FAC Explorer

Audit 11384

FY End
2023-08-31
Total Expended
$28.39M
Findings
4
Programs
16
Organization: Texas City Independent School District (TX)
Year: 2023 Accepted: 2024-01-12
Auditor: Weaver and Tidwell LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8446 2023-001 Significant Deficiency Yes L
8447 2023-001 Significant Deficiency Yes L
584888 2023-001 Significant Deficiency Yes L
584889 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $4.57M - 0
84.287 Twenty-First Century Community Learning Centers $1.60M Yes 0
10.553 School Breakfast Program $1.43M - 0
93.600 Head Start $1.31M Yes 1
84.027 Special Education_grants to States $386,939 Yes 0
84.367 Improving Teacher Quality State Grants $352,189 - 0
84.424 Student Support and Academic Enrichment Program $171,146 - 0
84.048 Career and Technical Education -- Basic Grants to States $129,367 - 0
84.365 English Language Acquisition State Grants $56,586 - 0
84.196 Education for Homeless Children and Youth $55,890 - 0
84.425 Education Stabilization Fund $45,743 Yes 0
10.579 Child Nutrition Discretionary Grants Limited Availability $40,000 - 0
84.010 Title I Grants to Local Educational Agencies $34,309 - 0
84.173 Special Education_preschool Grants $17,380 Yes 0
84.369 Grants for State Assessments and Related Activities $7,316 - 0
10.649 Pandemic Ebt Administrative Costs $5,950 - 0

Contacts

Name Title Type
FJQBXVS33VV4 Margaret Lee Auditee
4099160112 Laura Lambert Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Basic Financial Statements Accounting Policies: The District accounts for all awards under federal programs in the General Fund and certain Special Revenue Funds in accordance with the Texas Education Agency’s Financial Accountability System Resource Guide. These programs are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in fund balance. The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally, unused balances are returned to the grantor at the close of specified project periods. National School Lunch Program non-cash commodities are recorded at their estimated market value at the time of donation. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The following is a reconciliation of expenditures of federal awards per Exhibit K-1 and federal revenues reported on Exhibit C-2:

Finding Details

Finding 2023-001
Criteria As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Health and Human Services established “reporting” compliance requirement applicable to the Head Start Cluster which stipulates that recipients submit special reporting related to real property subject to the terms and conditions of the contract. Condition During the fiscal year ended August 31, 2023, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual form SF-429 for Head Start. Cause The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect The lack of effective controls creates an environment in which errors could go undetected. Context The District failed to submit the annual SF-429 report for the reporting period ending November 30, 2022 in a timely manner and the report is delinquent. Repeat Finding Repeat finding of 2022-004 Recommendation We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan See corrective action plan.
Finding 2023-001
Criteria As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Health and Human Services established “reporting” compliance requirement applicable to the Head Start Cluster which stipulates that recipients submit special reporting related to real property subject to the terms and conditions of the contract. Condition During the fiscal year ended August 31, 2023, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual form SF-429 for Head Start. Cause The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect The lack of effective controls creates an environment in which errors could go undetected. Context The District failed to submit the annual SF-429 report for the reporting period ending November 30, 2022 in a timely manner and the report is delinquent. Repeat Finding Repeat finding of 2022-004 Recommendation We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan See corrective action plan.
Finding 2023-001
Criteria As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Health and Human Services established “reporting” compliance requirement applicable to the Head Start Cluster which stipulates that recipients submit special reporting related to real property subject to the terms and conditions of the contract. Condition During the fiscal year ended August 31, 2023, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual form SF-429 for Head Start. Cause The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect The lack of effective controls creates an environment in which errors could go undetected. Context The District failed to submit the annual SF-429 report for the reporting period ending November 30, 2022 in a timely manner and the report is delinquent. Repeat Finding Repeat finding of 2022-004 Recommendation We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan See corrective action plan.
Finding 2023-001
Criteria As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Health and Human Services established “reporting” compliance requirement applicable to the Head Start Cluster which stipulates that recipients submit special reporting related to real property subject to the terms and conditions of the contract. Condition During the fiscal year ended August 31, 2023, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual form SF-429 for Head Start. Cause The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect The lack of effective controls creates an environment in which errors could go undetected. Context The District failed to submit the annual SF-429 report for the reporting period ending November 30, 2022 in a timely manner and the report is delinquent. Repeat Finding Repeat finding of 2022-004 Recommendation We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan See corrective action plan.