Audit 301080

FY End
2023-06-30
Total Expended
$8.73M
Findings
8
Programs
14
Organization: Yukon Flats School District (AK)
Year: 2023 Accepted: 2024-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
390163 2023-005 Material Weakness Yes L
390164 2023-005 Material Weakness Yes L
390165 2023-006 Material Weakness - AB
390166 2023-006 Material Weakness - AB
966605 2023-005 Material Weakness Yes L
966606 2023-005 Material Weakness Yes L
966607 2023-006 Material Weakness - AB
966608 2023-006 Material Weakness - AB

Contacts

Name Title Type
MZLLA5SB4LM7 Elena Begojevic Auditee
9076622515 Donald L. Hanni Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Yukon Flats School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Yukon Flats School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Yukon Flats School 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 Yukon Flats School District, it is not intended to and does not present the basic financial statements of Yukon Flats School District.
Title: Passed Through Awards Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Yukon Flats School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Yukon Flats School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No amounts were passed through to subrecipients.

Finding Details

Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: Reporting requirements state that quarterly financial reports must be submitted within 30 days of the end of the quarter. The District is required to provide quarterly reimbursement request reports that contain program related costs incurred during the covered period. Condition and Context: During our test of reporting requirements of the program, it was noted that District did not submit any of the required reports timely; or within 30 days of quarter end, therefore not adhering to reporting requirements specified in the grant agreement. Cause: Lack of internal controls related to reporting requirements. Effect: Lack of internal control over compliance with reporting could affect future funding. Repeat Finding: This is a repeat of finding 2022-003, therefore we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management implement stronger internal controls over reporting to ensure they comply with reporting requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.
Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: Reporting requirements state that quarterly financial reports must be submitted within 30 days of the end of the quarter. The District is required to provide quarterly reimbursement request reports that contain program related costs incurred during the covered period. Condition and Context: During our test of reporting requirements of the program, it was noted that District did not submit any of the required reports timely; or within 30 days of quarter end, therefore not adhering to reporting requirements specified in the grant agreement. Cause: Lack of internal controls related to reporting requirements. Effect: Lack of internal control over compliance with reporting could affect future funding. Repeat Finding: This is a repeat of finding 2022-003, therefore we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management implement stronger internal controls over reporting to ensure they comply with reporting requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.
Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Management is responsible for designing, implementing and maintaining internal controls relevant to ensuring that transactions charged to programs follow proper internal control processes. This includes ensuring there is proper supporting documentation for transactions as well as methods to document approval of the cost/activity to determine it is allowable under the funding requirements. Condition and Context: We tested a sample of 25 cash disbursements for compliance with allowable costs/activities for the ESSER funding and noted 2 instances where the transaction lacked supporting documentation and 14 transactions that lacked documentation of proper approval. Cause: Lack of internal controls related to approval and supporting documentation for transactions charged to the grant. Effect: Lack of approval for transactions allows for an environment where unallowable costs could be charged to the grant. Repeat Finding: This is not a repeat finding, however, due to the number of exceptions identified, we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management put internal controls over cash disbursements and improve the approval process to ensure transactions charged to grant funding follow all required laws and regulations. Management Response: Management agrees with this finding, see Corrective Action Plan.
Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Management is responsible for designing, implementing and maintaining internal controls relevant to ensuring that transactions charged to programs follow proper internal control processes. This includes ensuring there is proper supporting documentation for transactions as well as methods to document approval of the cost/activity to determine it is allowable under the funding requirements. Condition and Context: We tested a sample of 25 cash disbursements for compliance with allowable costs/activities for the ESSER funding and noted 2 instances where the transaction lacked supporting documentation and 14 transactions that lacked documentation of proper approval. Cause: Lack of internal controls related to approval and supporting documentation for transactions charged to the grant. Effect: Lack of approval for transactions allows for an environment where unallowable costs could be charged to the grant. Repeat Finding: This is not a repeat finding, however, due to the number of exceptions identified, we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management put internal controls over cash disbursements and improve the approval process to ensure transactions charged to grant funding follow all required laws and regulations. Management Response: Management agrees with this finding, see Corrective Action Plan.
Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: Reporting requirements state that quarterly financial reports must be submitted within 30 days of the end of the quarter. The District is required to provide quarterly reimbursement request reports that contain program related costs incurred during the covered period. Condition and Context: During our test of reporting requirements of the program, it was noted that District did not submit any of the required reports timely; or within 30 days of quarter end, therefore not adhering to reporting requirements specified in the grant agreement. Cause: Lack of internal controls related to reporting requirements. Effect: Lack of internal control over compliance with reporting could affect future funding. Repeat Finding: This is a repeat of finding 2022-003, therefore we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management implement stronger internal controls over reporting to ensure they comply with reporting requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.
Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: Reporting requirements state that quarterly financial reports must be submitted within 30 days of the end of the quarter. The District is required to provide quarterly reimbursement request reports that contain program related costs incurred during the covered period. Condition and Context: During our test of reporting requirements of the program, it was noted that District did not submit any of the required reports timely; or within 30 days of quarter end, therefore not adhering to reporting requirements specified in the grant agreement. Cause: Lack of internal controls related to reporting requirements. Effect: Lack of internal control over compliance with reporting could affect future funding. Repeat Finding: This is a repeat of finding 2022-003, therefore we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management implement stronger internal controls over reporting to ensure they comply with reporting requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.
Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Management is responsible for designing, implementing and maintaining internal controls relevant to ensuring that transactions charged to programs follow proper internal control processes. This includes ensuring there is proper supporting documentation for transactions as well as methods to document approval of the cost/activity to determine it is allowable under the funding requirements. Condition and Context: We tested a sample of 25 cash disbursements for compliance with allowable costs/activities for the ESSER funding and noted 2 instances where the transaction lacked supporting documentation and 14 transactions that lacked documentation of proper approval. Cause: Lack of internal controls related to approval and supporting documentation for transactions charged to the grant. Effect: Lack of approval for transactions allows for an environment where unallowable costs could be charged to the grant. Repeat Finding: This is not a repeat finding, however, due to the number of exceptions identified, we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management put internal controls over cash disbursements and improve the approval process to ensure transactions charged to grant funding follow all required laws and regulations. Management Response: Management agrees with this finding, see Corrective Action Plan.
Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Management is responsible for designing, implementing and maintaining internal controls relevant to ensuring that transactions charged to programs follow proper internal control processes. This includes ensuring there is proper supporting documentation for transactions as well as methods to document approval of the cost/activity to determine it is allowable under the funding requirements. Condition and Context: We tested a sample of 25 cash disbursements for compliance with allowable costs/activities for the ESSER funding and noted 2 instances where the transaction lacked supporting documentation and 14 transactions that lacked documentation of proper approval. Cause: Lack of internal controls related to approval and supporting documentation for transactions charged to the grant. Effect: Lack of approval for transactions allows for an environment where unallowable costs could be charged to the grant. Repeat Finding: This is not a repeat finding, however, due to the number of exceptions identified, we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management put internal controls over cash disbursements and improve the approval process to ensure transactions charged to grant funding follow all required laws and regulations. Management Response: Management agrees with this finding, see Corrective Action Plan.