FAC Explorer

Audit 305718

FY End
2023-06-30
Total Expended
$1.99M
Findings
10
Programs
17
Organization: Hydaburg City School District (AK)
Year: 2023 Accepted: 2024-05-07
Auditor: Altman Rogers & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396138 2023-004 Material Weakness - B
396139 2023-004 Material Weakness - B
396140 2023-005 Material Weakness - M
396141 2023-006 Material Weakness - L
396142 2023-006 Material Weakness - L
972580 2023-004 Material Weakness - B
972581 2023-004 Material Weakness - B
972582 2023-005 Material Weakness - M
972583 2023-006 Material Weakness - L
972584 2023-006 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.184 Safe and Drug-Free Schools and Communities_national Programs $674,222 Yes 3
84.299 Indian Education -- Special Programs for Indian Children $518,736 Yes 2
84.215 Fund for the Improvement of Education $162,256 - 0
84.011 Migrant Education_state Grant Program $50,956 - 0
84.425 Education Stabilization Fund $42,327 - 0
84.356 Alaska Native Educational Programs $40,062 - 0
84.027 Special Education_grants to States $36,013 - 0
84.060 Indian Education_grants to Local Educational Agencies $25,167 - 0
10.855 Distance Learning and Telemedicine Loans and Grants $19,628 - 0
10.553 School Breakfast Program $16,899 - 0
10.555 National School Lunch Program $12,269 - 0
84.010 Title I Grants to Local Educational Agencies $10,000 - 0
84.367 Improving Teacher Quality State Grants $4,412 - 0
90.100 Denali Commission Program $4,321 - 0
84.424 Student Support and Academic Enrichment Program $2,942 - 0
84.358 Rural Education $2,105 - 0
84.173 Special Education_preschool Grants $246 - 0

Contacts

Name Title Type
HA8LNJG2J6C9 Elena Begojevic Auditee
9072853491 Joseph Bergene 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, 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. Hydaburg City 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: Hydaburg City 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 Hydaburg City 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 Hydaburg City School District, it is not intended to and does not present the basic financial statements of Hydaburg City School District.
Title: Note 2. Summary of Significant Accounting Policies 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. Hydaburg City 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: Hydaburg City School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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. Hydaburg City School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3. Reconciliation to Total Expenditures by Assistance Listing Number (ALN) 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. Hydaburg City 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: Hydaburg City School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Agency ALN Grant Amount Federal through Association of Alaska School Boards 84.215N STEPS 145,081 Federal direct program 84.215G SAIL 162,256 Total ALN 84.215 $ 307,337

