FAC Explorer

Audit 14048

FY End
2023-06-30
Total Expended
$2.46M
Findings
10
Programs
9
Organization: Palmerton Area School District (PA)
Year: 2023 Accepted: 2024-01-29
Auditor: Gorman & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
10386 2023-001 Significant Deficiency - L
10387 2023-001 Significant Deficiency - L
10388 2023-001 Significant Deficiency - L
10389 2023-002 - - B
10390 2023-002 - - B
586828 2023-001 Significant Deficiency - L
586829 2023-001 Significant Deficiency - L
586830 2023-001 Significant Deficiency - L
586831 2023-002 - - B
586832 2023-002 - - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $332,789 - 0
10.555 National School Lunch Program $112,771 - 0
10.553 School Breakfast Program $109,202 - 0
84.367 Improving Teacher Quality State Grants $54,037 - 0
84.424 Student Support and Academic Enrichment Program $23,096 - 0
84.173 Special Education_preschool Grants $6,050 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0
84.425 Education Stabilization Fund $0 Yes 0
84.027 Special Education_grants to States $0 - 0

Contacts

Name Title Type
MSMVJ7XWUFA4 Ryan Kish Auditee
6108267101 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 accounting principles, generally accepted in the United States of America. 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 School 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 Palmerton Area 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 Palmerton Area School District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Palmerton Area 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 accounting principles, generally accepted in the United States of America. 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 School 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 accounting principles, generally accepted in the United States of America.
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 accounting principles, generally accepted in the United States of America. 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 School did not use the 10% de minimis cost rate. The District recognized 4.5% of its total general fund revenue in federal awards, and 57.1% 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 accounting principles, generally accepted in the United States of America. 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 School 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 School 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 accounting principles, generally accepted in the United States of America. 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 School did not use the 10% de minimis cost rate. 1. The federal awards passed through the Carbon - Lehigh 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 total below: "See Notes to the SEFA for chart/table". 3. The District received non-monetary assistance from the U.S. Department of Agriculture of $116,877 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 $112,771 in commodities and established a year-end inventory of $8,016 at June 30, 2023. 4. The Transportation Access passed through the Carbon-Lehigh I.U. is reflected as federal local 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".

