FAC Explorer

Audit 298115

FY End
2023-06-30
Total Expended
$818,238
Findings
8
Programs
14
Organization: Newell School District (SD)
Year: 2023 Accepted: 2024-03-26
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
385027 2023-003 Material Weakness Yes L
385028 2023-004 Material Weakness Yes L
385029 2023-004 Material Weakness Yes L
385030 2023-003 Material Weakness Yes L
961469 2023-003 Material Weakness Yes L
961470 2023-004 Material Weakness Yes L
961471 2023-004 Material Weakness Yes L
961472 2023-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $363,355 Yes 2
84.010 Title I Grants to Local Educational Agencies $147,590 - 0
10.555 National School Lunch Program $66,202 - 0
15.227 Distribution of Receipts to State and Local Governments $50,506 - 0
84.027 Special Education_grants to States $37,341 - 0
84.367 Improving Teacher Quality State Grants $29,466 - 0
84.048 Career and Technical Education -- Basic Grants to States $27,991 - 0
84.424 Student Support and Academic Enrichment Program $16,386 - 0
10.553 School Breakfast Program $14,907 - 0
15.226 Payments in Lieu of Taxes $12,426 - 0
10.582 Fresh Fruit and Vegetable Program $8,469 - 0
97.067 Homeland Security Grant Program $7,814 - 0
84.173 Special Education_preschool Grants $1,205 - 0
10.575 Farm to School Grant Program $1,004 - 0

Contacts

Name Title Type
MY5VKX4CGDK6 Don Kirkegaard Auditee
6054562393 Jeff Yennie Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation and Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the 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 operatons of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost of principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the 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 the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. 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.
Title: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the 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 operatons of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost of principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Cash Reimbursement Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the 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 operatons of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost of principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. These amounts reflect cash received. Federal reimbursements are based on approved rates for services provided rather than reimbursement for specific expenditures.
Title: Non-Monetary Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the 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 operatons of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost of principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. These amounts include non-monetary assistance which is reported at fair market value of the commodities received and disbursed.

