Audit 298190

FY End
2023-06-30
Total Expended
$4.45M
Findings
6
Programs
13
Organization: Wellston City School District (OH)
Year: 2023 Accepted: 2024-03-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
385082 2023-001 - - F
385083 2023-001 - - F
385084 2023-001 - - F
961524 2023-001 - - F
961525 2023-001 - - F
961526 2023-001 - - F

Contacts

Name Title Type
HBKPQMN7D8L3 Tami Downard Auditee
7403842152 Denise Blair, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Wellston City School District (the School District) under programs of the federal government for the year ended June 30, 2023. The information on this Schedule is prepared 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 School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the School District
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
Title: NOTE C – INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE D - CHILD NUTRITION CLUSTER Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the School District assumes it expends federal monies first.
Title: NOTE E – FOOD DONATION PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District reports commodities consumed on the Schedule at the entitlement value. The School District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.
Title: NOTE F - TRANSFERS BETWEEN PROGRAM YEARS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal regulations require schools to obligate certain federal awards by June 30. However, with ODE’s consent, schools can transfer unobligated amounts to the subsequent fiscal year’s program. The School District transferred the following amounts from 2022 to 2023 programs:

Finding Details

2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1) which states, that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. School District Policy po7450 states that "equipment" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus, or a set of articles which retains its shape and appearance with use, is nonexpendable, costs at least $300 to replace as a single unit and does not lose its identity when incorporated into a more complex unit. When defining supplies for inventory purposes, no items will be counted whose total value is less than $500. The School District purchased 93 BenQ boards totaling $ 247,456; shelving set units totaling $5,792; and table and stools in the amount of $2,180 using their American Rescue Plan Education Stabilization Fund AL #84.425U federal funding. The purchase was coded to supplies instead of equipment and thus was not flagged in the system to add to inventory. Due to lack of proper internal controls over Federal Grants management, the School District failed to flag and record these purchases in their capital asset records. The Treasurer should ensure all capital acquisitions are added to the capital asset listing and include all required information in the listing, noting the assets were purchased with federal funds.
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1) which states, that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. School District Policy po7450 states that "equipment" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus, or a set of articles which retains its shape and appearance with use, is nonexpendable, costs at least $300 to replace as a single unit and does not lose its identity when incorporated into a more complex unit. When defining supplies for inventory purposes, no items will be counted whose total value is less than $500. The School District purchased 93 BenQ boards totaling $ 247,456; shelving set units totaling $5,792; and table and stools in the amount of $2,180 using their American Rescue Plan Education Stabilization Fund AL #84.425U federal funding. The purchase was coded to supplies instead of equipment and thus was not flagged in the system to add to inventory. Due to lack of proper internal controls over Federal Grants management, the School District failed to flag and record these purchases in their capital asset records. The Treasurer should ensure all capital acquisitions are added to the capital asset listing and include all required information in the listing, noting the assets were purchased with federal funds.
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1) which states, that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. School District Policy po7450 states that "equipment" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus, or a set of articles which retains its shape and appearance with use, is nonexpendable, costs at least $300 to replace as a single unit and does not lose its identity when incorporated into a more complex unit. When defining supplies for inventory purposes, no items will be counted whose total value is less than $500. The School District purchased 93 BenQ boards totaling $ 247,456; shelving set units totaling $5,792; and table and stools in the amount of $2,180 using their American Rescue Plan Education Stabilization Fund AL #84.425U federal funding. The purchase was coded to supplies instead of equipment and thus was not flagged in the system to add to inventory. Due to lack of proper internal controls over Federal Grants management, the School District failed to flag and record these purchases in their capital asset records. The Treasurer should ensure all capital acquisitions are added to the capital asset listing and include all required information in the listing, noting the assets were purchased with federal funds.
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1) which states, that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. School District Policy po7450 states that "equipment" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus, or a set of articles which retains its shape and appearance with use, is nonexpendable, costs at least $300 to replace as a single unit and does not lose its identity when incorporated into a more complex unit. When defining supplies for inventory purposes, no items will be counted whose total value is less than $500. The School District purchased 93 BenQ boards totaling $ 247,456; shelving set units totaling $5,792; and table and stools in the amount of $2,180 using their American Rescue Plan Education Stabilization Fund AL #84.425U federal funding. The purchase was coded to supplies instead of equipment and thus was not flagged in the system to add to inventory. Due to lack of proper internal controls over Federal Grants management, the School District failed to flag and record these purchases in their capital asset records. The Treasurer should ensure all capital acquisitions are added to the capital asset listing and include all required information in the listing, noting the assets were purchased with federal funds.
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1) which states, that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. School District Policy po7450 states that "equipment" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus, or a set of articles which retains its shape and appearance with use, is nonexpendable, costs at least $300 to replace as a single unit and does not lose its identity when incorporated into a more complex unit. When defining supplies for inventory purposes, no items will be counted whose total value is less than $500. The School District purchased 93 BenQ boards totaling $ 247,456; shelving set units totaling $5,792; and table and stools in the amount of $2,180 using their American Rescue Plan Education Stabilization Fund AL #84.425U federal funding. The purchase was coded to supplies instead of equipment and thus was not flagged in the system to add to inventory. Due to lack of proper internal controls over Federal Grants management, the School District failed to flag and record these purchases in their capital asset records. The Treasurer should ensure all capital acquisitions are added to the capital asset listing and include all required information in the listing, noting the assets were purchased with federal funds.
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1) which states, that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. School District Policy po7450 states that "equipment" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus, or a set of articles which retains its shape and appearance with use, is nonexpendable, costs at least $300 to replace as a single unit and does not lose its identity when incorporated into a more complex unit. When defining supplies for inventory purposes, no items will be counted whose total value is less than $500. The School District purchased 93 BenQ boards totaling $ 247,456; shelving set units totaling $5,792; and table and stools in the amount of $2,180 using their American Rescue Plan Education Stabilization Fund AL #84.425U federal funding. The purchase was coded to supplies instead of equipment and thus was not flagged in the system to add to inventory. Due to lack of proper internal controls over Federal Grants management, the School District failed to flag and record these purchases in their capital asset records. The Treasurer should ensure all capital acquisitions are added to the capital asset listing and include all required information in the listing, noting the assets were purchased with federal funds.