Audit 29644

FY End
2022-06-30
Total Expended
$3.64M
Findings
12
Programs
14
Year: 2022 Accepted: 2023-08-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
37702 2022-101 Material Weakness Yes L
37703 2022-102 Material Weakness - B
37704 2022-103 Significant Deficiency Yes F
37705 2022-101 Material Weakness Yes L
37706 2022-102 Material Weakness - B
37707 2022-103 Significant Deficiency Yes F
614144 2022-101 Material Weakness Yes L
614145 2022-102 Material Weakness - B
614146 2022-103 Significant Deficiency Yes F
614147 2022-101 Material Weakness Yes L
614148 2022-102 Material Weakness - B
614149 2022-103 Significant Deficiency Yes F

Contacts

Name Title Type
YPKCBE8Y99A9 Lorrie Harding Auditee
9287342462 Jay Z. Parke Auditor
No contacts on file

Notes to SEFA

Title: Federal Assistance Listings (FAL) Number Accounting Policies: Expenditures reported on the schedule are presented on the modified accrual basis of accounting. Certain amounts reported as expenditures are based on formula grants calculated using the number of meals served or a three-year rolling average of student attendance. Other 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: Hotevilla Bacavi Community School did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR ?200.414. The program titles and FAL numbers were obtained from the federal or pass-through grantor or the 2022 Federal Assistance Listings.
Title: Subrecipients Accounting Policies: Expenditures reported on the schedule are presented on the modified accrual basis of accounting. Certain amounts reported as expenditures are based on formula grants calculated using the number of meals served or a three-year rolling average of student attendance. Other 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: Hotevilla Bacavi Community School did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR ?200.414. Hotevilla Bacavi Community School did not have any subrecipients for 2022.
Title: Basis of Accounting Accounting Policies: Expenditures reported on the schedule are presented on the modified accrual basis of accounting. Certain amounts reported as expenditures are based on formula grants calculated using the number of meals served or a three-year rolling average of student attendance. Other 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: Hotevilla Bacavi Community School did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR ?200.414. The accompanying schedule of expenditures of federal awards (schedule) includes Hotevilla Bacavi Community Schools federal grant activity for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Finding Details

