FAC Explorer

Audit 307588

FY End
2023-06-30
Total Expended
$1.76M
Findings
4
Programs
10
Organization: National Trail Local School District (OH)
Year: 2023 Accepted: 2024-05-30
Auditor: Ohio Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398988 2023-002 Material Weakness - F
398989 2023-002 Material Weakness - F
975430 2023-002 Material Weakness - F
975431 2023-002 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $759,508 Yes 1
10.555 National School Lunch Program $267,163 - 0
84.010 Title I Grants to Local Educational Agencies $257,366 - 0
10.553 School Breakfast Program $97,071 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $50,417 - 0
84.367 Supporting Effective Instruction State Grants $40,899 - 0
84.424 Student Support and Academic Enrichment Program $18,378 - 0
84.027 Special Education_grants to States $16,374 - 0
84.173 Special Education_preschool Grants $5,842 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
TW1LTL3G9NE9 Kerry Borger Auditee
9374370333 Katie Eddy Auditor
No contacts on file

Notes to SEFA

Title: Note A - 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 School 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 National Trail Local School District (the School District) under programs of the federal government for the fiscal 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 School District, it is not intended to and does not present the financial position or changes in net position of the School District.
Title: Note D - 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 School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the School District assumes it expends federal monies first.
Title: Note B - Summary of Significant Accounting Policies 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 School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: Note C - Indirect Cost Rate 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 School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
2 CFR 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.313 (d) which states 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 FAIN), who holds title, the acquisition date, and 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 sale 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 two 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 used federal Education Stabilization Funds for capital outlay expenditures for a restroom upgrade of $222,512. Due to lack of policies and procedures, the School District failed to record the upgrade in their capital asset system. Furthermore, the School District also failed to perform a physical inventory and reconcile the property records for fiscal year 2023. Noncompliance with the requirements of Federal grants may result in the loss of current or future federal funding and possible questioned costs in future audits. Also, failure to include equipment and capital assets purchases on the School District asset listing could result in misappropriation of the equipment. The School District should establish and implement policies and procedures over equipment and real property paid for from Federal grants to ensure that such assets with an acquisition cost which equals or exceeds the lesser of the School District’s capitalization threshold or $5,000, are added and maintained in the capital asset records until disposition. Additionally, the School District should implement procedures to verify that all equipment is recorded, and the required physical inventory is completed at least once every two years.
Finding 2023-002
2 CFR 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.313 (d) which states 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 FAIN), who holds title, the acquisition date, and 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 sale 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 two 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 used federal Education Stabilization Funds for capital outlay expenditures for a restroom upgrade of $222,512. Due to lack of policies and procedures, the School District failed to record the upgrade in their capital asset system. Furthermore, the School District also failed to perform a physical inventory and reconcile the property records for fiscal year 2023. Noncompliance with the requirements of Federal grants may result in the loss of current or future federal funding and possible questioned costs in future audits. Also, failure to include equipment and capital assets purchases on the School District asset listing could result in misappropriation of the equipment. The School District should establish and implement policies and procedures over equipment and real property paid for from Federal grants to ensure that such assets with an acquisition cost which equals or exceeds the lesser of the School District’s capitalization threshold or $5,000, are added and maintained in the capital asset records until disposition. Additionally, the School District should implement procedures to verify that all equipment is recorded, and the required physical inventory is completed at least once every two years.
Finding 2023-002
2 CFR 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.313 (d) which states 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 FAIN), who holds title, the acquisition date, and 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 sale 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 two 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 used federal Education Stabilization Funds for capital outlay expenditures for a restroom upgrade of $222,512. Due to lack of policies and procedures, the School District failed to record the upgrade in their capital asset system. Furthermore, the School District also failed to perform a physical inventory and reconcile the property records for fiscal year 2023. Noncompliance with the requirements of Federal grants may result in the loss of current or future federal funding and possible questioned costs in future audits. Also, failure to include equipment and capital assets purchases on the School District asset listing could result in misappropriation of the equipment. The School District should establish and implement policies and procedures over equipment and real property paid for from Federal grants to ensure that such assets with an acquisition cost which equals or exceeds the lesser of the School District’s capitalization threshold or $5,000, are added and maintained in the capital asset records until disposition. Additionally, the School District should implement procedures to verify that all equipment is recorded, and the required physical inventory is completed at least once every two years.
Finding 2023-002
2 CFR 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.313 (d) which states 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 FAIN), who holds title, the acquisition date, and 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 sale 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 two 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 used federal Education Stabilization Funds for capital outlay expenditures for a restroom upgrade of $222,512. Due to lack of policies and procedures, the School District failed to record the upgrade in their capital asset system. Furthermore, the School District also failed to perform a physical inventory and reconcile the property records for fiscal year 2023. Noncompliance with the requirements of Federal grants may result in the loss of current or future federal funding and possible questioned costs in future audits. Also, failure to include equipment and capital assets purchases on the School District asset listing could result in misappropriation of the equipment. The School District should establish and implement policies and procedures over equipment and real property paid for from Federal grants to ensure that such assets with an acquisition cost which equals or exceeds the lesser of the School District’s capitalization threshold or $5,000, are added and maintained in the capital asset records until disposition. Additionally, the School District should implement procedures to verify that all equipment is recorded, and the required physical inventory is completed at least once every two years.