FAC Explorer

Audit 314477

FY End
2023-06-30
Total Expended
$8.23M
Findings
2
Programs
15
Organization: North Bolivar Consolidated School District (MS)
Year: 2023 Accepted: 2024-07-05
Auditor: Cunningham CPAS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
477863 2023-002 Material Weakness Yes A
1054305 2023-002 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $3.74M Yes 0
84.010 Title I Grants to Local Educational Agencies $1.21M - 0
10.555 National School Lunch Program $675,126 - 0
84.027 Special Education_grants to States $388,455 - 0
10.553 School Breakfast Program $230,485 - 0
84.367 Improving Teacher Quality State Grants $122,250 - 0
84.424 Student Support and Academic Enrichment Program $77,456 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $35,820 - 0
84.027 Arp - Idea Part B $30,981 - 0
84.173 Special Education_preschool Grants $29,696 - 0
84.358 Rural Education $29,369 - 0
10.559 Summer Food Service Program for Children $28,392 - 0
84.048 Career and Technical Education -- Basic Grants to States $26,529 - 0
84.173 Arp - Preschool Grants $3,859 - 0
93.778 Medical Assistance Program $496 - 0

Contacts

Name Title Type
ST9KQ91JKK21 Kennish Harris Auditee
6623393781 Joel B Cunningham III Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Schedule of Expenditures of Federal Awards (1) Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the North Bolivar Consolidated 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 the North Bolivar Consolidated School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the North Bolivar Consolidated School District. (2) Summary of Significant 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. (3) Indirect Cost Rate The North Bolivar Consolidated School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. (4) Noncash Awards Donated commodities of $72,532 are included in the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: The North Bolivar Consolidated School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Material Weakness: Finding 2023-001: CRITERIA: Management is responsible for establishing an internal control system that ensures strong financial accountability and safeguarding of assets. A critical aspect of financial management is the maintenance of accurate accounting records. CONDITION: (1) During our testing of cutoff surrounding accounts payable, we noted multiple instances of expenditures that should have been accrued in fiscal year 2023 but were not. In addition, we noted errors in recording retainage payable on construction contracts. These errors, totaling $1,095,264, were corrected by audit adjustment. (2) During our testing of capital assets, we noted the district is not effectively tracking and accounting for completed and ongoing construction projects. In addition, we noted the district is not properly maintaining the subsidiary ledger and reconciling the asset ledger to the general ledger and other underlying accounting records. There were material corrections made by the auditor. CAUSE OF CONDITION: The cause is a result of not properly implementing a designed system of accounting and internal controls. EFFECT OF CONDITION: The effect of this condition could result in the financial statements being materially misstated and misappropriation of assets. RECOMMENDATION: It is recommended that the district implement policies or procedures to establish an internal control system that will ensure strong financial accountability and accurate accounting records. VIEWS OF RESPONSIBLE OFFICIALS: Management will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and accurate accounting records.
Finding 2023-002
Material Weakness: Finding 2023-001: CRITERIA: Management is responsible for establishing an internal control system that ensures strong financial accountability and safeguarding of assets. A critical aspect of financial management is the maintenance of accurate accounting records. CONDITION: (1) During our testing of cutoff surrounding accounts payable, we noted multiple instances of expenditures that should have been accrued in fiscal year 2023 but were not. In addition, we noted errors in recording retainage payable on construction contracts. These errors, totaling $1,095,264, were corrected by audit adjustment. (2) During our testing of capital assets, we noted the district is not effectively tracking and accounting for completed and ongoing construction projects. In addition, we noted the district is not properly maintaining the subsidiary ledger and reconciling the asset ledger to the general ledger and other underlying accounting records. There were material corrections made by the auditor. CAUSE OF CONDITION: The cause is a result of not properly implementing a designed system of accounting and internal controls. EFFECT OF CONDITION: The effect of this condition could result in the financial statements being materially misstated and misappropriation of assets. RECOMMENDATION: It is recommended that the district implement policies or procedures to establish an internal control system that will ensure strong financial accountability and accurate accounting records. VIEWS OF RESPONSIBLE OFFICIALS: Management will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and accurate accounting records.