FAC Explorer

Audit 262547

FY End
2022-06-30
Total Expended
$755,581
Findings
6
Programs
5
Organization: Elysian School (MT)
Year: 2022 Accepted: 2023-03-22
Auditor: Olness & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
264815 2022-004 Material Weakness - P
264816 2022-005 Material Weakness - P
264817 2022-006 - - N
841257 2022-004 Material Weakness - P
841258 2022-005 Material Weakness - P
841259 2022-006 - - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $356,742 Yes 3
10.555 National School Lunch Program $244,858 - 0
84.010 Title I Grants to Local Educational Agencies $96,354 - 0
84.358 Rural Education $0 - 0
10.559 Summer Food Service Program for Children $0 - 0

Contacts

Name Title Type
TTD7FG43J8E5 Laurie Hickethier Auditee
4066564101 Curtis D Wyss Auditor
No contacts on file

Notes to SEFA

Title: DONATED PPE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the government 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 the 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 government, it is not intended to and does not present the financial position or changes in net position of the government.Expenditures reported on the schedule are reported on the modified accrual 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. 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 auditee did not use the de minimis cost rate. The estimated Fair Market Value (FMV) of donated PPE for the year ended June 30, 2022 was $0 (unaudited).
Title: RELATIONSHIP TO THE BASIC FINANCIAL STATEMENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the government 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 the 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 government, it is not intended to and does not present the financial position or changes in net position of the government.Expenditures reported on the schedule are reported on the modified accrual 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. 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 auditee did not use the de minimis cost rate. Federal award revenues are reported in the basic financial statements as federal sources in the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds. The following is a reconciliation of cash receipts on the Schedule of Expenditures of Federal Awards to federal sources reported on the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds.Cash receipts $779,099 Current revenue accrual adjustments 65,509 Prior revenue accrual adjustments (14,655)Commodities (15,083)Federal sources $814,870

Finding Details

Finding 2022-004
SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Effect: Transactions could be mishandled. Cause: There are a limited number of personnel for certain functions. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2022-005
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2022-006
WAGE RATE REQUIREMENTS Criteria: Per the OMB Compliance Supplement, recipients and subrecipients that use ESF funds for minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: The district did not include in its solicitations the appropriate Wage Rate Requirements and did not require the contractor and/or subcontractors to submit weekly certified payrolls. Cause: Responsible officials were unaware of the requirements. Effect: Noncompliance with federal Wage Rate Requirements. Recommendation: Procedures should be developed to ensure compliance with all grant terms and conditions. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2022-004
SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Effect: Transactions could be mishandled. Cause: There are a limited number of personnel for certain functions. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2022-005
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2022-006
WAGE RATE REQUIREMENTS Criteria: Per the OMB Compliance Supplement, recipients and subrecipients that use ESF funds for minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: The district did not include in its solicitations the appropriate Wage Rate Requirements and did not require the contractor and/or subcontractors to submit weekly certified payrolls. Cause: Responsible officials were unaware of the requirements. Effect: Noncompliance with federal Wage Rate Requirements. Recommendation: Procedures should be developed to ensure compliance with all grant terms and conditions. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.