Audit 297171

FY End
2023-06-30
Total Expended
$2.97M
Findings
20
Programs
14
Organization: Wellsboro Area School District (PA)
Year: 2023 Accepted: 2024-03-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
384061 2023-009 Material Weakness Yes A
384062 2023-009 Material Weakness Yes A
384063 2023-009 Material Weakness Yes A
384064 2023-009 Material Weakness Yes A
384065 2023-009 Material Weakness Yes A
384066 2023-010 Material Weakness Yes F
384067 2023-010 Material Weakness Yes F
384068 2023-010 Material Weakness Yes F
384069 2023-010 Material Weakness Yes F
384070 2023-010 Material Weakness Yes F
960503 2023-009 Material Weakness Yes A
960504 2023-009 Material Weakness Yes A
960505 2023-009 Material Weakness Yes A
960506 2023-009 Material Weakness Yes A
960507 2023-009 Material Weakness Yes A
960508 2023-010 Material Weakness Yes F
960509 2023-010 Material Weakness Yes F
960510 2023-010 Material Weakness Yes F
960511 2023-010 Material Weakness Yes F
960512 2023-010 Material Weakness Yes F

Contacts

Name Title Type
MMJAM2T3E6A4 Jordan Dehaas Auditee
5707244424 Richard J. Davis, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the District, which is described in Note 1 to the District's accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information in this schedule was prepared on the accrual basis of accounting and 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The District has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the District's share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District's financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Non-Monetary Federal Program The District is the recipient of a federal award program that does not result in cash receipts or disbursements termed a "non-monetary program". During the year ended June 30, 2023, the District received $57,662 worth of commodities under the National School Lunch Program (Assistance Listing #10.555). Note 3. Source Codes The accompanying schedule of expenditures of federal awards presents a column with the source code. The sources are as follows: Source Codes Type of Funding D Direct I Indirect S State share Note 4. Subrecipients No amounts were provided to subrecipients. The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the District, which is described in Note 1 to the District's accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information in this schedule was prepared on the accrual basis of accounting and 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The District has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the District's share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District's financial reporting system.
Title: Note 2. Non-Monetary Federal Program Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the District, which is described in Note 1 to the District's accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information in this schedule was prepared on the accrual basis of accounting and 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The District has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the District's share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District's financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Non-Monetary Federal Program The District is the recipient of a federal award program that does not result in cash receipts or disbursements termed a "non-monetary program". During the year ended June 30, 2023, the District received $57,662 worth of commodities under the National School Lunch Program (Assistance Listing #10.555). Note 3. Source Codes The accompanying schedule of expenditures of federal awards presents a column with the source code. The sources are as follows: Source Codes Type of Funding D Direct I Indirect S State share Note 4. Subrecipients No amounts were provided to subrecipients. The District is the recipient of a federal award program that does not result in cash receipts or disbursements termed a "non-monetary program". During the year ended June 30, 2023, the District received $57,662 worth of commodities under the National School Lunch Program (Assistance Listing #10.555).
Title: Note 3. Source Codes Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the District, which is described in Note 1 to the District's accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information in this schedule was prepared on the accrual basis of accounting and 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The District has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the District's share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District's financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Non-Monetary Federal Program The District is the recipient of a federal award program that does not result in cash receipts or disbursements termed a "non-monetary program". During the year ended June 30, 2023, the District received $57,662 worth of commodities under the National School Lunch Program (Assistance Listing #10.555). Note 3. Source Codes The accompanying schedule of expenditures of federal awards presents a column with the source code. The sources are as follows: Source Codes Type of Funding D Direct I Indirect S State share Note 4. Subrecipients No amounts were provided to subrecipients. The accompanying schedule of expenditures of federal awards presents a column with the source code. The sources are as follows: Source Codes Type of Funding D Direct I Indirect S State share
Title: Note 4. Subrecipients Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the District, which is described in Note 1 to the District's accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information in this schedule was prepared on the accrual basis of accounting and 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The District has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the District's share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District's financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Non-Monetary Federal Program The District is the recipient of a federal award program that does not result in cash receipts or disbursements termed a "non-monetary program". During the year ended June 30, 2023, the District received $57,662 worth of commodities under the National School Lunch Program (Assistance Listing #10.555). Note 3. Source Codes The accompanying schedule of expenditures of federal awards presents a column with the source code. The sources are as follows: Source Codes Type of Funding D Direct I Indirect S State share Note 4. Subrecipients No amounts were provided to subrecipients. No amounts were provided to subrecipients.

Finding Details

2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-009 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 3 of 60 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.
2023-010 - Education Stabilization Fund - ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2023 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District preparing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District has made contact with a third party company to come to the District in March 2024 to prepare a physical inventory of capital assets.