FAC Explorer

Audit 300047

FY End
2023-06-30
Total Expended
$5.48M
Findings
4
Programs
20
Organization: Circle of Nations School INC (ND)
Year: 2023 Accepted: 2024-03-28
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388276 2023-008 Material Weakness - AB
388277 2023-007 Material Weakness Yes AB
964718 2023-008 Material Weakness - AB
964719 2023-007 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
15.042 Indian School Equalization Program $1.82M Yes 1
15.047 Indian Education Facilities, Operations, and Maintenance $1.36M Yes 0
15.046 Administrative Cost Grants for Indian Schools $648,490 Yes 1
84.027 Special Education_grants to States $347,630 - 0
15.044 Indian Schools_student Transportation $214,527 - 0
84.425 Education Stabilization Fund $169,285 - 0
84.010 Title I Grants to Local Educational Agencies $157,906 - 0
84.060 Indian Education_grants to Local Educational Agencies $60,210 - 0
15.151 Education Program Enhancements $41,460 - 0
84.424 Student Support and Academic Enrichment Program $31,100 - 0
84.371 Striving Readers $26,000 - 0
84.196 Education for Homeless Children and Youth $22,443 - 0
10.553 School Breakfast Program $21,070 - 0
84.336 Teacher Quality Partnership Grants $12,344 - 0
10.555 National School Lunch Program $11,219 - 0
15.149 Focus on Student Achievement Project $6,560 - 0
10.582 Fresh Fruit and Vegetable Program $2,262 - 0
84.358 Rural Education $1,100 - 0
10.560 State Administrative Expenses for Child Nutrition $990 - 0
84.287 Twenty-First Century Community Learning Centers $661 - 0

Contacts

Name Title Type
K4ZERNMLBKY3 Jorge Sanchez Auditee
7016727336 Derek Flanagan Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1-BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Circle of Nations School, Inc. (the School) under programs of the federal government for the year ended June 30, 2023. The information 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 School, it is not intended to and does not present the financial position or changes in net assets or cash flows of the School.
Title: NOTE 2- SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10% de minimis cost rate. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
Title: NOTE 3- INDIRECT COST RATE Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10% de minimis cost rate. The District has not elected to use the 10% de minimis cost rate.

Finding Details

Finding 2023-008
Department of Interior Federal Financial Assistance Listing 15.042 Indian School Equalization Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance and Immaterial Instance of Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – In our testing of allowable costs and activities we noted five instances where payroll expenditures were not paid in accordance with the employment letter. Cause – Procedures are not in place to adequately identify unallowable costs or activities. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non-compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A nonstatistical sample of 60 transactions out of 4,205 total transactions were selected for testing, which accounted for $98,689 of $1,818,900 of federal program expenditures. Repeat Finding from Prior Years – No. Recommendation – The School should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Views of Responsible Officials – There is no disagreement with the audit finding
Finding 2023-007
Department of the Interior Federal Financial Assistance Listing 15.046 Administrative Cost Grants for Indian Schools Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance and Immaterial Instance of Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – In our testing of allowable costs and activities we noted four instances where payroll expenditures were not paid in accordance with the employment letter. Cause – Procedures are not in place to adequately identify unallowable costs or activities. Effect – A lack of internal controls over allowable costs and activities could result in the improper use of federal funds and non-compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A nonstatistical sample of 60 transactions out of 821 total transactions were selected for testing, which accounted for $129,328 of $648,490 of federal program expenditures. Repeat Finding from Prior Years – Yes, 2022-007 Recommendation – The School should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Views of Responsible Officials – There is no disagreement with the audit finding.
Finding 2023-008
Department of Interior Federal Financial Assistance Listing 15.042 Indian School Equalization Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance and Immaterial Instance of Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – In our testing of allowable costs and activities we noted five instances where payroll expenditures were not paid in accordance with the employment letter. Cause – Procedures are not in place to adequately identify unallowable costs or activities. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non-compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A nonstatistical sample of 60 transactions out of 4,205 total transactions were selected for testing, which accounted for $98,689 of $1,818,900 of federal program expenditures. Repeat Finding from Prior Years – No. Recommendation – The School should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Views of Responsible Officials – There is no disagreement with the audit finding
Finding 2023-007
Department of the Interior Federal Financial Assistance Listing 15.046 Administrative Cost Grants for Indian Schools Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance and Immaterial Instance of Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – In our testing of allowable costs and activities we noted four instances where payroll expenditures were not paid in accordance with the employment letter. Cause – Procedures are not in place to adequately identify unallowable costs or activities. Effect – A lack of internal controls over allowable costs and activities could result in the improper use of federal funds and non-compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A nonstatistical sample of 60 transactions out of 821 total transactions were selected for testing, which accounted for $129,328 of $648,490 of federal program expenditures. Repeat Finding from Prior Years – Yes, 2022-007 Recommendation – The School should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Views of Responsible Officials – There is no disagreement with the audit finding.