FAC Explorer

Audit 13168

FY End
2023-08-31
Total Expended
$1.06M
Findings
4
Programs
11
Organization: Crockett County Consolidated Common School District (TX)
Year: 2023 Accepted: 2024-01-23
Auditor: Eckert & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9519 2023-002 Material Weakness - AB
9520 2023-002 Material Weakness - AB
585961 2023-002 Material Weakness - AB
585962 2023-002 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund: Covid-19 Arp Esser III Grant $328,353 Yes 1
84.425 Education Stabilization Fund: Covid-19 Crrsa Esser II Grant $220,758 Yes 1
10.555 National School Lunch Program - Cash Assistance $193,110 - 0
10.553 School Breakfast Program - Cash Assistance $62,701 - 0
10.555 National School Lunch Program - Non-Cash Assistance $26,512 - 0
84.010 Esea, Title I, 1003 (a) - School Improvement Grant $24,134 - 0
84.010 Esea, Title I, Part A - Improving Basic Programs $11,874 - 0
84.424 Esea, Title Iv, Part A , Subpart 1 $8,737 - 0
84.358 Small, Rural School Achievement Program $7,180 - 0
84.367 Esea, Title Ii, Part A - Supporting Effective Instruction $2,583 - 0
93.323 Covid-19 School Health Support Grant $219 - 0

Contacts

Name Title Type
FBNDHHRXV964 Leigh Ann McCain Auditee
3253925177 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 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.

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 bank accounts are reconciled, 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 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, bank accounts should be reconciled, expenditures should be monitored to assure that they are within the budget and any necessary corrections should be made in a timely manner. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger, that bank accounts are reconciled, that expenditures are compared the budget and that adjustments are made as 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 bank accounts are reconciled, 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 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, bank accounts should be reconciled, expenditures should be monitored to assure that they are within the budget and any necessary corrections should be made in a timely manner. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger, that bank accounts are reconciled, that expenditures are compared the budget and that adjustments are made as 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 bank accounts are reconciled, 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 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, bank accounts should be reconciled, expenditures should be monitored to assure that they are within the budget and any necessary corrections should be made in a timely manner. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger, that bank accounts are reconciled, that expenditures are compared the budget and that adjustments are made as 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 bank accounts are reconciled, 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 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, bank accounts should be reconciled, expenditures should be monitored to assure that they are within the budget and any necessary corrections should be made in a timely manner. Management's Response: The District will implement procedures to ensure that the District’s personnel review the general ledger, that bank accounts are reconciled, that expenditures are compared the budget and that adjustments are made as needed. Additional staff or outside assistance will be engaged as needed.