Audit 214176

FY End
2022-06-30
Total Expended
$1.18M
Findings
10
Programs
10
Organization: Usd 102 Cimarron-Ensign Schools (KS)
Year: 2022 Accepted: 2023-04-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
236257 2022-001 Significant Deficiency - F
236258 2022-002 Significant Deficiency - N
236259 2022-003 Significant Deficiency Yes L
236260 2022-003 Significant Deficiency Yes L
236261 2022-003 Significant Deficiency Yes L
812699 2022-001 Significant Deficiency - F
812700 2022-002 Significant Deficiency - N
812701 2022-003 Significant Deficiency Yes L
812702 2022-003 Significant Deficiency Yes L
812703 2022-003 Significant Deficiency Yes L

Contacts

Name Title Type
PGGZNU5AXGZ8 Mike Waters Auditee
6208557743 Patrick Friess Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Unified School District No. 102 under programs of the federal government for the year ended June 30, 2022. 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 (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 assets, or cash flows of the District. The Schedule is presented using a regulatory basis of accounting prescribed by the Kansas Municipal Audit and Accounting Guide (as described in Note A to the financial statement), which is the same basis of accounting as the financial statement accompanying this schedule.Expenditures reported on the Schedule are prepared using the regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures include disbursements, accounts payable, and encumbrances, with disbursements being adjusted for prior years accounts payable and encumbrances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

U.S. DEPARTMENT OF EDUCATION Significant Deficiency 2022-01: Education and Secondary School Emergency Relief Fund ? CFDA #84.425D and #84.425U Grant Period: Year Ended June 30, 2022 Condition and Context: The District purchased equipment greater than the Uniform Guidance capitalization threshold and failed to complete a listing of equipment containing all pertinent data. The lack of compliance did not result in any material noncompliance, fraud, or abuse with respect to the major program. Criteria: The Uniform Guidance requires entities to follow equipment procedures set out at 2 CFR sections 200.313(c) through (e) and real property procedures set out at 2 CFR section 200.311(b). Entities must retain a listing of equipment greater than or equal to the capitalization policy of either the entity or Uniform Guidance with relevant data including, a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, a and any ultimate disposition data including the date of disposal and sales price of the property. Property records must be maintained and include the name, part number and description, and other elements as necessary and required in accordance with the terms and conditions of the contract, quantity received, unit acquisition cost, unique-item identifier, accountable contract number, location, disposition, and posting reference and date of transaction. Cause: The District was unaware of the requirements set out by Uniform Guidance. Effect: An important component of equipment policies is retaining information to ensure that the award is used for authorized purposes, complies with the terms and conditions of the award, and achieves performance goals. Without equipment policies, there is a higher risk of noncompliance with program requirements. Recommendation: Management should determine procedures for equipment purchases and apply them to all equipment purchases equal to or exceeding the threshold to comply with the Uniform Guidance. Grantee Response: Management agrees with the finding and recommendation. The District will establish policies and procedures for future grant awards to comply with Uniform Guidance requirements.
U.S. DEPARTMENT OF EDUCATION Significant Deficiency 2022-02: Education and Secondary School Emergency Relief Fund ? CFDA #84.425D and #84.425U Grant Period: Year Ended June 30, 2022 Condition and Context: The District entered into various construction contracts which did not meet the standards set out by Uniform Guidance for wage rate requirements. The lack of compliance did not result in any material noncompliance, fraud, or abuse with respect to the major program. Criteria: The Uniform Guidance requires entities to include in their construction contracts which exceed $2,000 that all laborers and mechanics employed by contractors or subcontractors must be paid wages not less than those established for the locality of the project also know as prevailing wage rates set by the Department of Labor. Cause: The District was unaware of the requirements set out by Uniform Guidance. Effect: An important component of wage rate requirements is to ensure labors and mechanics are paid a fair and reasonable wage according to the Department of Labor. Without implementing these policies, there is a higher risk of noncompliance with program requirements. Recommendation: Management should determine which contracts are subject to the prevailing wage rate requirements under Uniform Guidance and establish controls to implement the requirements when necessary. Grantee Response: Management agrees with the finding and recommendation. The District will establish policies and procedures for future grant awards to comply with Uniform Guidance requirements.
U.S. DEPARTMENT OF AGRICULTURE SIGNIFICANT DEFICIENCY 2022-003: Child Nutrition Cluster ? CFDA No. 10.553, 10.555 and 10.559 Grant period: Year Ended June 30, 2022 Condition and Context: Per review of the Summer Food Service Program summary sheet for April, the incorrect number of breakfasts was reported. Criteria: The District is required to submit the number of breakfasts and lunches served in order to receive reimbursement for them. Cause: The number of meals entered for reimbursement on the summary sheet was incorrect. Effect: If the correct number of meals is not reported the District will not be reimbursed the correct amount. Recommendation: We recommend that the summary sheets used to compile the request for reimbursement is double checked for accuracy as to the number of meals on the daily count sheets. Grantee Response: We concur with the recommendation. In addition, someone will be reviewing all summary sheets before the request for reimbursement is submitted.
U.S. DEPARTMENT OF AGRICULTURE SIGNIFICANT DEFICIENCY 2022-003: Child Nutrition Cluster ? CFDA No. 10.553, 10.555 and 10.559 Grant period: Year Ended June 30, 2022 Condition and Context: Per review of the Summer Food Service Program summary sheet for April, the incorrect number of breakfasts was reported. Criteria: The District is required to submit the number of breakfasts and lunches served in order to receive reimbursement for them. Cause: The number of meals entered for reimbursement on the summary sheet was incorrect. Effect: If the correct number of meals is not reported the District will not be reimbursed the correct amount. Recommendation: We recommend that the summary sheets used to compile the request for reimbursement is double checked for accuracy as to the number of meals on the daily count sheets. Grantee Response: We concur with the recommendation. In addition, someone will be reviewing all summary sheets before the request for reimbursement is submitted.
U.S. DEPARTMENT OF AGRICULTURE SIGNIFICANT DEFICIENCY 2022-003: Child Nutrition Cluster ? CFDA No. 10.553, 10.555 and 10.559 Grant period: Year Ended June 30, 2022 Condition and Context: Per review of the Summer Food Service Program summary sheet for April, the incorrect number of breakfasts was reported. Criteria: The District is required to submit the number of breakfasts and lunches served in order to receive reimbursement for them. Cause: The number of meals entered for reimbursement on the summary sheet was incorrect. Effect: If the correct number of meals is not reported the District will not be reimbursed the correct amount. Recommendation: We recommend that the summary sheets used to compile the request for reimbursement is double checked for accuracy as to the number of meals on the daily count sheets. Grantee Response: We concur with the recommendation. In addition, someone will be reviewing all summary sheets before the request for reimbursement is submitted.
U.S. DEPARTMENT OF EDUCATION Significant Deficiency 2022-01: Education and Secondary School Emergency Relief Fund ? CFDA #84.425D and #84.425U Grant Period: Year Ended June 30, 2022 Condition and Context: The District purchased equipment greater than the Uniform Guidance capitalization threshold and failed to complete a listing of equipment containing all pertinent data. The lack of compliance did not result in any material noncompliance, fraud, or abuse with respect to the major program. Criteria: The Uniform Guidance requires entities to follow equipment procedures set out at 2 CFR sections 200.313(c) through (e) and real property procedures set out at 2 CFR section 200.311(b). Entities must retain a listing of equipment greater than or equal to the capitalization policy of either the entity or Uniform Guidance with relevant data including, a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, a and any ultimate disposition data including the date of disposal and sales price of the property. Property records must be maintained and include the name, part number and description, and other elements as necessary and required in accordance with the terms and conditions of the contract, quantity received, unit acquisition cost, unique-item identifier, accountable contract number, location, disposition, and posting reference and date of transaction. Cause: The District was unaware of the requirements set out by Uniform Guidance. Effect: An important component of equipment policies is retaining information to ensure that the award is used for authorized purposes, complies with the terms and conditions of the award, and achieves performance goals. Without equipment policies, there is a higher risk of noncompliance with program requirements. Recommendation: Management should determine procedures for equipment purchases and apply them to all equipment purchases equal to or exceeding the threshold to comply with the Uniform Guidance. Grantee Response: Management agrees with the finding and recommendation. The District will establish policies and procedures for future grant awards to comply with Uniform Guidance requirements.
