FAC Explorer

Audit 315988

FY End
2023-06-30
Total Expended
$2.15M
Findings
4
Programs
9
Organization: Frazer School District (MT)
Year: 2023 Accepted: 2024-07-25
Auditor: Denning Downey and Assoicates Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479458 2023-004 Material Weakness - L
479459 2023-005 - - L
1055900 2023-004 Material Weakness - L
1055901 2023-005 - - L

Programs

ALN Program Spent Major Findings
84.041 Impact Aid $1.48M Yes 2
84.010 Title I Grants to Local Educational Agencies $61,573 - 0
84.060 Indian Education_grants to Local Educational Agencies $26,273 - 0
10.553 School Breakfast Program $15,432 - 0
10.555 National School Lunch Program $8,432 - 0
10.559 Summer Food Service Program for Children $6,522 - 0
84.048 Career and Technical Education -- Basic Grants to States $2,524 - 0
84.425 Education Stabilization Fund $927 - 0
10.558 Child and Adult Care Food Program $315 - 0

Contacts

Name Title Type
Q4GKFT9C6M33 Taryn Hauk Auditee
4066952241 Robert Denning Auditor
No contacts on file

Notes to SEFA

Title: Value of Federal Awards Expended in the form of Noncash Assistance Accounting Policies: Basis of Presentation and Significant Accounting Policies The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Frazer Public Schools, Valley County, Montana. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Frazer Public Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Frazer Public Schools. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in preparation of the basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Gui ance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Frazer Public Schools has elected not to use the 10 percent de Minimis indirect cost rate as provided in Sec. 200.414 Indirect Costs under Uniform Guidance. Food Commodities value equals the fair value at the time of the receipt $8,432.

Finding Details

Finding 2023-004
2023-004 Impact Aid Application Controls Federal Program: Impact Aid CFDA Title: Impact Aid CFDA Number: 84.041 Federal Award Number and Year: Name of Federal Agency: Department of Education Condition: The District does not have an internal control system in place to ensure that supporting documentation is maintained to support the Impact Aid Applications for the elementary and high school. Context: We requested the supporting documentation to test the compliance of reported students counts on the elementary and high school impact aid applications, but the District had a difficult time providing the supporting application and trust land documentation to support the application. The verification of the trust land students from the Tribe had to be provided again from the trip to support spreadsheets of the students and their addresses. Criteria: (1) 2 CFR section 200.303 requires that the District establish and maintain an effective internal control system over the federal award to provide reasonable assurance that the District is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the federal award. (2) Application for Impact Aid - Section 7003 (OMB No. 1810-0687) - Each year an LEA must submit this application, which provides the following information: counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. This form is in the Impact Aid Grant System, which does not have a public link, therefore school districts will need to provide a copy to the auditor. Effect: The District risk of noncompliance with federal programs increases if documentation is not maintained to support those compliance requirements. Cause: The District did not establish and maintain an adequate internal control system ensure that supporting documentation is maintained to support the membership counts of the children who live on Indian lands. Recommendation: We recommend that the District review its internal control systems over its Impact Aid application, and ensure that the document management systems are adequate to ensure appropriate filing of supporting documentation to the applications are maintained.
Finding 2023-005
2023-005 Audit report deadline (Repeated 2022-009) Federal Program: Impact Aid CFDA Title: Impact Aid CFDA Number: 84.041 Federal Award Number and Year: Name of Federal Agency: Department of Education Condition: Montana local governments with a June 30th fiscal year end must submit their audit report to the MT Department of Administration and the Federal Clearing house by March 31st , following the fiscal year end. The audit was not completed until May 2024. This is a repeat finding from the prior year. Context: Per review of the audit compliance requirements for both the State of Montana and the Federal government. Criteria: The audit for the fiscal year ended June 30th 2023 was due to the State and the Federal government by March 31, 2024 as required by MT Administrative Rules 2.4.411 and the Federal Uniform Guidance/A-133 rules. Effect: The District audit was not completed timely and is not in compliance with state and federal regulations. Cause: The District was unable to provide requested documentation to auditors timely to ensure audit was completed by deadline. Recommendation: We recommend the County complete their annual audits in compliance with MT Administrative Rules 2.4.411 and federal rules described in the Uniform Guidance/A-133.
Finding 2023-004
2023-004 Impact Aid Application Controls Federal Program: Impact Aid CFDA Title: Impact Aid CFDA Number: 84.041 Federal Award Number and Year: Name of Federal Agency: Department of Education Condition: The District does not have an internal control system in place to ensure that supporting documentation is maintained to support the Impact Aid Applications for the elementary and high school. Context: We requested the supporting documentation to test the compliance of reported students counts on the elementary and high school impact aid applications, but the District had a difficult time providing the supporting application and trust land documentation to support the application. The verification of the trust land students from the Tribe had to be provided again from the trip to support spreadsheets of the students and their addresses. Criteria: (1) 2 CFR section 200.303 requires that the District establish and maintain an effective internal control system over the federal award to provide reasonable assurance that the District is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the federal award. (2) Application for Impact Aid - Section 7003 (OMB No. 1810-0687) - Each year an LEA must submit this application, which provides the following information: counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. This form is in the Impact Aid Grant System, which does not have a public link, therefore school districts will need to provide a copy to the auditor. Effect: The District risk of noncompliance with federal programs increases if documentation is not maintained to support those compliance requirements. Cause: The District did not establish and maintain an adequate internal control system ensure that supporting documentation is maintained to support the membership counts of the children who live on Indian lands. Recommendation: We recommend that the District review its internal control systems over its Impact Aid application, and ensure that the document management systems are adequate to ensure appropriate filing of supporting documentation to the applications are maintained.
Finding 2023-005
2023-005 Audit report deadline (Repeated 2022-009) Federal Program: Impact Aid CFDA Title: Impact Aid CFDA Number: 84.041 Federal Award Number and Year: Name of Federal Agency: Department of Education Condition: Montana local governments with a June 30th fiscal year end must submit their audit report to the MT Department of Administration and the Federal Clearing house by March 31st , following the fiscal year end. The audit was not completed until May 2024. This is a repeat finding from the prior year. Context: Per review of the audit compliance requirements for both the State of Montana and the Federal government. Criteria: The audit for the fiscal year ended June 30th 2023 was due to the State and the Federal government by March 31, 2024 as required by MT Administrative Rules 2.4.411 and the Federal Uniform Guidance/A-133 rules. Effect: The District audit was not completed timely and is not in compliance with state and federal regulations. Cause: The District was unable to provide requested documentation to auditors timely to ensure audit was completed by deadline. Recommendation: We recommend the County complete their annual audits in compliance with MT Administrative Rules 2.4.411 and federal rules described in the Uniform Guidance/A-133.