FAC Explorer

Audit 296540

FY End
2023-06-30
Total Expended
$3.31M
Findings
14
Programs
16
Organization: Huntley Project School District Number 24 (MT)
Year: 2023 Accepted: 2024-03-21
Auditor: Olness & Assocs PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
383341 2023-006 Material Weakness Yes P
383342 2023-006 Material Weakness Yes P
383343 2023-007 Material Weakness Yes P
383344 2023-007 Material Weakness Yes P
383345 2023-007 Material Weakness Yes P
383346 2023-007 Material Weakness Yes P
383347 2023-008 Material Weakness - H
959783 2023-006 Material Weakness Yes P
959784 2023-006 Material Weakness Yes P
959785 2023-007 Material Weakness Yes P
959786 2023-007 Material Weakness Yes P
959787 2023-007 Material Weakness Yes P
959788 2023-007 Material Weakness Yes P
959789 2023-008 Material Weakness - H

Programs

ALN Program Spent Major Findings
84.011 Migrant Education_state Grant Program $656,927 Yes 1
84.010 Title I Grants to Local Educational Agencies $240,250 - 0
10.555 National School Lunch Program $202,332 - 0
84.425U American Rescue Plan-Elementary and Secondary School Emergency Relief Fund $182,321 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $125,000 - 0
84.371 Striving Readers $118,653 - 0
84.144 Migrant Education_coordination Program $59,645 - 0
10.553 School Breakfast Program $39,663 - 0
84.287 Twenty-First Century Community Learning Centers $29,723 Yes 2
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $25,600 - 0
10.559 Summer Food Service Program for Children $23,547 - 0
84.173 Special Education_preschool Grants $11,490 - 0
84.358 Rural Education $5,826 - 0
84.424 Student Support and Academic Enrichment Program $4,220 - 0
84.048 Career and Technical Education -- Basic Grants to States $0 - 0
84.425D Elementary and Secondary School Emergency Relief Fund $0 - 0

Contacts

Name Title Type
V6NRXNN1DNZ5 Rita Huck Auditee
4069672540 Curt Wyss Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. 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. De Minimis Rate Used: N Rate Explanation: The government has elected not to use the 10 percent de minimus 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 the government 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 the 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 the government, it is not intended to and does not present the financial position or changes in net position of the government.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. 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. De Minimis Rate Used: N Rate Explanation: The government has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the modified 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. 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
Title: NOTE 3 - INDIRECT COST RATES Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. 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. De Minimis Rate Used: N Rate Explanation: The government has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The government has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 4 - DONATED PPE Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. 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. De Minimis Rate Used: N Rate Explanation: The government has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The estimated Fair Market Value (FMV) of donated PPE for the year ended June 30, 2023 was $0 (unaudited).
Title: NOTE 5 - RELATIONSHIP TO THE BASIC FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. 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. De Minimis Rate Used: N Rate Explanation: The government has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Federal award revenues are reported in the basic financial statements as federal sources in the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds. The following is a reconciliation of cash receipts on the Schedule of Expenditures of Federal Awards to federal sources reported on the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds. Cash receipts 4,276,078, Revenue Accrual Adjustments (963,149), Commodities (47,340) Federal Sources 3,265,589

Finding Details

Finding 2023-006
SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-006
SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-008
21st CENTURY COMMUNITY LEARNING CENTERS: ALN 84.287; GRANT NO. 5609831723: GRANT PERIOD YEAR ENDED JUNE 30, 2023Criteria: The Uniform Guidance in 2 CFR 200.77 defines "period of performance" as the time during which the non-Federal entity (grantee) may incur new obligations to carry out the work. When used in connection with a non-Federal entity’s use of funds under a Federal award, the term "obligations" "means orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment by the non-Federal entity during the same or a future period. Condition: The district charged expenditures to the program that were outside of the period of performance. Cause: Responsible personnel misinterpreted the period of performance requirements. Effect: Noncompliance with period of performance requirements . Questioned Costs: $29,723. Recommendation: The district should revisit the Education Department General Administrative Regulations (EDGAR) at 34 CFR 76.707, which provide a chart that specifies when obligations are considered made. Once reviewed, the district should develop formal policies and procedures to ensure compliance with the requirements. The policies and procedures should be documented and disseminated to all applicable personnel. Views of Responsible Officials and Planned Corrective Action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-006
SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-006
SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-007
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government’s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government’s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Finding 2023-008
21st CENTURY COMMUNITY LEARNING CENTERS: ALN 84.287; GRANT NO. 5609831723: GRANT PERIOD YEAR ENDED JUNE 30, 2023Criteria: The Uniform Guidance in 2 CFR 200.77 defines "period of performance" as the time during which the non-Federal entity (grantee) may incur new obligations to carry out the work. When used in connection with a non-Federal entity’s use of funds under a Federal award, the term "obligations" "means orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment by the non-Federal entity during the same or a future period. Condition: The district charged expenditures to the program that were outside of the period of performance. Cause: Responsible personnel misinterpreted the period of performance requirements. Effect: Noncompliance with period of performance requirements . Questioned Costs: $29,723. Recommendation: The district should revisit the Education Department General Administrative Regulations (EDGAR) at 34 CFR 76.707, which provide a chart that specifies when obligations are considered made. Once reviewed, the district should develop formal policies and procedures to ensure compliance with the requirements. The policies and procedures should be documented and disseminated to all applicable personnel. Views of Responsible Officials and Planned Corrective Action: The government agrees with this finding and will adhere to the attached corrective action plan.