Finding Details

Finding 2023-003
2023-003 FINDING: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards. Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: As in prior years, we were requested to draft the audited financial statements, and related footnote disclosures and SEFA as part of our regular audit services. Additionally, we were requested to draft the schedule of expenditures of federal awards. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for us to do with organizations of the District’s size. Criteria and Effect: It is our responsibility to inform the School Board this deficiency could result in a material misstatement to the financial statements that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding 2022-003. Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s financial statements. We are satisfied that the appropriate steps have been taken to provide the District with the completed financial statements. It is the responsibility of management and the School Board to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan. (SEFA)
Finding 2023-004
2023-004 FINDING: Audit Adjustments Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During the course of our engagement, we assisted with adjusting SDRS pension activity and we proposed material audit adjustments. The adjustments included: a. Adjusting property tax receivable and unavailable revenue b. Adjusting capital assets of governmental activities c. Adjusting accounts payable and accrued leave d. Adjusting reoffering premium amortization on refunding bonds e. Adjusting federal revenue and receivable for ESSER expenditures incurred but not yet received. Other entries were proposed as part of the audit but were not recorded due to the overall insignificance on the financial statements. Criteria and Effect: These adjustments were not recorded through the District’s existing internal controls, and therefore, resulted in a material misstatement of the District’s financial statements. As in past audits, these adjustments were made by us as part of our audit process. Repeat Finding from Prior Year: Yes, prior year finding 2022-004. Recommendation: We recommend management adjust all significant accounts at year end. This will provide the District with accurate financial information. Specifically: a. Property tax receivable and related revenues should be monitored and adjusted at least annually b. Capital expenditures should be capitalized and depreciated over the useful life of the asset c. Accounts payable and accrued leave balances should be monitored and recorded on an annual basis d. Amortization on refunding bonds should be recorded over the life of the bond e. Federal revenue and receivables should be recorded at year end to reflect federal expenditures not yet reimbursed. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
Finding 2023-004
2023-004 FINDING: Audit Adjustments Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During the course of our engagement, we assisted with adjusting SDRS pension activity and we proposed material audit adjustments. The adjustments included: a. Adjusting property tax receivable and unavailable revenue b. Adjusting capital assets of governmental activities c. Adjusting accounts payable and accrued leave d. Adjusting reoffering premium amortization on refunding bonds e. Adjusting federal revenue and receivable for ESSER expenditures incurred but not yet received. Other entries were proposed as part of the audit but were not recorded due to the overall insignificance on the financial statements. Criteria and Effect: These adjustments were not recorded through the District’s existing internal controls, and therefore, resulted in a material misstatement of the District’s financial statements. As in past audits, these adjustments were made by us as part of our audit process. Repeat Finding from Prior Year: Yes, prior year finding 2022-004. Recommendation: We recommend management adjust all significant accounts at year end. This will provide the District with accurate financial information. Specifically: a. Property tax receivable and related revenues should be monitored and adjusted at least annually b. Capital expenditures should be capitalized and depreciated over the useful life of the asset c. Accounts payable and accrued leave balances should be monitored and recorded on an annual basis d. Amortization on refunding bonds should be recorded over the life of the bond e. Federal revenue and receivables should be recorded at year end to reflect federal expenditures not yet reimbursed. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
Finding 2023-003
2023-003 FINDING: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards. Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: As in prior years, we were requested to draft the audited financial statements, and related footnote disclosures and SEFA as part of our regular audit services. Additionally, we were requested to draft the schedule of expenditures of federal awards. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for us to do with organizations of the District’s size. Criteria and Effect: It is our responsibility to inform the School Board this deficiency could result in a material misstatement to the financial statements that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding 2022-003. Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s financial statements. We are satisfied that the appropriate steps have been taken to provide the District with the completed financial statements. It is the responsibility of management and the School Board to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan. (SEFA)
Finding 2023-003
2023-003 FINDING: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards. Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: As in prior years, we were requested to draft the audited financial statements, and related footnote disclosures and SEFA as part of our regular audit services. Additionally, we were requested to draft the schedule of expenditures of federal awards. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for us to do with organizations of the District’s size. Criteria and Effect: It is our responsibility to inform the School Board this deficiency could result in a material misstatement to the financial statements that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding 2022-003. Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s financial statements. We are satisfied that the appropriate steps have been taken to provide the District with the completed financial statements. It is the responsibility of management and the School Board to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan. (SEFA)
Finding 2023-004
2023-004 FINDING: Audit Adjustments Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During the course of our engagement, we assisted with adjusting SDRS pension activity and we proposed material audit adjustments. The adjustments included: a. Adjusting property tax receivable and unavailable revenue b. Adjusting capital assets of governmental activities c. Adjusting accounts payable and accrued leave d. Adjusting reoffering premium amortization on refunding bonds e. Adjusting federal revenue and receivable for ESSER expenditures incurred but not yet received. Other entries were proposed as part of the audit but were not recorded due to the overall insignificance on the financial statements. Criteria and Effect: These adjustments were not recorded through the District’s existing internal controls, and therefore, resulted in a material misstatement of the District’s financial statements. As in past audits, these adjustments were made by us as part of our audit process. Repeat Finding from Prior Year: Yes, prior year finding 2022-004. Recommendation: We recommend management adjust all significant accounts at year end. This will provide the District with accurate financial information. Specifically: a. Property tax receivable and related revenues should be monitored and adjusted at least annually b. Capital expenditures should be capitalized and depreciated over the useful life of the asset c. Accounts payable and accrued leave balances should be monitored and recorded on an annual basis d. Amortization on refunding bonds should be recorded over the life of the bond e. Federal revenue and receivables should be recorded at year end to reflect federal expenditures not yet reimbursed. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
Finding 2023-004
2023-004 FINDING: Audit Adjustments Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During the course of our engagement, we assisted with adjusting SDRS pension activity and we proposed material audit adjustments. The adjustments included: a. Adjusting property tax receivable and unavailable revenue b. Adjusting capital assets of governmental activities c. Adjusting accounts payable and accrued leave d. Adjusting reoffering premium amortization on refunding bonds e. Adjusting federal revenue and receivable for ESSER expenditures incurred but not yet received. Other entries were proposed as part of the audit but were not recorded due to the overall insignificance on the financial statements. Criteria and Effect: These adjustments were not recorded through the District’s existing internal controls, and therefore, resulted in a material misstatement of the District’s financial statements. As in past audits, these adjustments were made by us as part of our audit process. Repeat Finding from Prior Year: Yes, prior year finding 2022-004. Recommendation: We recommend management adjust all significant accounts at year end. This will provide the District with accurate financial information. Specifically: a. Property tax receivable and related revenues should be monitored and adjusted at least annually b. Capital expenditures should be capitalized and depreciated over the useful life of the asset c. Accounts payable and accrued leave balances should be monitored and recorded on an annual basis d. Amortization on refunding bonds should be recorded over the life of the bond e. Federal revenue and receivables should be recorded at year end to reflect federal expenditures not yet reimbursed. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
Finding 2023-003
2023-003 FINDING: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards. Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: As in prior years, we were requested to draft the audited financial statements, and related footnote disclosures and SEFA as part of our regular audit services. Additionally, we were requested to draft the schedule of expenditures of federal awards. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for us to do with organizations of the District’s size. Criteria and Effect: It is our responsibility to inform the School Board this deficiency could result in a material misstatement to the financial statements that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding 2022-003. Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s financial statements. We are satisfied that the appropriate steps have been taken to provide the District with the completed financial statements. It is the responsibility of management and the School Board to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan. (SEFA)