Finding Details

Finding 2023-001
Criteria: The District is required to submit a Final Expenditure Report to the State within 30 days of all funds being expended. Condition: The District failed to submit the Final Expenditure Reports for Title I, Title II, and Title IV for the 21-22 grant year in a timely manner and is showing receivables on the SEFA as of June 30, 2023. Cause: Due to staff turnover, the final expenditure reports were not submitted in a timely fashion. Effect: The District receives funding based on timely and accurate reporting to the State. Failure to file reports in a timely manner can delay or cancel funding. Context: We questioned the District on why there were still receivables on the SEFA and it was explained to us the Final Expenditure Reports were not filed in a timely manner. Recommendation: We have advised management to implement procedures to make sure all reporting requirements are met in a timely fashion to maintain federal compliance and ensure timely funding. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop procedures to ensure reports are filed in a timely manner.
Finding 2023-001
Criteria: The District is required to submit a Final Expenditure Report to the State within 30 days of all funds being expended. Condition: The District failed to submit the Final Expenditure Reports for Title I, Title II, and Title IV for the 21-22 grant year in a timely manner and is showing receivables on the SEFA as of June 30, 2023. Cause: Due to staff turnover, the final expenditure reports were not submitted in a timely fashion. Effect: The District receives funding based on timely and accurate reporting to the State. Failure to file reports in a timely manner can delay or cancel funding. Context: We questioned the District on why there were still receivables on the SEFA and it was explained to us the Final Expenditure Reports were not filed in a timely manner. Recommendation: We have advised management to implement procedures to make sure all reporting requirements are met in a timely fashion to maintain federal compliance and ensure timely funding. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop procedures to ensure reports are filed in a timely manner.
Finding 2023-001
Criteria: The District is required to submit a Final Expenditure Report to the State within 30 days of all funds being expended. Condition: The District failed to submit the Final Expenditure Reports for Title I, Title II, and Title IV for the 21-22 grant year in a timely manner and is showing receivables on the SEFA as of June 30, 2023. Cause: Due to staff turnover, the final expenditure reports were not submitted in a timely fashion. Effect: The District receives funding based on timely and accurate reporting to the State. Failure to file reports in a timely manner can delay or cancel funding. Context: We questioned the District on why there were still receivables on the SEFA and it was explained to us the Final Expenditure Reports were not filed in a timely manner. Recommendation: We have advised management to implement procedures to make sure all reporting requirements are met in a timely fashion to maintain federal compliance and ensure timely funding. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop procedures to ensure reports are filed in a timely manner.
Finding 2023-002
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 resolve the current noncompliance finding by any means necessary that is in compliance with federal regulations. Views of Responsible Officials and Planned Corrective Actions: 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 did not perform any follow-up procedures since there were no findings from the previous year.
Finding 2023-002
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 resolve the current noncompliance finding by any means necessary that is in compliance with federal regulations. Views of Responsible Officials and Planned Corrective Actions: 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 did not perform any follow-up procedures since there were no findings from the previous year.
Finding 2023-001
Criteria: The District is required to submit a Final Expenditure Report to the State within 30 days of all funds being expended. Condition: The District failed to submit the Final Expenditure Reports for Title I, Title II, and Title IV for the 21-22 grant year in a timely manner and is showing receivables on the SEFA as of June 30, 2023. Cause: Due to staff turnover, the final expenditure reports were not submitted in a timely fashion. Effect: The District receives funding based on timely and accurate reporting to the State. Failure to file reports in a timely manner can delay or cancel funding. Context: We questioned the District on why there were still receivables on the SEFA and it was explained to us the Final Expenditure Reports were not filed in a timely manner. Recommendation: We have advised management to implement procedures to make sure all reporting requirements are met in a timely fashion to maintain federal compliance and ensure timely funding. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop procedures to ensure reports are filed in a timely manner.
Finding 2023-001
Criteria: The District is required to submit a Final Expenditure Report to the State within 30 days of all funds being expended. Condition: The District failed to submit the Final Expenditure Reports for Title I, Title II, and Title IV for the 21-22 grant year in a timely manner and is showing receivables on the SEFA as of June 30, 2023. Cause: Due to staff turnover, the final expenditure reports were not submitted in a timely fashion. Effect: The District receives funding based on timely and accurate reporting to the State. Failure to file reports in a timely manner can delay or cancel funding. Context: We questioned the District on why there were still receivables on the SEFA and it was explained to us the Final Expenditure Reports were not filed in a timely manner. Recommendation: We have advised management to implement procedures to make sure all reporting requirements are met in a timely fashion to maintain federal compliance and ensure timely funding. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop procedures to ensure reports are filed in a timely manner.
Finding 2023-001
Criteria: The District is required to submit a Final Expenditure Report to the State within 30 days of all funds being expended. Condition: The District failed to submit the Final Expenditure Reports for Title I, Title II, and Title IV for the 21-22 grant year in a timely manner and is showing receivables on the SEFA as of June 30, 2023. Cause: Due to staff turnover, the final expenditure reports were not submitted in a timely fashion. Effect: The District receives funding based on timely and accurate reporting to the State. Failure to file reports in a timely manner can delay or cancel funding. Context: We questioned the District on why there were still receivables on the SEFA and it was explained to us the Final Expenditure Reports were not filed in a timely manner. Recommendation: We have advised management to implement procedures to make sure all reporting requirements are met in a timely fashion to maintain federal compliance and ensure timely funding. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop procedures to ensure reports are filed in a timely manner.
Finding 2023-002
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 resolve the current noncompliance finding by any means necessary that is in compliance with federal regulations. Views of Responsible Officials and Planned Corrective Actions: 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 did not perform any follow-up procedures since there were no findings from the previous year.
Finding 2023-002
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 resolve the current noncompliance finding by any means necessary that is in compliance with federal regulations. Views of Responsible Officials and Planned Corrective Actions: 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 did not perform any follow-up procedures since there were no findings from the previous year.