FAC Explorer

Audit 292221

FY End
2023-06-30
Total Expended
$3.48M
Findings
8
Programs
11
Organization: Octorara Area School District (PA)
Year: 2023 Accepted: 2024-02-26
Auditor: Herbein + Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370541 2023-002 Significant Deficiency - AB
370542 2023-002 Significant Deficiency - AB
370543 2023-002 Significant Deficiency - AB
370544 2023-002 Significant Deficiency - AB
946983 2023-002 Significant Deficiency - AB
946984 2023-002 Significant Deficiency - AB
946985 2023-002 Significant Deficiency - AB
946986 2023-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $996,500 Yes 1
84.010 Title I Grants to Local Educational Agencies $726,168 - 0
10.553 School Breakfast Program $163,293 - 0
84.367 Supporting Effective Instruction State Grant $104,140 - 0
84.027 Special Education_grants to States $87,981 - 0
10.555 National School Lunch Program $71,459 - 0
84.424 Student Support and Academic Enrichment Program $52,529 - 0
84.048 Career and Technical Education -- Basic Grants to States $41,362 - 0
93.778 Medical Assistance Program $24,499 - 0
84.365 English Language Acquisition State Grants $9,202 - 0
84.173 Special Education_preschool Grants $1,408 - 0

Contacts

Name Title Type
YVMAC3CQB1M7 Scott Domowicz Auditee
6105938214 Linda Himeback Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business for amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis rate for indirect costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Octorara Area School District under programs of the federal government for the year ended June 30, 2023. 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 Octorara Area School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of Octorara Area School District.
Title: ACCESS PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business for amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis rate for indirect costs. The District participates in the ACCESS Program which is a medical assistance program that reimburses local educational agencies for direct eligible health-related services provided to enrolled special needs students. Reimbursements are federal source revenues but are classified as fee-for-service and are not considered federal financial assistance. The amount of ACCESS funding classified as fee-for-service and recognized for the year ended June 30, 2023 was $72,936.
Title: FOOD COMMODITIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business for amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis rate for indirect costs. Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities received and disbursed. At June 30, 2023, the District had $7,340 of food commodity inventory.

Finding Details

Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.
Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.
Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.
Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.
Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.
Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.
Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.
Finding 2023-002
Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Criteria The grant agreements under the Education Stabilization Fund programs outline costs that are allowable for the program. Recipients of funds are required to establish internal controls over allowable activities and allowable costs to ensure only allowable expenditures are being charged to the grant. Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Effect Grant funds were utilized to fund expenditures not intended to be funded with Education Stabilization Fund monies. Questioned Costs Less than $25,000. Context There were 7 salaried positions funded with Education Stabilization Fund grants during the year. Our audit procedures did not utilize sampling and all 7 positions were tested. The 1 individual who was coded to the grant but was not approved by the Board of Directors to be funded with Education Stabilization Fund grants had recently transferred positions. The individual who was approved to be funded with Education Stabilization Fund grants but was not charged to the program had the same salary as the individual who was charged to the program but not approved. Because of this, there are no questioned costs, but internal controls did not operate as designed to ensure only individuals approved by the Board of Directors were charged to the program. The invoice erroneously charged to the Education Stabilization Fund due to a coding error totaled $2,613. This was 6.16% of total costs tested as part of our sample. Repeat Finding No. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response See corrective action plan included in this report package.