FAC Explorer

Audit 23686

FY End
2022-06-30
Total Expended
$2.73M
Findings
4
Programs
9
Organization: Central Regional Education Association (ND)
Year: 2022 Accepted: 2023-09-25
Auditor: Brady Martz & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20148 2022-004 - - L
20149 2022-005 Significant Deficiency - M
596590 2022-004 - - L
596591 2022-005 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.14M Yes 2
84.287 Twenty-First Century Community Learning Centers $820,472 - 0
16.839 Stop School Violence $391,169 - 0
84.215 Fund for the Improvement of Education $112,289 - 0
10.558 Child and Adult Care Food Program $99,291 - 0
84.425 Education Stabilization Fund $81,643 - 0
45.025 Promotion of the Arts_partnership Agreements $61,000 - 0
84.365 English Language Acquisition State Grants $22,852 - 0
93.994 Maternal and Child Health Services Block Grant to the States $7,000 - 0

Contacts

Name Title Type
DFS5WKMDXLN8 Luke Schaefer Auditee
7014150455 Daryl Heizelman Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (the Schedule) are reported on the modified cash 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Association has elected to not to use the 10-percent de minimus indirect cost rate as allowedunder the uniform guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Central Regional Education Association under programs of the federal government for the year ended June 30, 2022. The information in this 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 Central Regional Education Association, it is not intended to and does not present the financial statements of the governmental activities, each major fund, and remaining fund information ofCentral Regional Education Association.
Title: NOTE 4 RECONCILIATION OF FEDERAL GRANT REVENUE TO THE SEFA Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (the Schedule) are reported on the modified cash 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Association has elected to not to use the 10-percent de minimus indirect cost rate as allowedunder the uniform guidance. Reconciliation of federal grant revenue to the SEFA is as follows:Total federal grant revenue $ 2,277,444Adjustments for modified cash basisto accrual basis:Expenses from the prior year, receivedin the current year. ( 29,191)Expenses in the current year notreceived until subsequent to year end. 486,238Total federal funds for SEFA $ 2,734,491

Finding Details

Finding 2022-004
Reporting Requirements ? Significant Deficiency Criteria: To provide reasonable assurance that the reporting requirement to timely file the annual audited financial statements with the Federal Audit Clearinghouse within nine months of the Association?s year end is met. Condition/Context: The Association?s June 30, 2022 audited financial statements were not filed with the Federal Audit Clearing house within nine months of the Association?s year end. Cause: The Uniform Guidance audit was not completed before the reporting deadline. Effect: Non-compliance with Uniform Guidance reporting requirements. Recommendation: We recommend that the Uniform Guidance audit be completed before the reporting deadline. View of responsible officials and corrective actions: We agree with this finding. We will be more aware of filing deadlines.
Finding 2022-005
Segregation of Duties ? Significant Deficiency Criteria The organization is required to maintain internal controls at a level where underlying support for federal award disbursements can be developed and a determination can be made that the federal awards are getting disbursed properly in accordance with the grant requirements. Condition There is not a system in place for grant disbursement duties to be properly segregated between authorization, custody, record keeping and reconciliation. Cause The organization is subject to size and budget constraints limiting the number of personnel within the grant department. Effect The design of internal control over financial reporting could adversely affect the ability to record, process, summarize and report federal awards in accordance with grant requirements. Recommendation We recommend the organization review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. View of responsible officials and corrective actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Association.
Finding 2022-004
Reporting Requirements ? Significant Deficiency Criteria: To provide reasonable assurance that the reporting requirement to timely file the annual audited financial statements with the Federal Audit Clearinghouse within nine months of the Association?s year end is met. Condition/Context: The Association?s June 30, 2022 audited financial statements were not filed with the Federal Audit Clearing house within nine months of the Association?s year end. Cause: The Uniform Guidance audit was not completed before the reporting deadline. Effect: Non-compliance with Uniform Guidance reporting requirements. Recommendation: We recommend that the Uniform Guidance audit be completed before the reporting deadline. View of responsible officials and corrective actions: We agree with this finding. We will be more aware of filing deadlines.
Finding 2022-005
Segregation of Duties ? Significant Deficiency Criteria The organization is required to maintain internal controls at a level where underlying support for federal award disbursements can be developed and a determination can be made that the federal awards are getting disbursed properly in accordance with the grant requirements. Condition There is not a system in place for grant disbursement duties to be properly segregated between authorization, custody, record keeping and reconciliation. Cause The organization is subject to size and budget constraints limiting the number of personnel within the grant department. Effect The design of internal control over financial reporting could adversely affect the ability to record, process, summarize and report federal awards in accordance with grant requirements. Recommendation We recommend the organization review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. View of responsible officials and corrective actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Association.