Finding Details

Finding 2023-004
Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We selected a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 17 of these transactions. We also selected a sample of 11 expenditures transactions for ALN 84.299. The District did not provide supporting documentation for 8 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 2 payroll transactions for ALN 84.184 and 9 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. This is a repeat finding of 2022-008. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs for ALN 84.184 are $35,226 and known quested costs for ALN 84.299 are $126,821 due to no supporting documentation provided. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-004
Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We selected a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 17 of these transactions. We also selected a sample of 11 expenditures transactions for ALN 84.299. The District did not provide supporting documentation for 8 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 2 payroll transactions for ALN 84.184 and 9 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. This is a repeat finding of 2022-008. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs for ALN 84.184 are $35,226 and known quested costs for ALN 84.299 are $126,821 due to no supporting documentation provided. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Lack of Internal Control / Noncompliance over Subrecipient Monitoring Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities ALN: 84.184 Award Numbers: S184G190154-23 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Subrecipient monitoring principles are defined in 2 CFR 200.400. Condition and Context: We selected 2 of the subrecipients that received pass thru funds. The District did not provide supporting documentation ensuring that adequate subreciepient monitoring activities were being followed. Cause: Lack of internal control over subrecipient monitoring. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the subrecipient is not allowed. Questioned Costs: Actual and likely questioned costs estimated to be above the reporting threshold of $25,000. Based on the auditor’s review of program expenditures provided by the District, we estimate that the amount charged by subrecipients to the District was $184,651. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and to ensure that subreipients are appropriately spending passed through federal money. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-006
Finding 2023-006 Lack of Internal Control / Noncompliance over Reporting Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: The School District is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end or by any Office of Management and Budget extended deadlines. Condition and Context: The Form SF-SAC for the fiscal year ended June 30, 2023 was not filed on time. Cause: The audit was not completed in time to file the form. This was due to a delay in closing the books and records as well as not timely remitting audit documentation to the audits. Effect: The District was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: No Recommendation: We recommend the District implement internal control procedures to ensure timely closing of books and records to ensure timely submission of the Form SF-SAC in the future. Management’s Response: Management concurs with this finding. See corrective action plan.
Finding 2023-006
Finding 2023-006 Lack of Internal Control / Noncompliance over Reporting Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: The School District is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end or by any Office of Management and Budget extended deadlines. Condition and Context: The Form SF-SAC for the fiscal year ended June 30, 2023 was not filed on time. Cause: The audit was not completed in time to file the form. This was due to a delay in closing the books and records as well as not timely remitting audit documentation to the audits. Effect: The District was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: No Recommendation: We recommend the District implement internal control procedures to ensure timely closing of books and records to ensure timely submission of the Form SF-SAC in the future. Management’s Response: Management concurs with this finding. See corrective action plan.
Finding 2023-004
Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We selected a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 17 of these transactions. We also selected a sample of 11 expenditures transactions for ALN 84.299. The District did not provide supporting documentation for 8 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 2 payroll transactions for ALN 84.184 and 9 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. This is a repeat finding of 2022-008. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs for ALN 84.184 are $35,226 and known quested costs for ALN 84.299 are $126,821 due to no supporting documentation provided. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-004
Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We selected a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 17 of these transactions. We also selected a sample of 11 expenditures transactions for ALN 84.299. The District did not provide supporting documentation for 8 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 2 payroll transactions for ALN 84.184 and 9 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. This is a repeat finding of 2022-008. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs for ALN 84.184 are $35,226 and known quested costs for ALN 84.299 are $126,821 due to no supporting documentation provided. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Lack of Internal Control / Noncompliance over Subrecipient Monitoring Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities ALN: 84.184 Award Numbers: S184G190154-23 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Subrecipient monitoring principles are defined in 2 CFR 200.400. Condition and Context: We selected 2 of the subrecipients that received pass thru funds. The District did not provide supporting documentation ensuring that adequate subreciepient monitoring activities were being followed. Cause: Lack of internal control over subrecipient monitoring. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the subrecipient is not allowed. Questioned Costs: Actual and likely questioned costs estimated to be above the reporting threshold of $25,000. Based on the auditor’s review of program expenditures provided by the District, we estimate that the amount charged by subrecipients to the District was $184,651. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and to ensure that subreipients are appropriately spending passed through federal money. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-006
Finding 2023-006 Lack of Internal Control / Noncompliance over Reporting Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: The School District is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end or by any Office of Management and Budget extended deadlines. Condition and Context: The Form SF-SAC for the fiscal year ended June 30, 2023 was not filed on time. Cause: The audit was not completed in time to file the form. This was due to a delay in closing the books and records as well as not timely remitting audit documentation to the audits. Effect: The District was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: No Recommendation: We recommend the District implement internal control procedures to ensure timely closing of books and records to ensure timely submission of the Form SF-SAC in the future. Management’s Response: Management concurs with this finding. See corrective action plan.
Finding 2023-006
Finding 2023-006 Lack of Internal Control / Noncompliance over Reporting Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: The School District is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end or by any Office of Management and Budget extended deadlines. Condition and Context: The Form SF-SAC for the fiscal year ended June 30, 2023 was not filed on time. Cause: The audit was not completed in time to file the form. This was due to a delay in closing the books and records as well as not timely remitting audit documentation to the audits. Effect: The District was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: No Recommendation: We recommend the District implement internal control procedures to ensure timely closing of books and records to ensure timely submission of the Form SF-SAC in the future. Management’s Response: Management concurs with this finding. See corrective action plan.