FAC Explorer

Audit 290464

FY End
2023-08-31
Total Expended
$2.21M
Findings
6
Programs
12
Organization: White Oak Independent School District (TX)
Year: 2023 Accepted: 2024-02-14
Auditor: Malnory McNeal and Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369060 2023-002 Material Weakness - B
369061 2023-003 Material Weakness - B
369062 2023-003 Material Weakness - B
945502 2023-002 Material Weakness - B
945503 2023-003 Material Weakness - B
945504 2023-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $682,934 Yes 1
16.710 Public Safety Partnership and Community Policing Grants $500,000 - 0
84.010 Title I Grants to Local Educational Agencies $297,148 Yes 1
10.553 School Breakfast Program $91,408 - 0
10.565 Commodity Supplemental Food Program $58,551 - 0
10.555 National School Lunch Program $56,994 - 0
84.367 Improving Teacher Quality State Grants $38,152 - 0
84.027 Special Education_grants to States $33,128 - 0
84.048 Career and Technical Education -- Basic Grants to States $18,962 - 0
45.310 Grants to States $8,979 - 0
84.173 Special Education_preschool Grants $6,382 - 0
84.424 Student Support and Academic Enrichment Program $1,277 - 0

Contacts

Name Title Type
LT7JH2LKT7L3 Carrie Howard Auditee
9032912000 Johnna McNeal Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: MODIFIED ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: White Oak Independent School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of White Oak Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200 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. Federal grants 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 deferred revenues until earned. The Commodity Supplemental Food Program (CFDA 10.565) received like-kind goods. The monetary value of these goods was $58,551 for the year ended August 31, 2023. This monetary value was reported on the schedule. The District participates in numerous state and federal grant programs governed by various rules and regulations of the grantor agencies. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the grants, if any, refunds of any money received may be required and the collectability of any related receivable at August 31, 2023, may be impaired. Negative amounts shown, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying basic financial statements for such contingency. White Oak Independent School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Reconciliation of Federal Awards The following reconciles federal expenditures per the Schedule of Expenditures of Federal Awards (SEFA) to the federal revenue reported on Exhibit C-2: Federal expenditures per SEFA $ 2,205,899 SHARS 284,647 Federal revenue per Exhibit C-2 $ 2,490,546

Finding Details

Finding 2023-002
Federal Program: ESEA Title I Part A Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, the payroll administrator, and the Chief Financial Officer Effect: The lack of internal controls could result in a questioned cost. Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program have the correct credentials and that their schedules align with the program requirements. We also recommend the program director review and approve who is being charged to the program at least twice a year.
Finding 2023-003
Federal Program: ESSER FUND II of the CRRSA ACT and ESSER FUND III of the American Rescue Plan Act of 2021 Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines and the grant spend plan. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, payroll administrator, and the Chief Financial Officer. Effect: The lack of internal controls could result in a questioned cost. Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program agree with what was decided in the spend plan and that there were no changes. Also, verify any other expenditures charged to the program agree to the spend plan
Finding 2023-003
Federal Program: ESSER FUND II of the CRRSA ACT and ESSER FUND III of the American Rescue Plan Act of 2021 Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines and the grant spend plan. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, payroll administrator, and the Chief Financial Officer. Effect: The lack of internal controls could result in a questioned cost. Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program agree with what was decided in the spend plan and that there were no changes. Also, verify any other expenditures charged to the program agree to the spend plan
Finding 2023-002
Federal Program: ESEA Title I Part A Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, the payroll administrator, and the Chief Financial Officer Effect: The lack of internal controls could result in a questioned cost. Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program have the correct credentials and that their schedules align with the program requirements. We also recommend the program director review and approve who is being charged to the program at least twice a year.
Finding 2023-003
Federal Program: ESSER FUND II of the CRRSA ACT and ESSER FUND III of the American Rescue Plan Act of 2021 Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines and the grant spend plan. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, payroll administrator, and the Chief Financial Officer. Effect: The lack of internal controls could result in a questioned cost. Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program agree with what was decided in the spend plan and that there were no changes. Also, verify any other expenditures charged to the program agree to the spend plan
Finding 2023-003
Federal Program: ESSER FUND II of the CRRSA ACT and ESSER FUND III of the American Rescue Plan Act of 2021 Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines and the grant spend plan. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, payroll administrator, and the Chief Financial Officer. Effect: The lack of internal controls could result in a questioned cost. Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program agree with what was decided in the spend plan and that there were no changes. Also, verify any other expenditures charged to the program agree to the spend plan