FAC Explorer

Audit 13163

FY End
2023-08-31
Total Expended
$910,000
Findings
6
Programs
16
Organization: Iraan-Sheffield Collegiate Independent School District (TX)
Year: 2023 Accepted: 2024-01-23
Auditor: Eckert & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9515 2023-002 Material Weakness Yes AB
9516 2023-002 Material Weakness Yes AB
9517 2023-002 Material Weakness Yes AB
585957 2023-002 Material Weakness Yes AB
585958 2023-002 Material Weakness Yes AB
585959 2023-002 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund: Covid-19 Arp Esser III Grant $331,231 Yes 1
84.027 Idea - Part B, Formula $139,306 - 0
10.555 National School Lunch Program - Cash Assistance $106,076 - 0
84.425 Education Stabilization Fund: Covid-19 Crrsa Esser II Grant $80,039 Yes 1
84.010 Esea, Title I, Part A - Improving Basic Programs $60,206 - 0
93.354 Covid-19 Public Health Crisis Response $59,814 - 0
10.553 School Breakfast Program $40,121 - 0
84.358 Rural Education Achievement Program $29,362 - 0
84.173 Idea - Part B, Preschool $15,570 - 0
10.555 National School Lunch Program - Non-Cash Assistance $15,047 - 0
84.367 Esea, Title Ii, Part A - Supporting Effective Instruction $11,530 - 0
17.258 Ccrsm P-Tech Planning and Implementation Loi $8,820 - 0
84.424 Esea, Title Iv, Part A , Subpart 1 $7,000 - 0
84.425 Education Stabilization Fund: Covid-19 Tclas Esser III Grant $4,500 Yes 1
10.649 Covid-19 P-Ebt Administrative Cost Grant - Cash Assistance $628 - 0
84.173 Covid-19 Idea - Part B, Preschool - American Rescue Plan (arp) Act $567 - 0

Contacts

Name Title Type
R1A7J6JM9PQ7 Gary Laramore Auditee
4326392512 Michael E. Oliphant Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The District utilizes the fund types specified in the Texas Education Agency's Financial Accountability System Resource Guide. Federal and state awards generally are accounted for in a Special Revenue Fund, a component of the governmental fund types. A Special Revenue Fund is used to account for resources restricted to, or committed for, specific purposes by a grantor. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental fund types 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 represent increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. 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. The District has a negotiated indirect cost rate and is not eligible to utilize the de minimis indirect cost rate. 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. De Minimis Rate Used: N Rate Explanation: The auditee has a negotiated indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the District under programs of the federal government for the year ended August 31, 2023. The information in this schedule is presented in accordance with the requirements the 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: Reconciliation to Basic Financial Statements Accounting Policies: The District utilizes the fund types specified in the Texas Education Agency's Financial Accountability System Resource Guide. Federal and state awards generally are accounted for in a Special Revenue Fund, a component of the governmental fund types. A Special Revenue Fund is used to account for resources restricted to, or committed for, specific purposes by a grantor. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental fund types 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 represent increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. 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. The District has a negotiated indirect cost rate and is not eligible to utilize the de minimis indirect cost rate. 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. De Minimis Rate Used: N Rate Explanation: The auditee has a negotiated indirect cost rate. See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-002
Criteria: Government Auditing Standards require proper internal control over financial reporting for governmental entities. In an effective control environment the District’s general ledger should be reviewed at least monthly to determine that all funds are complete and in balance, all transactions are properly recorded and supported by documentation, all accounts and related transactions are reasonable as to amount and balance status and all expenditures are within the budget. Condition: The District’s books were not maintained and reviewed on a timely basis. The books contained numerous coding errors, transactions not properly recorded, accounts with incorrect balances and expenditures exceeding the budget. Cause: The District’s personnel were not performing their duties of maintaining the District’s financial records to ensure accuracy and completeness, and a lack of proper oversight by management contributed to this failure. Effect: The general ledger contained numerous errors and did not accurately reflect the District’s finances. Internal control over financial reporting was not effective. Auditor’s Recommendation: The general ledger should be reviewed for completeness and accuracy, and any necessary corrections should be made in a timely manner. Expenditures should be monitored to assure that they are within the budget. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger and make necessary adjustments when needed. Additional staff or outside assistance will be engaged as needed.
Finding 2023-002
Criteria: Government Auditing Standards require proper internal control over financial reporting for governmental entities. In an effective control environment the District’s general ledger should be reviewed at least monthly to determine that all funds are complete and in balance, all transactions are properly recorded and supported by documentation, all accounts and related transactions are reasonable as to amount and balance status and all expenditures are within the budget. Condition: The District’s books were not maintained and reviewed on a timely basis. The books contained numerous coding errors, transactions not properly recorded, accounts with incorrect balances and expenditures exceeding the budget. Cause: The District’s personnel were not performing their duties of maintaining the District’s financial records to ensure accuracy and completeness, and a lack of proper oversight by management contributed to this failure. Effect: The general ledger contained numerous errors and did not accurately reflect the District’s finances. Internal control over financial reporting was not effective. Auditor’s Recommendation: The general ledger should be reviewed for completeness and accuracy, and any necessary corrections should be made in a timely manner. Expenditures should be monitored to assure that they are within the budget. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger and make necessary adjustments when needed. Additional staff or outside assistance will be engaged as needed.
Finding 2023-002
Criteria: Government Auditing Standards require proper internal control over financial reporting for governmental entities. In an effective control environment the District’s general ledger should be reviewed at least monthly to determine that all funds are complete and in balance, all transactions are properly recorded and supported by documentation, all accounts and related transactions are reasonable as to amount and balance status and all expenditures are within the budget. Condition: The District’s books were not maintained and reviewed on a timely basis. The books contained numerous coding errors, transactions not properly recorded, accounts with incorrect balances and expenditures exceeding the budget. Cause: The District’s personnel were not performing their duties of maintaining the District’s financial records to ensure accuracy and completeness, and a lack of proper oversight by management contributed to this failure. Effect: The general ledger contained numerous errors and did not accurately reflect the District’s finances. Internal control over financial reporting was not effective. Auditor’s Recommendation: The general ledger should be reviewed for completeness and accuracy, and any necessary corrections should be made in a timely manner. Expenditures should be monitored to assure that they are within the budget. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger and make necessary adjustments when needed. Additional staff or outside assistance will be engaged as needed.
Finding 2023-002
Criteria: Government Auditing Standards require proper internal control over financial reporting for governmental entities. In an effective control environment the District’s general ledger should be reviewed at least monthly to determine that all funds are complete and in balance, all transactions are properly recorded and supported by documentation, all accounts and related transactions are reasonable as to amount and balance status and all expenditures are within the budget. Condition: The District’s books were not maintained and reviewed on a timely basis. The books contained numerous coding errors, transactions not properly recorded, accounts with incorrect balances and expenditures exceeding the budget. Cause: The District’s personnel were not performing their duties of maintaining the District’s financial records to ensure accuracy and completeness, and a lack of proper oversight by management contributed to this failure. Effect: The general ledger contained numerous errors and did not accurately reflect the District’s finances. Internal control over financial reporting was not effective. Auditor’s Recommendation: The general ledger should be reviewed for completeness and accuracy, and any necessary corrections should be made in a timely manner. Expenditures should be monitored to assure that they are within the budget. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger and make necessary adjustments when needed. Additional staff or outside assistance will be engaged as needed.
Finding 2023-002
Criteria: Government Auditing Standards require proper internal control over financial reporting for governmental entities. In an effective control environment the District’s general ledger should be reviewed at least monthly to determine that all funds are complete and in balance, all transactions are properly recorded and supported by documentation, all accounts and related transactions are reasonable as to amount and balance status and all expenditures are within the budget. Condition: The District’s books were not maintained and reviewed on a timely basis. The books contained numerous coding errors, transactions not properly recorded, accounts with incorrect balances and expenditures exceeding the budget. Cause: The District’s personnel were not performing their duties of maintaining the District’s financial records to ensure accuracy and completeness, and a lack of proper oversight by management contributed to this failure. Effect: The general ledger contained numerous errors and did not accurately reflect the District’s finances. Internal control over financial reporting was not effective. Auditor’s Recommendation: The general ledger should be reviewed for completeness and accuracy, and any necessary corrections should be made in a timely manner. Expenditures should be monitored to assure that they are within the budget. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger and make necessary adjustments when needed. Additional staff or outside assistance will be engaged as needed.
Finding 2023-002
Criteria: Government Auditing Standards require proper internal control over financial reporting for governmental entities. In an effective control environment the District’s general ledger should be reviewed at least monthly to determine that all funds are complete and in balance, all transactions are properly recorded and supported by documentation, all accounts and related transactions are reasonable as to amount and balance status and all expenditures are within the budget. Condition: The District’s books were not maintained and reviewed on a timely basis. The books contained numerous coding errors, transactions not properly recorded, accounts with incorrect balances and expenditures exceeding the budget. Cause: The District’s personnel were not performing their duties of maintaining the District’s financial records to ensure accuracy and completeness, and a lack of proper oversight by management contributed to this failure. Effect: The general ledger contained numerous errors and did not accurately reflect the District’s finances. Internal control over financial reporting was not effective. Auditor’s Recommendation: The general ledger should be reviewed for completeness and accuracy, and any necessary corrections should be made in a timely manner. Expenditures should be monitored to assure that they are within the budget. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger and make necessary adjustments when needed. Additional staff or outside assistance will be engaged as needed.