FAC Explorer

Audit 27833

FY End
2022-08-31
Total Expended
$1.19M
Findings
6
Programs
7
Organization: West Hardin County Cisd (TX)
Year: 2022 Accepted: 2023-04-04
Auditor: Axley & Rode LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28679 2022-001 Significant Deficiency Yes A
28680 2022-001 Significant Deficiency Yes A
28681 2022-001 Significant Deficiency Yes A
605121 2022-001 Significant Deficiency Yes A
605122 2022-001 Significant Deficiency Yes A
605123 2022-001 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $324,488 Yes 1
10.555 National School Lunch Program $289,537 - 0
84.010 Title I Grants to Local Educational Agencies $240,150 - 0
10.553 School Breakfast Program $103,967 - 0
10.565 Commodity Supplemental Food Program $26,333 - 0
84.367 Improving Teacher Quality State Grants $12,485 - 0
84.424 Student Support and Academic Enrichment Program $8,925 - 0

Contacts

Name Title Type
DKFRYH8GL2L1 Michael Smith Auditee
9362745061 Eric Carver Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity ofWest Hardin County Consolidated Independent School District under programs of the federal government for the yearended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of West Hardin County Consolidated Independent School District, it is not intended to and does not presentthe financial position, changes in net assets, or cash flows of West Hardin County Consolidated Independent SchoolDistrict.2. For all federal programs, the District uses the fund types specified in Texas Education Agency's Financial AccountabilitySystem Resource Guide . Special revenue funds are used to account for resources restricted to, or designated for, specificpurposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund.3. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Thegovernmental fund types are accounted for using a current financial resources measurement focus. All federal grantfunds were accounted for in a Special Revenue Fund which is a governmental fund type. With this measurement focus,only current assets and current liabilities and the fund balance are included on the balance sheet. Operating statementsof these funds present increases and decreases in net current assets.The modified accrual basis of accounting is used for the governmental fund types, and custodial funds. The basis ofaccounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., bothmeasurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable,except for unmatured interest on general long-term debt, which is recognized when due, and certain compensatedabsences and claims and judgments, which are recognized when the obligations are expected to be liquidated withexpendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant,and, accordingly, when such funds are received, they are recorded as unearned revenues until earned.4. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on orbefore the ending date of the federal project period extended 30 days beyond the federal project period ending date,in accordance with provisions in Section H, Period of Availability of Federal Funds, Part 3 Uniform Guidance ComplianceStatement - Provisional 6/97.5. The District has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing
Finding 2022-001
2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing
Finding 2022-001
2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing
Finding 2022-001
2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing
Finding 2022-001
2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing
Finding 2022-001
2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing