FAC Explorer

Audit 20899

FY End
2022-06-30
Total Expended
$3.26M
Findings
2
Programs
9
Organization: Blanchester Local School District (OH)
Year: 2022 Accepted: 2023-06-13
Auditor: Ohio Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22380 2022-003 - - AB
598822 2022-003 - - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $682,697 Yes 0
84.010 Title I Grants to Local Educational Agencies $478,893 - 1
84.027 Special Education_grants to States $365,195 - 0
21.019 Coronavirus Relief Fund $353,694 - 0
10.553 School Breakfast Program $212,457 Yes 0
10.555 National School Lunch Program $69,777 Yes 0
84.424 Student Support and Academic Enrichment Program $28,659 - 0
84.173 Special Education_preschool Grants $12,622 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
FRHNEDKN7HA5 Alleyn Unversaw Auditee
5137833523 Cristal Jones Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards, wherein certain types of expenditures may or may not be allowable or may belimited as to reimbursement. 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 (the Schedule) includes the federal award activity of Blanchester Local School District (the District) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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 flowsof the District.
Title: Child Nutrition Cluster Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards, wherein certain types of expenditures may or may not be allowable or may belimited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the District assumes it expends federal monies first.
Title: Food Donation Program Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards, wherein certain types of expenditures may or may not be allowable or may belimited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District reports commodities consumed on the Schedule at the fair value. The District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.
Title: Transfers between federal programs Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards, wherein certain types of expenditures may or may not be allowable or may belimited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During fiscal year 2022, the District made allowable transfers of $28,349 from the Title II-A Improving Teacher Quality (84.367) program to the Title I (84.010) program. The Schedule shows the District spent $0 on Title II-A Improving Teacher Quality program. The District has a balance of $32,262, that was not transferred to Title I per the approved allocation. The amounts transferred to the Title I program are included as Title I expenditures when disbursed.

Finding Details

Finding 2022-003
2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.403 (g) which provides that except where otherwise authorized by statute, costs must be adequately documented in order to be allowable under Federal awards. Further, 2 C.F.R ? 200.303(a) provides that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The School District has established approved rates of pay for employees. Further, timesheets and/or single funded certificates was used to document time and effort of personnel relating to Title I activities. However, in the current year the employees were to be moved from the Title I program and did not complete timesheets/single funded certificates, which resulted in an estimated amount of $127,443 in Title I expenditures that could not be supported as related to Title I activities. As such, the $127,443 from the Title I Fund AL # 84.010 is considered a questioned cost. Failure to make corrections to employess and maintain the appropriate time and effort documentation resulted in questioned costs and can result in reduced future federal funding or the requirement to repay the Ohio Department of Education. The Treasurer should ensure all employees charging salaries and benefits to federal grants are allowable under the current year program and maintain the appropriate documentation supporting the time spent on the grant, in accordance with the School District?s policy.
Finding 2022-003
2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.403 (g) which provides that except where otherwise authorized by statute, costs must be adequately documented in order to be allowable under Federal awards. Further, 2 C.F.R ? 200.303(a) provides that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The School District has established approved rates of pay for employees. Further, timesheets and/or single funded certificates was used to document time and effort of personnel relating to Title I activities. However, in the current year the employees were to be moved from the Title I program and did not complete timesheets/single funded certificates, which resulted in an estimated amount of $127,443 in Title I expenditures that could not be supported as related to Title I activities. As such, the $127,443 from the Title I Fund AL # 84.010 is considered a questioned cost. Failure to make corrections to employess and maintain the appropriate time and effort documentation resulted in questioned costs and can result in reduced future federal funding or the requirement to repay the Ohio Department of Education. The Treasurer should ensure all employees charging salaries and benefits to federal grants are allowable under the current year program and maintain the appropriate documentation supporting the time spent on the grant, in accordance with the School District?s policy.