FAC Explorer

Audit 305889

FY End
2023-06-30
Total Expended
$5.31M
Findings
6
Programs
11
Organization: Fostoria City School District (OH)
Year: 2023 Accepted: 2024-05-09
Auditor: Keith Faber Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396238 2023-002 Material Weakness - F
396239 2023-002 Material Weakness - F
396240 2023-002 Material Weakness - F
972680 2023-002 Material Weakness - F
972681 2023-002 Material Weakness - F
972682 2023-002 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.38M Yes 1
84.010 Title I Grants to Local Educational Agencies $924,827 - 0
10.553 School Breakfast Program $242,886 - 0
84.367 Improving Teacher Quality State Grants $112,749 - 0
84.027 Special Education_grants to States $79,919 Yes 0
84.424 Student Support and Academic Enrichment Program $78,912 - 0
10.555 National School Lunch Program $71,906 - 0
84.358 Rural Education $54,471 - 0
10.559 Summer Food Service Program for Children $32,552 - 0
84.173 Special Education_preschool Grants $7,308 Yes 0
10.649 Pandemic Ebt Administrative Costs $3,135 - 0

Contacts

Name Title Type
CKQ9G63CT6J5 Dan Russomanno Auditee
4194364162 Jonathan A. Lawless, Cfe Auditor
No contacts on file

Notes to SEFA

Title: 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 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 Fostoria City School District, Seneca County, Ohio (the 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 District, it is not intended to and does not present the financial position or changes in net position of the District.
Title: 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 District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the District assumes it expends federal monies first.
Title: 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 District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District reports commodities consumed on the Schedule at the entitlement value. The District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.
Title: 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 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 the Ohio Department of Education’s consent, schools can transfer unobligated amounts to the subsequent fiscal year’s program. The District transferred the following amounts from 2023 to 2024 programs: Title I Grants to Local Educational Agencies AL Number 84.010A $46,465; Special Education - Grants to States AL Number 84.027A $135,083; Special Education Preschool Grants AL Number 84.173A $2; Student Support and Academic Enrichment Program AL Number 84.424A $9,592; ARP ESSER Education Stabilization Fund (ESSER III) AL Number 84.425U $3,616,105

Finding Details

Finding 2023-002
Finding Number: 2023-002 AL Number and Title: Education Stabilization Fund – AL# 84.425 Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d) which requires that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. 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, 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. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 4. Adequate maintenance procedures must be developed to keep the property in good condition. 5. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. The School District purchased 6 buses at a total amount of $643,208 with funds from the ARP ESSER grant and due to deficiencies in inventory controls, failed to add the assets to the District inventory system. The lack of maintaining the required property records not only violates federal grant requirements but also increases the risk of noncompliance with grant requirements going undetected in a timely manner. The School District should review the Equipment Inventory System and make the proper adjustments to include all assets purchased with ARP ESSER Funds. Officials’ Response: See corrective action plan.
Finding 2023-002
Finding Number: 2023-002 AL Number and Title: Education Stabilization Fund – AL# 84.425 Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d) which requires that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. 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, 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. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 4. Adequate maintenance procedures must be developed to keep the property in good condition. 5. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. The School District purchased 6 buses at a total amount of $643,208 with funds from the ARP ESSER grant and due to deficiencies in inventory controls, failed to add the assets to the District inventory system. The lack of maintaining the required property records not only violates federal grant requirements but also increases the risk of noncompliance with grant requirements going undetected in a timely manner. The School District should review the Equipment Inventory System and make the proper adjustments to include all assets purchased with ARP ESSER Funds. Officials’ Response: See corrective action plan.
Finding 2023-002
Finding Number: 2023-002 AL Number and Title: Education Stabilization Fund – AL# 84.425 Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d) which requires that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. 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, 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. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 4. Adequate maintenance procedures must be developed to keep the property in good condition. 5. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. The School District purchased 6 buses at a total amount of $643,208 with funds from the ARP ESSER grant and due to deficiencies in inventory controls, failed to add the assets to the District inventory system. The lack of maintaining the required property records not only violates federal grant requirements but also increases the risk of noncompliance with grant requirements going undetected in a timely manner. The School District should review the Equipment Inventory System and make the proper adjustments to include all assets purchased with ARP ESSER Funds. Officials’ Response: See corrective action plan.
Finding 2023-002
Finding Number: 2023-002 AL Number and Title: Education Stabilization Fund – AL# 84.425 Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d) which requires that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. 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, 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. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 4. Adequate maintenance procedures must be developed to keep the property in good condition. 5. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. The School District purchased 6 buses at a total amount of $643,208 with funds from the ARP ESSER grant and due to deficiencies in inventory controls, failed to add the assets to the District inventory system. The lack of maintaining the required property records not only violates federal grant requirements but also increases the risk of noncompliance with grant requirements going undetected in a timely manner. The School District should review the Equipment Inventory System and make the proper adjustments to include all assets purchased with ARP ESSER Funds. Officials’ Response: See corrective action plan.
Finding 2023-002
Finding Number: 2023-002 AL Number and Title: Education Stabilization Fund – AL# 84.425 Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d) which requires that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. 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, 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. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 4. Adequate maintenance procedures must be developed to keep the property in good condition. 5. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. The School District purchased 6 buses at a total amount of $643,208 with funds from the ARP ESSER grant and due to deficiencies in inventory controls, failed to add the assets to the District inventory system. The lack of maintaining the required property records not only violates federal grant requirements but also increases the risk of noncompliance with grant requirements going undetected in a timely manner. The School District should review the Equipment Inventory System and make the proper adjustments to include all assets purchased with ARP ESSER Funds. Officials’ Response: See corrective action plan.
Finding 2023-002
Finding Number: 2023-002 AL Number and Title: Education Stabilization Fund – AL# 84.425 Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d) which requires that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. 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, 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. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 4. Adequate maintenance procedures must be developed to keep the property in good condition. 5. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. The School District purchased 6 buses at a total amount of $643,208 with funds from the ARP ESSER grant and due to deficiencies in inventory controls, failed to add the assets to the District inventory system. The lack of maintaining the required property records not only violates federal grant requirements but also increases the risk of noncompliance with grant requirements going undetected in a timely manner. The School District should review the Equipment Inventory System and make the proper adjustments to include all assets purchased with ARP ESSER Funds. Officials’ Response: See corrective action plan.