FAC Explorer

Audit 15671

FY End
2023-06-30
Total Expended
$31.99M
Findings
2
Programs
21
Organization: El Paso County School District Two - Harrison (CO)
Year: 2023 Accepted: 2024-02-05
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11846 2023-005 Material Weakness - L
588288 2023-005 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $13.11M Yes 0
84.010 Title I Grants to Local Educational Agencies $4.08M Yes 1
84.027 Special Education_grants to States $2.31M - 0
10.553 School Breakfast Program $783,376 - 0
84.367 Improving Teacher Quality State Grants $475,558 - 0
10.555 National School Lunch Program - Commodities $431,955 - 0
84.371 Striving Readers $350,255 - 0
84.242 Public Charter School Grant $245,634 - 0
84.027 Covid-19 - Special Education_grants to States $202,433 - 0
84.041 Impact Aid $179,662 - 0
84.048 Career and Technical Education -- Basic Grants to States $143,530 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $136,062 - 0
84.365 Mathematics and Science Partnerships $115,411 - 0
84.173 Special Education_preschool Grants $107,243 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $97,281 - 0
12.001 Reserve Office Training Corps (rotc) $60,270 - 0
84.424 Student Support and Academic Enrichment Program $59,515 - 0
10.559 Summer Food Service Program for Children $49,908 - 0
84.173 Covid-19 - Special Education_preschool Grants $25,097 - 0
10.649 Pandemic Ebt Administrative Costs $5,950 - 0
10.665 Schools and Roads - Grants to States $1,936 - 0

Contacts

Name Title Type
N4ZTPM7CJK81 Shelley Becker Auditee
7195792072 Jamie Essenmacher Auditor
No contacts on file

Notes to SEFA

Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of El Paso County School District No. 2 - Harrison (the “District”) under programs of the federal government for the year ended June 30, 2023. The information in the 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 (the “Uniform Guidance”). El Paso County School District No. 2 - Harrison budgeted approximately $11,200,000 of federal funds for the 2023-2023 fiscal year to component units, but actual component expenditures of approximately $4,300,000 are reported in the schedule of expenditures of federal awards for the year ended June 30, 2023, as those were expenditures incurred by the component units during the year. The remaining amounts will be reported on the District's SEFA in the subsequent year when expended by the component units. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District. Expenditures reported in the Schedule are reported on the same basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement and frequently asked questions as outlined in the Compliance Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available, and no subrecipient payments were identified at June 30, 2023. The District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance The value of the noncash assistance, commodities donated to the District by the U.S. Department of Agriculture (USDA), was determined in accordance with the provisions of the Uniform Guidance and is reported on the schedule of expenditures of federal awards.

Finding Details

Finding 2023-005
Finding Type- Material Weakness Criteria – Secondary reviews and approval processes surrounding Title I cash management reporting and the request for reimbursement submitted to drawdown funds for this grant are a vital part of internal control that reduce the risk of administrative errors and inaccuracy of reporting Title I expenditures. Condition- - During the testing of internal controls surrounding the Title I program reporting, it was identified that review of Title 1 expenditures, final expenditure reporting, and reimbursement requests was not properly taking place. Context- The District is required to submit reimbursement requests to the Colorado Department of Education for Title I expenditures. In addition, once grants are fully spent, the District is required to complete final expenditure reports. These requests are how the District spends down Title I funds that are allocated to the District from the Colorado Department of Education. The District did not perform sufficient or document review over the reimbursement requests and final expenditure reports. Cause and Effect- Due to the lack overall review of reimbursement requests and final expenditure reports, the District had recorded approximately $343,000 in indirect costs in the general ledger related to Title I funds that was never submitted to the State for reimbursement. These costs were ultimately reclassified out of Title 1 in the general ledger as management determined not to resubmit the request for reimbursement for the year ended June 30, 2023. Recommendation -The District should implement procedures to review and document the approval of the reimbursement requests, as well as the final expenditure reports, to ensure accuracy of amounts requested for the grants are in accordance with the general ledger and budgeted amounts. View of Responsible Officials and Corrective Action Plan- While the District performs a secondary review on an AFR before submission, the District is lacking the documentation that such secondary review occurred. The District will be putting into place official documentation that a secondary review has occurred and is appropriately reviewed and signed off by the director of finance.
Finding 2023-005
Finding Type- Material Weakness Criteria – Secondary reviews and approval processes surrounding Title I cash management reporting and the request for reimbursement submitted to drawdown funds for this grant are a vital part of internal control that reduce the risk of administrative errors and inaccuracy of reporting Title I expenditures. Condition- - During the testing of internal controls surrounding the Title I program reporting, it was identified that review of Title 1 expenditures, final expenditure reporting, and reimbursement requests was not properly taking place. Context- The District is required to submit reimbursement requests to the Colorado Department of Education for Title I expenditures. In addition, once grants are fully spent, the District is required to complete final expenditure reports. These requests are how the District spends down Title I funds that are allocated to the District from the Colorado Department of Education. The District did not perform sufficient or document review over the reimbursement requests and final expenditure reports. Cause and Effect- Due to the lack overall review of reimbursement requests and final expenditure reports, the District had recorded approximately $343,000 in indirect costs in the general ledger related to Title I funds that was never submitted to the State for reimbursement. These costs were ultimately reclassified out of Title 1 in the general ledger as management determined not to resubmit the request for reimbursement for the year ended June 30, 2023. Recommendation -The District should implement procedures to review and document the approval of the reimbursement requests, as well as the final expenditure reports, to ensure accuracy of amounts requested for the grants are in accordance with the general ledger and budgeted amounts. View of Responsible Officials and Corrective Action Plan- While the District performs a secondary review on an AFR before submission, the District is lacking the documentation that such secondary review occurred. The District will be putting into place official documentation that a secondary review has occurred and is appropriately reviewed and signed off by the director of finance.