge prior period costs using carry over funding. Condition: The district charged prior period wages and associated payroll costs to the program. The District did not apply for or receive a waiver from the federal agency. Cause: The District did not request a waiver from the federal agency approving the prior year costs prior to charging the program for the costs. Effect: Wages allocated to the program were not in the current approved budget period. Questioned cost: Wages, including associated payroll costs, totaled $35,844. The amount was calculated based on the total amount charged to the program which was in excess of the employee’s wage allocation to the program for the year ended June 30, 2023. Context: The error was isolated to one employees’ wage and associated payroll cost allocation. Recommendation: We recommend the District implement formal written policies for ensuring that all charges to federal programs be limited to those incurred in the current budget period. If management identifies a need to use carry over funds by charging prior year allowable expenses, permission should be obtained from the federal granting agency prior to such charge. Views of responsible officials: The District agrees with this finding and has requested a waiver from the granting agency. Processes will be reviewed, and any necessary changes will be implemented to ensure all wages are correctly allocated within the budget year
Finding 2023-002
AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B –Cost Principles. Criteria: Management must implement and maintain internal controls over compliance to ensure only allowable costs are charged to federal programs. Condition: The district charged wages and associated payroll costs to the program which were incurred in previous program budget periods and thus, not allowable to be charged to the program during the fiscal year ended June 30, 2023, absent an approved waiver from the federal agency. Cause: The District’s internal controls over compliance did not include sufficient controls to ensure that only costs incurred during the current budget period would be included in their request for reimbursement. Effect: Wages allocated to the program were not incurred in the current approved budget period, resulting in a questioned cost of $35,844 charged to the program. Context: The error was isolated to one employees’ wages and associated payroll costs. Recommendation: We recommend the District implement formal written policies for ensuring that all charges to federal programs be limited to those incurred in the current budget period. If management identifies a need to use carry over funds by charging prior year allowable expenses, permission should be obtained from the federal granting agency prior to such charge. Views of responsible officials: The District agrees with this finding and has requested a waiver from the granting agency. Processes will be reviewed, and any necessary changes will be implemented to ensure all wages are correctly allocated within the budget year.
Finding 2023-003
AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B – Cost Principles. Criteria: Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: Wages for the grant manager of the High School Equivalency program were allocated based on the amount of time that she was budgeted to spend on the program, but were not supported by contemporaneous time and effort documentation for actual time spent. Cause: The District did not have a control in place to require time and effort support for employees whose time was allocated to more than one cost objective. Effect: Wages allocated to the program were based on budgeted estimates of the time spent working in the program, but were not supported by documentation of the actual time spent on the program. Context: The error was isolated to one employees’ time charged to the program. Recommendation: The District should review current policy for substantiating the allocation of time for employees who are charged partially to one or more federal cost objectives. We note a formal timesheet or effort log may be used, but is not required. Valid time allocation support can also take the form of a daily schedule substantiating the hours spent working in the program on a daily basis, or similar. We recommend management implement a district-wide policy to ensure tracking of actual time spent for those employees who are not spending 100% of their time on a single federal cost objective. Views of responsible officials: The District agrees with this finding and will implement processes, where appropriate, to ensure all time and effort is properly documented.
Finding 2023-001
AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B –Cost Principles. Criteria: Except where otherwise authorized by statute, costs must be incurred in the approved budget period in order to be allowable under Federal awards. Federal agencies may approve waivers to charge prior period costs using carry over funding. Condition: The district charged prior period wages and associated payroll costs to the program. The District did not apply for or receive a waiver from the federal agency. Cause: The District did not request a waiver from the federal agency approving the prior year costs prior to charging the program for the costs. Effect: Wages allocated to the program were not in the current approved budget period. Questioned cost: Wages, including associated payroll costs, totaled $35,844. The amount was calculated based on the total amount charged to the program which was in excess of the employee’s wage allocation to the program for the year ended June 30, 2023. Context: The error was isolated to one employees’ wage and associated payroll cost allocation. Recommendation: We recommend the District implement formal written policies for ensuring that all charges to federal programs be limited to those incurred in the current budget period. If management identifies a need to use carry over funds by charging prior year allowable expenses, permission should be obtained from the federal granting agency prior to such charge. Views of responsible officials: The District agrees with this finding and has requested a waiver from the granting agency. Processes will be reviewed, and any necessary changes will be implemented to ensure all wages are correctly allocated within the budget year
Finding 2023-002
AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B –Cost Principles. Criteria: Management must implement and maintain internal controls over compliance to ensure only allowable costs are charged to federal programs. Condition: The district charged wages and associated payroll costs to the program which were incurred in previous program budget periods and thus, not allowable to be charged to the program during the fiscal year ended June 30, 2023, absent an approved waiver from the federal agency. Cause: The District’s internal controls over compliance did not include sufficient controls to ensure that only costs incurred during the current budget period would be included in their request for reimbursement. Effect: Wages allocated to the program were not incurred in the current approved budget period, resulting in a questioned cost of $35,844 charged to the program. Context: The error was isolated to one employees’ wages and associated payroll costs. Recommendation: We recommend the District implement formal written policies for ensuring that all charges to federal programs be limited to those incurred in the current budget period. If management identifies a need to use carry over funds by charging prior year allowable expenses, permission should be obtained from the federal granting agency prior to such charge. Views of responsible officials: The District agrees with this finding and has requested a waiver from the granting agency. Processes will be reviewed, and any necessary changes will be implemented to ensure all wages are correctly allocated within the budget year.
Finding 2023-003
AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B – Cost Principles. Criteria: Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: Wages for the grant manager of the High School Equivalency program were allocated based on the amount of time that she was budgeted to spend on the program, but were not supported by contemporaneous time and effort documentation for actual time spent. Cause: The District did not have a control in place to require time and effort support for employees whose time was allocated to more than one cost objective. Effect: Wages allocated to the program were based on budgeted estimates of the time spent working in the program, but were not supported by documentation of the actual time spent on the program. Context: The error was isolated to one employees’ time charged to the program. Recommendation: The District should review current policy for substantiating the allocation of time for employees who are charged partially to one or more federal cost objectives. We note a formal timesheet or effort log may be used, but is not required. Valid time allocation support can also take the form of a daily schedule substantiating the hours spent working in the program on a daily basis, or similar. We recommend management implement a district-wide policy to ensure tracking of actual time spent for those employees who are not spending 100% of their time on a single federal cost objective. Views of responsible officials: The District agrees with this finding and will implement processes, where appropriate, to ensure all time and effort is properly documented.