U.S. DEPARTMENT OF EDUCATION Significant Deficiency 2022-02: Education and Secondary School Emergency Relief Fund ? CFDA #84.425D and #84.425U Grant Period: Year Ended June 30, 2022 Condition and Context: The District entered into various construction contracts which did not meet the standards set out by Uniform Guidance for wage rate requirements. The lack of compliance did not result in any material noncompliance, fraud, or abuse with respect to the major program. Criteria: The Uniform Guidance requires entities to include in their construction contracts which exceed $2,000 that all laborers and mechanics employed by contractors or subcontractors must be paid wages not less than those established for the locality of the project also know as prevailing wage rates set by the Department of Labor. Cause: The District was unaware of the requirements set out by Uniform Guidance. Effect: An important component of wage rate requirements is to ensure labors and mechanics are paid a fair and reasonable wage according to the Department of Labor. Without implementing these policies, there is a higher risk of noncompliance with program requirements. Recommendation: Management should determine which contracts are subject to the prevailing wage rate requirements under Uniform Guidance and establish controls to implement the requirements when necessary. Grantee Response: Management agrees with the finding and recommendation. The District will establish policies and procedures for future grant awards to comply with Uniform Guidance requirements.
U.S. DEPARTMENT OF AGRICULTURE SIGNIFICANT DEFICIENCY 2022-003: Child Nutrition Cluster ? CFDA No. 10.553, 10.555 and 10.559 Grant period: Year Ended June 30, 2022 Condition and Context: Per review of the Summer Food Service Program summary sheet for April, the incorrect number of breakfasts was reported. Criteria: The District is required to submit the number of breakfasts and lunches served in order to receive reimbursement for them. Cause: The number of meals entered for reimbursement on the summary sheet was incorrect. Effect: If the correct number of meals is not reported the District will not be reimbursed the correct amount. Recommendation: We recommend that the summary sheets used to compile the request for reimbursement is double checked for accuracy as to the number of meals on the daily count sheets. Grantee Response: We concur with the recommendation. In addition, someone will be reviewing all summary sheets before the request for reimbursement is submitted.
U.S. DEPARTMENT OF AGRICULTURE SIGNIFICANT DEFICIENCY 2022-003: Child Nutrition Cluster ? CFDA No. 10.553, 10.555 and 10.559 Grant period: Year Ended June 30, 2022 Condition and Context: Per review of the Summer Food Service Program summary sheet for April, the incorrect number of breakfasts was reported. Criteria: The District is required to submit the number of breakfasts and lunches served in order to receive reimbursement for them. Cause: The number of meals entered for reimbursement on the summary sheet was incorrect. Effect: If the correct number of meals is not reported the District will not be reimbursed the correct amount. Recommendation: We recommend that the summary sheets used to compile the request for reimbursement is double checked for accuracy as to the number of meals on the daily count sheets. Grantee Response: We concur with the recommendation. In addition, someone will be reviewing all summary sheets before the request for reimbursement is submitted.
U.S. DEPARTMENT OF AGRICULTURE SIGNIFICANT DEFICIENCY 2022-003: Child Nutrition Cluster ? CFDA No. 10.553, 10.555 and 10.559 Grant period: Year Ended June 30, 2022 Condition and Context: Per review of the Summer Food Service Program summary sheet for April, the incorrect number of breakfasts was reported. Criteria: The District is required to submit the number of breakfasts and lunches served in order to receive reimbursement for them. Cause: The number of meals entered for reimbursement on the summary sheet was incorrect. Effect: If the correct number of meals is not reported the District will not be reimbursed the correct amount. Recommendation: We recommend that the summary sheets used to compile the request for reimbursement is double checked for accuracy as to the number of meals on the daily count sheets. Grantee Response: We concur with the recommendation. In addition, someone will be reviewing all summary sheets before the request for reimbursement is submitted.