Audit 24330

FY End
2022-06-30
Total Expended
$1.88M
Findings
2
Programs
12
Year: 2022 Accepted: 2022-12-12

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
32915 2022-003 Material Weakness Yes P
609357 2022-003 Material Weakness Yes P

Programs

Contacts

Name Title Type
YH3EB8WFA1Y7 Lan Eberle Auditee
2177737410 Suzanne Steckel Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Brown County Community Unit School District 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Of the federal expenditures presented in the schedule, Brown County Community Unit School District 1 did not provide any federal awards to subrecipients.
Title: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Brown County Community Unit School District 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following amounts were expended in the form of non-cash assistance by Brown County Community Unit School District 1 and should be included in the Schedule of Expenditures of Federal Awards: NON-CASH COMMODITIES (CFDA 10.555) $27,569; OTHER NON-CASH ASSISTANCE- DEPT.OF DEFENSE FRESH FRUITS & VEGETABLES (CFDA 10.555) $26,899. Total non-cash assistance amounts to $54,468.
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Brown County Community Unit School District 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Brown County Community Unit School District 1 did not expend any federal awards for insurance coverage, nor did it have any federal loans or loan guarantees in effect at June 30, 2022. Brown County Community School District 1 did not have federal grants requiring matching expenditures.
Title: Reconciliation of SEFA to Financial Statement Expenditures Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Brown County Community Unit School District 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Total expenditures per SEFA $1,876,864 LESS $54,468 government-donated commodities not reported in the financial statements LESS $535 Medicaid Administrative Assessment of 4% not reported in the financial statements EQUALS $1,821,861 total federal expenditures per the statements of revenues received, expenditures disbursed, other financing sources (uses), and changes in fund balance.

Finding Details

Finding Number: 2022-003. Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in inadequate segregation of duties. Context: The District's accounting function is mainly controlled by one bookkeeper. Effect: The limited number of personnel hinders the overall effectiveness of internal controls. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal controls. Recommendation: The District should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial-related information. Management's Response: The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board about their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost-feasible to hire additional personnel.
Finding Number: 2022-003. Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in inadequate segregation of duties. Context: The District's accounting function is mainly controlled by one bookkeeper. Effect: The limited number of personnel hinders the overall effectiveness of internal controls. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal controls. Recommendation: The District should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial-related information. Management's Response: The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board about their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost-feasible to hire additional personnel.