Condition and Context: The four quarterly reports were not filed within the 30 days required by the contract. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditee?s fiscal year end. Criteria, Cause and Effect: According to 2 CFR ?200.327, Financial Reporting, information must be collected with the frequency required by the terms and conditions of the Federal award. The contracts require the filing of quarterly reports within 30 days after the quarter-end. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees? fiscal year end. The cause is due to a decrease in personnel at the School, requiring finance personnel to complete additional nonfinance related tasks. The effect is the late filing of the quarterly reports and late submission to the Federal Audit Clearinghouse. Recommendation: We recommend that the School establish a system of monitoring for the filing of all required reporting and that the chief school administrator review the monitoring list on a regular basis consistent with the timing of report filings. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: During 2022, the School provided stipends to employees for recruiting and retention. These stipends ranged from $1,800 to $16,700 per employee. The recruiting and retention stipends had no supporting documentation justifying the amount paid. Criteria, Cause and Effect: According to 2 CFR ?200.430, Compensation ? personal services, compensation must be ?reasonable for the services rendered? and be ?supported by the total activity for which the employee is providing services.? The cause is due to a lack of understanding of the required support for personal compensation as required by 2 CFR ?200.430. The effect is insufficient support for employee stipends. Recommendation: We recommend that the School establish a written policy on the stipends for recruiting and retention that is reasonable and comparable to other similar organizations in the area. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: The School has not performed a comprehensive inventory of capital assets in several years. Accordingly, the School has not reconciled a physical observation to its detailed capital asset listing. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that the School perform a physical inventory of the School's capital assets on at least a biennial basis. In addition, the Finance Department should update the School's accounting records based on the results of the physical inventory. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: The four quarterly reports were not filed within the 30 days required by the contract. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditee?s fiscal year end. Criteria, Cause and Effect: According to 2 CFR ?200.327, Financial Reporting, information must be collected with the frequency required by the terms and conditions of the Federal award. The contracts require the filing of quarterly reports within 30 days after the quarter-end. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees? fiscal year end. The cause is due to a decrease in personnel at the School, requiring finance personnel to complete additional nonfinance related tasks. The effect is the late filing of the quarterly reports and late submission to the Federal Audit Clearinghouse. Recommendation: We recommend that the School establish a system of monitoring for the filing of all required reporting and that the chief school administrator review the monitoring list on a regular basis consistent with the timing of report filings. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: During 2022, the School provided stipends to employees for recruiting and retention. These stipends ranged from $1,800 to $16,700 per employee. The recruiting and retention stipends had no supporting documentation justifying the amount paid. Criteria, Cause and Effect: According to 2 CFR ?200.430, Compensation ? personal services, compensation must be ?reasonable for the services rendered? and be ?supported by the total activity for which the employee is providing services.? The cause is due to a lack of understanding of the required support for personal compensation as required by 2 CFR ?200.430. The effect is insufficient support for employee stipends. Recommendation: We recommend that the School establish a written policy on the stipends for recruiting and retention that is reasonable and comparable to other similar organizations in the area. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: The School has not performed a comprehensive inventory of capital assets in several years. Accordingly, the School has not reconciled a physical observation to its detailed capital asset listing. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that the School perform a physical inventory of the School's capital assets on at least a biennial basis. In addition, the Finance Department should update the School's accounting records based on the results of the physical inventory. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: The four quarterly reports were not filed within the 30 days required by the contract. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditee?s fiscal year end. Criteria, Cause and Effect: According to 2 CFR ?200.327, Financial Reporting, information must be collected with the frequency required by the terms and conditions of the Federal award. The contracts require the filing of quarterly reports within 30 days after the quarter-end. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees? fiscal year end. The cause is due to a decrease in personnel at the School, requiring finance personnel to complete additional nonfinance related tasks. The effect is the late filing of the quarterly reports and late submission to the Federal Audit Clearinghouse. Recommendation: We recommend that the School establish a system of monitoring for the filing of all required reporting and that the chief school administrator review the monitoring list on a regular basis consistent with the timing of report filings. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: During 2022, the School provided stipends to employees for recruiting and retention. These stipends ranged from $1,800 to $16,700 per employee. The recruiting and retention stipends had no supporting documentation justifying the amount paid. Criteria, Cause and Effect: According to 2 CFR ?200.430, Compensation ? personal services, compensation must be ?reasonable for the services rendered? and be ?supported by the total activity for which the employee is providing services.? The cause is due to a lack of understanding of the required support for personal compensation as required by 2 CFR ?200.430. The effect is insufficient support for employee stipends. Recommendation: We recommend that the School establish a written policy on the stipends for recruiting and retention that is reasonable and comparable to other similar organizations in the area. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: The School has not performed a comprehensive inventory of capital assets in several years. Accordingly, the School has not reconciled a physical observation to its detailed capital asset listing. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that the School perform a physical inventory of the School's capital assets on at least a biennial basis. In addition, the Finance Department should update the School's accounting records based on the results of the physical inventory. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: The four quarterly reports were not filed within the 30 days required by the contract. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditee?s fiscal year end. Criteria, Cause and Effect: According to 2 CFR ?200.327, Financial Reporting, information must be collected with the frequency required by the terms and conditions of the Federal award. The contracts require the filing of quarterly reports within 30 days after the quarter-end. Also, the Uniform Guidance requires the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees? fiscal year end. The cause is due to a decrease in personnel at the School, requiring finance personnel to complete additional nonfinance related tasks. The effect is the late filing of the quarterly reports and late submission to the Federal Audit Clearinghouse. Recommendation: We recommend that the School establish a system of monitoring for the filing of all required reporting and that the chief school administrator review the monitoring list on a regular basis consistent with the timing of report filings. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: During 2022, the School provided stipends to employees for recruiting and retention. These stipends ranged from $1,800 to $16,700 per employee. The recruiting and retention stipends had no supporting documentation justifying the amount paid. Criteria, Cause and Effect: According to 2 CFR ?200.430, Compensation ? personal services, compensation must be ?reasonable for the services rendered? and be ?supported by the total activity for which the employee is providing services.? The cause is due to a lack of understanding of the required support for personal compensation as required by 2 CFR ?200.430. The effect is insufficient support for employee stipends. Recommendation: We recommend that the School establish a written policy on the stipends for recruiting and retention that is reasonable and comparable to other similar organizations in the area. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: The School has not performed a comprehensive inventory of capital assets in several years. Accordingly, the School has not reconciled a physical observation to its detailed capital asset listing. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that the School perform a physical inventory of the School's capital assets on at least a biennial basis. In addition, the Finance Department should update the School's accounting records based on the results of the physical inventory. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.