FAC Explorer

Audit 294158

FY End
2023-06-30
Total Expended
$2.11M
Findings
12
Programs
9
Organization: Millersburg Area School District (PA)
Year: 2023 Accepted: 2024-03-08
Auditor: Boyer & Ritter LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
374480 2023-002 Significant Deficiency Yes C
374481 2023-002 Significant Deficiency Yes C
374482 2023-002 Significant Deficiency Yes C
374483 2023-003 Significant Deficiency - I
374484 2023-003 Significant Deficiency - I
374485 2023-003 Significant Deficiency - I
950922 2023-002 Significant Deficiency Yes C
950923 2023-002 Significant Deficiency Yes C
950924 2023-002 Significant Deficiency Yes C
950925 2023-003 Significant Deficiency - I
950926 2023-003 Significant Deficiency - I
950927 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $228,225 - 0
84.027 Special Education_grants to States $148,030 - 0
84.425 Education Stabilization Fund $72,034 Yes 2
10.553 School Breakfast Program $46,580 - 0
10.555 National School Lunch Program $36,131 - 0
84.367 Improving Teacher Quality State Grants $32,588 - 0
84.424 Student Support and Academic Enrichment Program $18,523 - 0
93.778 Medical Assistance Program $3,079 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
JNCMGA5DJ2Z3 Eric Petery Auditee
7176922895 Senahid Zahirovic 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue is recognized when earned, and expenses are recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the Federal award activity of Millersburg 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 Millersburg Area School District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Millersburg 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue is recognized when earned, and expenses are recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The ACCESS Program is a medical assistance program that reimburses local education agencies for direct, eligible health-related services provided to enrolled special needs students. ACCESS reimbursements are Federal monies but are classified as fee-for-service revenues and are not considered Federal financial assistance and are not included on the Schedule. The amount of ACCESS funding expended, but not included on the Schedule for the year ended June 30, 2023, was $-0-.

Finding Details

Finding 2023-002
Cash Management and Reporting Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity: Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2002 for grant for grant #200-210254 and #223-210254. Also, the District did not file the required quarterly report for September 2022 for grant #225-210254 in a timely manner within the 10-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports timely. By not filing the required reports timely, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: Yes, #2022-001 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-002
Cash Management and Reporting Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity: Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2002 for grant for grant #200-210254 and #223-210254. Also, the District did not file the required quarterly report for September 2022 for grant #225-210254 in a timely manner within the 10-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports timely. By not filing the required reports timely, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: Yes, #2022-001 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-002
Cash Management and Reporting Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity: Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2002 for grant for grant #200-210254 and #223-210254. Also, the District did not file the required quarterly report for September 2022 for grant #225-210254 in a timely manner within the 10-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports timely. By not filing the required reports timely, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: Yes, #2022-001 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-003
Procurement Education Stabilization Fund – AL #84.425 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Furthermore, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Condition: The District did not follow the appropriate procedures to comply with Uniform Grant Guidance. During testing, it was noted that the District made procurements through noncompetitive procurement arrangements. Consistent with 2 CFR § 200.320(c)(3), an LEA may determine that its response to the COVID-19 pandemic qualifies as a public exigency or emergency that does not permit the delay that would result from competitive bidding. Under these circumstances, and to the degree doing so is consistent with its own policies and procedures, a District could use noncompetitive procurement. The District should consult with the Pennsylvania Department of Education before using this authority. Subsequently, the District paid for this purchase utilizing the Education Stabilization Fund. In using federal funds to pay for these items, the District inadvertently did not follow its procurement policy. Cause and Effect: When the District initially made the purchases, they did not follow the more stringent requirements imposed by Uniform Guidance. The District did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Grant Guidance. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that when the District decides to utilize cooperative purchasing programs or noncompetitive purchasing arrangements and use federal funds to pay for those purchases they ensure that they comply with their procurement policy. The District should then document its process and how it complies with the procurement standards and keep such documentation with Federal Award budget/procurement documents. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-003
