Audit 16323

FY End
2022-06-30
Total Expended
$20.55M
Findings
10
Programs
16
Organization: Lyon County School District (NV)
Year: 2022 Accepted: 2023-09-12

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
12198 2022-003 Significant Deficiency - P
12199 2022-003 Significant Deficiency - P
12200 2022-003 Significant Deficiency - P
12201 2022-002 Material Weakness - L
12202 2022-003 Significant Deficiency - P
588640 2022-003 Significant Deficiency - P
588641 2022-003 Significant Deficiency - P
588642 2022-003 Significant Deficiency - P
588643 2022-002 Material Weakness - L
588644 2022-003 Significant Deficiency - P

Contacts

Name Title Type
XUJLNWWA7NK3 Kyle Rodriguez Auditee
7754636800 David Silva Auditor
No contacts on file

Notes to SEFA

Title: REPORTING ENTITY Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The amounts shown as expenditures of CFDA #10.555 National School Lunch Program Commodities represents the fair value of commodity food received by the District for the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards presents the expenditure activity of all federal award programs of the Lyon County School District (the District) for the year ended June 30, 2022. The Districts reporting entity is defined in Note 1 to its basic financial statements. All expenditures of federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the Schedule of Expenditures of Federal Awards.

Finding Details

Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.
Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.
Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.
Finding #2022-2 ? Material Weakness ? Requests for Reimbursement (RFR) U.S. DEPARTMENT OF EDUCATION Passed through the Nevada Department of Education ARP ESSER III ? CFDA #84.425U Grant Period: 7/1/20 through 9/30/24 Compliance Requirement: L (Reporting) Condition: An accounting error occurred related to the preparation of the District?s January 26, 2023 Request for Reimbursement (RFR). This error consisted of the duplication of expenses totaling $398,578, which resulted in an excess reimbursement to the District of that amount on March 9, 2023. Criteria: Costs submitted for reimbursement must be in accordance with generally accepted accounting principles (GAAP); be accorded consistent treatment; and, be adequately documented. Cause: While procedures exist for supervisory approval of the District?s submission of Requests for Reimbursement (RFR), the turnover in key positions resulted in difficulties preparing timely and accurate RFRs. Effect: The portion of the reimbursement attributable to the accounting error may be disallowed. Context: The RFR was submitted on January 26, 2023 for expenditures incurred for the period ended June 30, 2022, as follows: Please see Schedule of Findings and Questioned Costs for table. Recommendation: The District should verify the accuracy of all RFRs prior to submission for reimbursement. Additionally, as discussed in Finding 2022-3, the District should comply with the following condition of award: Questioned Cost: $398,578.
Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.
Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.
Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.
Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.
Finding #2022-2 ? Material Weakness ? Requests for Reimbursement (RFR) U.S. DEPARTMENT OF EDUCATION Passed through the Nevada Department of Education ARP ESSER III ? CFDA #84.425U Grant Period: 7/1/20 through 9/30/24 Compliance Requirement: L (Reporting) Condition: An accounting error occurred related to the preparation of the District?s January 26, 2023 Request for Reimbursement (RFR). This error consisted of the duplication of expenses totaling $398,578, which resulted in an excess reimbursement to the District of that amount on March 9, 2023. Criteria: Costs submitted for reimbursement must be in accordance with generally accepted accounting principles (GAAP); be accorded consistent treatment; and, be adequately documented. Cause: While procedures exist for supervisory approval of the District?s submission of Requests for Reimbursement (RFR), the turnover in key positions resulted in difficulties preparing timely and accurate RFRs. Effect: The portion of the reimbursement attributable to the accounting error may be disallowed. Context: The RFR was submitted on January 26, 2023 for expenditures incurred for the period ended June 30, 2022, as follows: Please see Schedule of Findings and Questioned Costs for table. Recommendation: The District should verify the accuracy of all RFRs prior to submission for reimbursement. Additionally, as discussed in Finding 2022-3, the District should comply with the following condition of award: Questioned Cost: $398,578.
Condition: Requests for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of the District?s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: Turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: The District advanced funds from its General Fund to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: See Schedule of Findings and Questioned Costs. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. Questioned Cost: None.