Audit 304193

FY End
2023-08-31
Total Expended
$6.75M
Findings
2
Programs
22
Year: 2023 Accepted: 2024-04-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
394227 2023-003 Significant Deficiency - N
970669 2023-003 Significant Deficiency - N

Contacts

Name Title Type
DJR5XRD843Y9 Reynaldo Robles Auditee
9563473921 Matthew Montemayor Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – 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 and OMB Compliance Supplement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended August 31, 2023, the District did not elect to use this rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lyford Consolidated Independent School District. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: NOTE 4 – SUB‐RECIPIENTS 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 and OMB Compliance Supplement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended August 31, 2023, the District did not elect to use this rate. During the fiscal year ended August 31, 2023, the District had no sub‐recipients.
Title: NOTE 5 – FEDERAL LOANS AND LOAN GUARANTEES 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 and OMB Compliance Supplement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended August 31, 2023, the District did not elect to use this rate. During the year ended August 31, 2023, the District had no outstanding federal loans payable or loan guarantees.
Title: NOTE 6 – FEDERALLY FUNDED INSURANCE 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 and OMB Compliance Supplement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended August 31, 2023, the District did not elect to use this rate. During the year ended August 31, 2023, the District had no federally funded insurance.
Title: NOTE 7 – NONCASH 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 and OMB Compliance Supplement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended August 31, 2023, the District did not elect to use this rate. During the year ended August 31, 2023, the District received $82,922 as noncash‐assistance under the National School Lunch Program.
Title: NOTE 8 – PROGRAM REPORTING 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 and OMB Compliance Supplement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended August 31, 2023, the District did not elect to use this rate. SHARS and E‐rate are accounted for in the general fund. The National School Lunch Program‐ cash and noncash assistance and the School Breakfast Program are accounted for in the Child Nutrition Program. Expenditures are not specifically attributable to these revenues and are shown on this schedule in an amount equal to revenue for balancing purposes only. Reconciliation Total expenditures of federal awards, per Exhibit K‐1 $6,753,708 General fund – Federal Revenue School Health and Related Services (SHARS) revenue 96,535 Total Federal Revenues, per Exhibit C‐3 $6,850,243

Finding Details

Reference Number: 2023‐003 Annual Report Card, High School Graduation rate compliance ALN 84.010 Title I Grants for Local Education Agencies Pass through identifying number: 23610101245902 Award Year: 2022‐2023 Federal Agency: U.S. Department of Education Passed through State Department of Education Criteria: Non‐federal entities are required to establish and maintain effective internal controls over compliance in accordance with 2 CFR 200.303(a). ESEA section 8101(25)(B), states: (B) COHORT REMOVAL—To remove a student from a cohort, a school or local educational agency shall require documentation, or obtain documentation from the State educational agency, to confirm that the student has transferred out, emigrated to another country, or transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the District must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. Condition Found: During our review of students that were removed from the adjusted cohort, one student removal was not supported by appropriate written documentation. Cause: The documentation regarding removing the student from the adjusted cohort was not maintained. Turnover in the District PEIMS director position caused difficulties in the District locating the appropriate written documentation. Effect: The District could fail to appropriately support removing students from the adjusted cohort. Questioned Cost: $0 Recommendation: We recommend the District to maintain written documentation each time a student is removed from the adjusted cohort and place within the student file for easy access. Views of Responsible Officials: Management agrees with the findings.
Reference Number: 2023‐003 Annual Report Card, High School Graduation rate compliance ALN 84.010 Title I Grants for Local Education Agencies Pass through identifying number: 23610101245902 Award Year: 2022‐2023 Federal Agency: U.S. Department of Education Passed through State Department of Education Criteria: Non‐federal entities are required to establish and maintain effective internal controls over compliance in accordance with 2 CFR 200.303(a). ESEA section 8101(25)(B), states: (B) COHORT REMOVAL—To remove a student from a cohort, a school or local educational agency shall require documentation, or obtain documentation from the State educational agency, to confirm that the student has transferred out, emigrated to another country, or transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the District must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. Condition Found: During our review of students that were removed from the adjusted cohort, one student removal was not supported by appropriate written documentation. Cause: The documentation regarding removing the student from the adjusted cohort was not maintained. Turnover in the District PEIMS director position caused difficulties in the District locating the appropriate written documentation. Effect: The District could fail to appropriately support removing students from the adjusted cohort. Questioned Cost: $0 Recommendation: We recommend the District to maintain written documentation each time a student is removed from the adjusted cohort and place within the student file for easy access. Views of Responsible Officials: Management agrees with the findings.