Audit 12419

FY End
2023-06-30
Total Expended
$2.87M
Findings
2
Programs
12
Organization: Upper Perkiomen School District (PA)
Year: 2023 Accepted: 2024-01-19

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
9068 2023-004 - - B
585510 2023-004 - - B

Contacts

Name Title Type
QU1YFRK4FFB9 Drew Bishop Auditee
2155412452 Hank Miller, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting for all federal awards charged to governmental funds and on the accrual basis of accounting for all federal awards charged to proprietary funds, as contemplated by generally accepted accounting principles. De Minimis Rate Used: N Rate Explanation: The District did not charge any indirect costs to any of their federal grants and programs during this fiscal year. As such, the District did not use the 10% de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Upper Perkiomen School District under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Upper Perkiomen School District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Upper Perkiomen School District.
Title: Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting for all federal awards charged to governmental funds and on the accrual basis of accounting for all federal awards charged to proprietary funds, as contemplated by generally accepted accounting principles. De Minimis Rate Used: N Rate Explanation: The District did not charge any indirect costs to any of their federal grants and programs during this fiscal year. As such, the District did not use the 10% de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting for all federal awards charged to governmental funds and on the accrual basis of accounting for all federal awards charged to proprietary funds, as contemplated by generally accepted accounting principles.
Title: Organization and Scope Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting for all federal awards charged to governmental funds and on the accrual basis of accounting for all federal awards charged to proprietary funds, as contemplated by generally accepted accounting principles. De Minimis Rate Used: N Rate Explanation: The District did not charge any indirect costs to any of their federal grants and programs during this fiscal year. As such, the District did not use the 10% de minimis cost rate. The District recognized 3.1% of its total general fund revenue in federal awards, and 51.4% of its total enterprise fund revenue.
Title: Indirect Costs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting for all federal awards charged to governmental funds and on the accrual basis of accounting for all federal awards charged to proprietary funds, as contemplated by generally accepted accounting principles. De Minimis Rate Used: N Rate Explanation: The District did not charge any indirect costs to any of their federal grants and programs during this fiscal year. As such, the District did not use the 10% de minimis cost rate. The District did not charge any indirect costs to any of their federal grants and programs during this fiscal year. As such, the District did not use the 10% de minimis cost rate.
Title: Program Disclosure Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting for all federal awards charged to governmental funds and on the accrual basis of accounting for all federal awards charged to proprietary funds, as contemplated by generally accepted accounting principles. De Minimis Rate Used: N Rate Explanation: The District did not charge any indirect costs to any of their federal grants and programs during this fiscal year. As such, the District did not use the 10% de minimis cost rate. 1. The federal awards passed through the Montgomery County Intermediate Unit, under the U.S. Department of Education heading, is part of a consortium of participating school districts. In accordance with directions from the Commonwealth of Pennsylvania, these awards are reported on the basic financial statements as local source revenue. 2. The Federal Grants were passed through the following entities in the totals below: "See Notes to the SEFA for chart/table". 3. The District received non-monetary assistance from the U.S. Department of Agriculture of $95,122 in the form of commodities. These commodities are valued at U.S.D.A.’s approximate costs. During the 2022-23 fiscal year, the District used $88,781 in commodities, and established a year-end inventory of $11,554 at June 30, 2023. 4. The Medical Access grant passed though the PA Department of Education is reflected as federal source revenue on the basic financial statements; however, pursuant to instructions from the Commonwealth of PA, it is not reported as revenue on the Schedule of Expenditures of Federal Awards: "See Notes to the SEFA for chart/table". 5. Of the $20,366 of expenditures reported for the Title II grant, $20,366 were incurred in the prior year. 6. Of the $102,315 received from the ESSER I grant in the 2022-23 fiscal year, $63,233 was not spent within the grant period and is due back to the Pennsylvania Commission on Crime and Delinquency as of June 30, 2023. 7. The amount of ARP ESSER Learning Loss revenue reported on the prior year’s Schedule of Expenditures of Federal Awards was overstated by $10,500. The opening accrual on 7/1/22 has been reduced by $10,500 to account for the changes on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. 8. In the prior year, the District received $1,059 from the ARP ESSER Homeless Children and Youth grant that was deferred; however, it was not included on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. 9. Of the $1,116 of expenditures reported for the IDEA Section 619 grant, $1,116 were incurred in the prior year. 10. The $962 reported in the Accrued or (Deferred) column at June 30, 2022 for the Title III program was not received during the 2022-23 fiscal year, and is no longer receivable as of June 30, 2023. The opening accrual on 7/1/2022 has been reduced by $962 to account for the changes on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. 11. The $707 reported in the Accrued or (Deferred) column at June 30, 2022 for the Title III program was not received during the 2022-23 fiscal year, and is no longer receivable as of June 30, 2023. The opening accrual on 7/1/2022 has been reduced by $707 to account for the changes to the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022.

Finding Details

Criteria: The principles for determining allowability of costs charged to federal grants are outlined in the federal regulations, 2CFR Part 200, Subpart E. Condition: The District recorded 100% of retirement expenditures for employees when the District receives reimbursement from the State for approximately 50% of its retirement expenditures. Cause: The District failed to back out the portion of the retirement expenditures that are reimbursed or subsidized by the State. Effect: The District has received reimbursement via state and federal subsidies for the same retirement expenditures. Context: We calculated the allowable retirement expenditures by multiplying the gross salaries recorded to the federal program(s) by the PSERS employer rate and then deducted 50% for the amount reimbursed by the State and compared that total to the amount of actual retirement expenditures recorded to the federal program(s). Recommendation: We have advised management to implement procedures to ensure only the unreimbursed retirement expenditures are allocated to federal programs. Views of Responsible Officials: The District agrees with the finding and will develop procedures to ensure only 50% of retirement expenditures are recorded to federal programs. Audit Follow Up Procedures: We performed follow-up procedures on prior year findings, as reported in the Schedule of Prior Year Findings.
Criteria: The principles for determining allowability of costs charged to federal grants are outlined in the federal regulations, 2CFR Part 200, Subpart E. Condition: The District recorded 100% of retirement expenditures for employees when the District receives reimbursement from the State for approximately 50% of its retirement expenditures. Cause: The District failed to back out the portion of the retirement expenditures that are reimbursed or subsidized by the State. Effect: The District has received reimbursement via state and federal subsidies for the same retirement expenditures. Context: We calculated the allowable retirement expenditures by multiplying the gross salaries recorded to the federal program(s) by the PSERS employer rate and then deducted 50% for the amount reimbursed by the State and compared that total to the amount of actual retirement expenditures recorded to the federal program(s). Recommendation: We have advised management to implement procedures to ensure only the unreimbursed retirement expenditures are allocated to federal programs. Views of Responsible Officials: The District agrees with the finding and will develop procedures to ensure only 50% of retirement expenditures are recorded to federal programs. Audit Follow Up Procedures: We performed follow-up procedures on prior year findings, as reported in the Schedule of Prior Year Findings.