Procurement Education Stabilization Fund – AL #84.425 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Furthermore, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Condition: The District did not follow the appropriate procedures to comply with Uniform Grant Guidance. During testing, it was noted that the District made procurements through noncompetitive procurement arrangements. Consistent with 2 CFR § 200.320(c)(3), an LEA may determine that its response to the COVID-19 pandemic qualifies as a public exigency or emergency that does not permit the delay that would result from competitive bidding. Under these circumstances, and to the degree doing so is consistent with its own policies and procedures, a District could use noncompetitive procurement. The District should consult with the Pennsylvania Department of Education before using this authority. Subsequently, the District paid for this purchase utilizing the Education Stabilization Fund. In using federal funds to pay for these items, the District inadvertently did not follow its procurement policy. Cause and Effect: When the District initially made the purchases, they did not follow the more stringent requirements imposed by Uniform Guidance. The District did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Grant Guidance. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that when the District decides to utilize cooperative purchasing programs or noncompetitive purchasing arrangements and use federal funds to pay for those purchases they ensure that they comply with their procurement policy. The District should then document its process and how it complies with the procurement standards and keep such documentation with Federal Award budget/procurement documents. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-003
Procurement Education Stabilization Fund – AL #84.425 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Furthermore, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Condition: The District did not follow the appropriate procedures to comply with Uniform Grant Guidance. During testing, it was noted that the District made procurements through noncompetitive procurement arrangements. Consistent with 2 CFR § 200.320(c)(3), an LEA may determine that its response to the COVID-19 pandemic qualifies as a public exigency or emergency that does not permit the delay that would result from competitive bidding. Under these circumstances, and to the degree doing so is consistent with its own policies and procedures, a District could use noncompetitive procurement. The District should consult with the Pennsylvania Department of Education before using this authority. Subsequently, the District paid for this purchase utilizing the Education Stabilization Fund. In using federal funds to pay for these items, the District inadvertently did not follow its procurement policy. Cause and Effect: When the District initially made the purchases, they did not follow the more stringent requirements imposed by Uniform Guidance. The District did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Grant Guidance. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that when the District decides to utilize cooperative purchasing programs or noncompetitive purchasing arrangements and use federal funds to pay for those purchases they ensure that they comply with their procurement policy. The District should then document its process and how it complies with the procurement standards and keep such documentation with Federal Award budget/procurement documents. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-002
Cash Management and Reporting Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity: Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2002 for grant for grant #200-210254 and #223-210254. Also, the District did not file the required quarterly report for September 2022 for grant #225-210254 in a timely manner within the 10-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports timely. By not filing the required reports timely, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: Yes, #2022-001 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-002
Cash Management and Reporting Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity: Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2002 for grant for grant #200-210254 and #223-210254. Also, the District did not file the required quarterly report for September 2022 for grant #225-210254 in a timely manner within the 10-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports timely. By not filing the required reports timely, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: Yes, #2022-001 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-002
Cash Management and Reporting Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity: Pennsylvania Department of Education Criteria: The Pennsylvania Department of Revenue requires Reconciliation of Cash on Hand Quarterly Reports for any program for which they are receiving monthly payments. These quarterly reports are due the 10th working days of January, April, July, and October. The Pennsylvania Department of Education requires final expenditure reports to be filed documenting the financial transactions of each grant. The final reports are due within 30 days after funds are expended but no later than 30 days after the ending date of the project. Districts are required to have appropriate controls over the accuracy of preparation and timely filing of final expenditure reports. Condition: The District did not file the required quarterly reports for September 2002 for grant for grant #200-210254 and #223-210254. Also, the District did not file the required quarterly report for September 2022 for grant #225-210254 in a timely manner within the 10-day requirement. Cause and Effect: The District's Business office did not file the quarterly cash on hand reports timely. By not filing the required reports timely, the District is potentially risking a withholding of federal funds by the PDE until the reports are properly filed. Identification of Repeat Finding: Yes, #2022-001 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all quarterly cash on hand within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-003
