Audit 292263

FY End
2023-06-30
Total Expended
$16.58M
Findings
12
Programs
18
Organization: Unified School District #457 (KS)
Year: 2023 Accepted: 2024-02-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
370573 2023-001 Material Weakness - L
370574 2023-001 Material Weakness - L
370575 2023-001 Material Weakness - L
370576 2023-001 Material Weakness - L
370577 2023-001 Material Weakness - L
370578 2023-001 Material Weakness - L
947015 2023-001 Material Weakness - L
947016 2023-001 Material Weakness - L
947017 2023-001 Material Weakness - L
947018 2023-001 Material Weakness - L
947019 2023-001 Material Weakness - L
947020 2023-001 Material Weakness - L

Contacts

Name Title Type
LEMEYSZLKLM7 Colleen Drees Auditee
6208057005 Theresa Dasenbrock Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on a basis of accounting which demonstrates compliance with the cash basis and budget laws of Kansas, using the regulatory basis of accounting, which is described in Note 1 to the District's regulatory basis financial statement. However, no encumbrances are included in the expenditures for federal programs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.
Finding 2023-001 Federal Agency: Department of Education Office of Elementary and Secondary Education Pass-through Entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Grant Number: S425D210002, S425D220002 Compliance Requirement: Reporting Type of Finding: Material weakness in internal control over the monitoring of grant compliance requirements. Finding: Control procedures over the monitoring of grant compliance requirements were not functioning as planned, which resulted in non-compliance with the reporting compliance requirement. Criteria: Control procedures should be in place to monitor compliance with grant requirements. This includes ensuring all grant reporting requirements are met. Condition: Grant requirements for the Education Stabilization Fund (ESF) grant require districts to submit quarterly reports of all Elementary and Secondary School Emergency Relief (ESSER) expenditures. Quarterly reports are to include expenditures incurred from the beginning of the ESSER program through the end of the quarter being reported on. The total expenditures for the Elementary and Secondary School Emergency Relief (ESSER II) and American Rescue Plan Act of 2021 Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants per the June 30, 2023, quarterly report did not agree to the general ledger. We noted the following discrepancies: • A $3,000,000 down payment paid in April 2022 with ESSER funds for the ESCO HVAC project was not included on the quarterly report. • The ESSER II grant was overspent $280,980 according to the general ledger. An audit entry was posted to move the excess expenditures to the ARP ESSER grant. As a result, these expenditures were not reported on the June 30, 2023, ARP ESSER grant quarterly report. • There were additional immaterial irreconcilable differences due to the separate ESSER grants not being consistently accounted for in their own separate funds. In addition, reports are due to the Kansas State Department of Education (KSDE) by Friday of the second full week after the quarter ends. The June 30, 2023, ESSER report was submitted one week late. Cause: The finding results from a lack of oversight and adherence to the District’s internal control process over the monitoring of grant compliance requirements. Effect or Potential Effect: Failure to meet reporting requirements could result in funds having to be returned to the granting agency. Submitting reports for incorrect amounts can result in incorrect reimbursements. In addition, delays in submitting reports can in turn cause delays in reimbursements and may lead to a loss of anticipated funding as well as negative cash balances in the grant funds. Questioned Costs: None noted. Context: The June 30, 2023, ESSER report was not submitted by the deadline and did not agree to the general ledger. Recommendation: We recommend the District monitor requirements for all grant programs to ensure compliance with both federal and state requirements. Grant reports should be reconciled to the general ledger and reviewed prior to submission to ensure correct amounts are being reported. Responsible Official’s Response: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements are accurate and timely. Subsequent to year end, management made the necessary corrections to the quarterly ESSER report submitted to the granting agency in October 2023 which reports expenditures through September 30, 2023.