Procurement Education Stabilization Fund – AL #84.425 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Furthermore, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Condition: The District did not follow the appropriate procedures to comply with Uniform Grant Guidance. During testing, it was noted that the District made procurements through noncompetitive procurement arrangements. Consistent with 2 CFR § 200.320(c)(3), an LEA may determine that its response to the COVID-19 pandemic qualifies as a public exigency or emergency that does not permit the delay that would result from competitive bidding. Under these circumstances, and to the degree doing so is consistent with its own policies and procedures, a District could use noncompetitive procurement. The District should consult with the Pennsylvania Department of Education before using this authority. Subsequently, the District paid for this purchase utilizing the Education Stabilization Fund. In using federal funds to pay for these items, the District inadvertently did not follow its procurement policy. Cause and Effect: When the District initially made the purchases, they did not follow the more stringent requirements imposed by Uniform Guidance. The District did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Grant Guidance. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that when the District decides to utilize cooperative purchasing programs or noncompetitive purchasing arrangements and use federal funds to pay for those purchases they ensure that they comply with their procurement policy. The District should then document its process and how it complies with the procurement standards and keep such documentation with Federal Award budget/procurement documents. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-003
Procurement Education Stabilization Fund – AL #84.425 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Furthermore, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Condition: The District did not follow the appropriate procedures to comply with Uniform Grant Guidance. During testing, it was noted that the District made procurements through noncompetitive procurement arrangements. Consistent with 2 CFR § 200.320(c)(3), an LEA may determine that its response to the COVID-19 pandemic qualifies as a public exigency or emergency that does not permit the delay that would result from competitive bidding. Under these circumstances, and to the degree doing so is consistent with its own policies and procedures, a District could use noncompetitive procurement. The District should consult with the Pennsylvania Department of Education before using this authority. Subsequently, the District paid for this purchase utilizing the Education Stabilization Fund. In using federal funds to pay for these items, the District inadvertently did not follow its procurement policy. Cause and Effect: When the District initially made the purchases, they did not follow the more stringent requirements imposed by Uniform Guidance. The District did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Grant Guidance. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that when the District decides to utilize cooperative purchasing programs or noncompetitive purchasing arrangements and use federal funds to pay for those purchases they ensure that they comply with their procurement policy. The District should then document its process and how it complies with the procurement standards and keep such documentation with Federal Award budget/procurement documents. Management Response: See Corrective Action Plan on pages 82-83.
Finding 2023-003
Procurement Education Stabilization Fund – AL #84.425 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Furthermore, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Condition: The District did not follow the appropriate procedures to comply with Uniform Grant Guidance. During testing, it was noted that the District made procurements through noncompetitive procurement arrangements. Consistent with 2 CFR § 200.320(c)(3), an LEA may determine that its response to the COVID-19 pandemic qualifies as a public exigency or emergency that does not permit the delay that would result from competitive bidding. Under these circumstances, and to the degree doing so is consistent with its own policies and procedures, a District could use noncompetitive procurement. The District should consult with the Pennsylvania Department of Education before using this authority. Subsequently, the District paid for this purchase utilizing the Education Stabilization Fund. In using federal funds to pay for these items, the District inadvertently did not follow its procurement policy. Cause and Effect: When the District initially made the purchases, they did not follow the more stringent requirements imposed by Uniform Guidance. The District did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Grant Guidance. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that when the District decides to utilize cooperative purchasing programs or noncompetitive purchasing arrangements and use federal funds to pay for those purchases they ensure that they comply with their procurement policy. The District should then document its process and how it complies with the procurement standards and keep such documentation with Federal Award budget/procurement documents. Management Response: See Corrective Action Plan on pages 82-83.