FAC Explorer

Audit 316301

FY End
2020-06-30
Total Expended
$1.04M
Findings
6
Programs
10
Organization: Cambria Heights School District (PA)
Year: 2020 Accepted: 2024-07-31
Auditor: Mark C Turnley CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479725 2020-004 Material Weakness Yes L
479726 2020-004 Material Weakness Yes L
479727 2020-004 Material Weakness Yes L
1056167 2020-004 Material Weakness Yes L
1056168 2020-004 Material Weakness Yes L
1056169 2020-004 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $251,581 - 0
84.027 Special Education_grants to States $237,374 Yes 0
21.019 Coronavirus Relief Fund $79,934 - 0
10.553 School Breakfast Program $74,623 Yes 1
84.425 Education Stabilization Fund $58,800 - 0
10.555 National School Lunch Program $36,797 Yes 1
84.424 Student Support and Academic Enrichment Program $19,041 - 0
84.367 Improving Teacher Quality State Grants $4,545 - 0
93.778 Medical Assistance Program $4,115 - 0
84.173 Special Education_preschool Grants $2,324 Yes 0

Contacts

Name Title Type
DJQTCZVVUQW9 Stephanie Renninger Auditee
8146743626 Mark Turnley Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: BASIS OF ACCOUNTING: Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Cambria Heights 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 grant activity administered by the Cambria Heights School District for the year ended June 30, 2020. 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 Grant Guidance – UGG). 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 Cambria Heights School District.
Title: NOTE 3 - RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: BASIS OF ACCOUNTING: Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Cambria Heights School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Federal financial award revenues are included in the financial statements as ‘local source’ and 'federal source' revenues.
Title: NOTE 4 - RECEIVABLES AND UNEARNED REVENUE Accounting Policies: BASIS OF ACCOUNTING: Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Cambria Heights School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Federal grants receivable is included as part of 'due from other governments' in Exhibit A and Exhibit C as referenced in Note 4 to the Financial Statements. Unearned federal grant revenue, if any, is included as part of 'unearned revenue' in Exhibit A and Exhibit C to the Financial Statements.
Title: NOTE 5 - NON-CASH ASSISTANCE Accounting Policies: BASIS OF ACCOUNTING: Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Cambria Heights School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Cambria Heights School District received donated commodities from the Department of Agriculture in connection with its food service program. The amount of non-cash assistance expended in the accompanying schedule of expenditures of federal awards reflects the fair market value of the commodities used during the 2019-2020 fiscal year.

Finding Details

Finding 2020-004
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2019-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. EFFECT: The lack of maintaining a general ledger system of accounting for the District’s Cafeteria Fund significantly reduces the District-wide internal controls over the ability to properly manage and account for the assets contained within this Fund, as well as reduces the District’s ability to comply with the compliance requirements for internal control over financial reporting for federal programs as stated in 2 CFR Part 200 of the Uniform Guidance. CAUSE: As a result of the minimal staff size in the District’s business office, management has opted to simplify the process by which they account for and monitor the financial activities of the Cafeteria Fund by utilizing a checkbook system of accounting rather than maintaining a general ledger system of accounting for these Funds. QUESTIONED COSTS: None RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.
Finding 2020-004
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2019-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. EFFECT: The lack of maintaining a general ledger system of accounting for the District’s Cafeteria Fund significantly reduces the District-wide internal controls over the ability to properly manage and account for the assets contained within this Fund, as well as reduces the District’s ability to comply with the compliance requirements for internal control over financial reporting for federal programs as stated in 2 CFR Part 200 of the Uniform Guidance. CAUSE: As a result of the minimal staff size in the District’s business office, management has opted to simplify the process by which they account for and monitor the financial activities of the Cafeteria Fund by utilizing a checkbook system of accounting rather than maintaining a general ledger system of accounting for these Funds. QUESTIONED COSTS: None RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.
Finding 2020-004
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2019-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. EFFECT: The lack of maintaining a general ledger system of accounting for the District’s Cafeteria Fund significantly reduces the District-wide internal controls over the ability to properly manage and account for the assets contained within this Fund, as well as reduces the District’s ability to comply with the compliance requirements for internal control over financial reporting for federal programs as stated in 2 CFR Part 200 of the Uniform Guidance. CAUSE: As a result of the minimal staff size in the District’s business office, management has opted to simplify the process by which they account for and monitor the financial activities of the Cafeteria Fund by utilizing a checkbook system of accounting rather than maintaining a general ledger system of accounting for these Funds. QUESTIONED COSTS: None RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.
Finding 2020-004
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2019-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. EFFECT: The lack of maintaining a general ledger system of accounting for the District’s Cafeteria Fund significantly reduces the District-wide internal controls over the ability to properly manage and account for the assets contained within this Fund, as well as reduces the District’s ability to comply with the compliance requirements for internal control over financial reporting for federal programs as stated in 2 CFR Part 200 of the Uniform Guidance. CAUSE: As a result of the minimal staff size in the District’s business office, management has opted to simplify the process by which they account for and monitor the financial activities of the Cafeteria Fund by utilizing a checkbook system of accounting rather than maintaining a general ledger system of accounting for these Funds. QUESTIONED COSTS: None RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.
Finding 2020-004
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2019-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. EFFECT: The lack of maintaining a general ledger system of accounting for the District’s Cafeteria Fund significantly reduces the District-wide internal controls over the ability to properly manage and account for the assets contained within this Fund, as well as reduces the District’s ability to comply with the compliance requirements for internal control over financial reporting for federal programs as stated in 2 CFR Part 200 of the Uniform Guidance. CAUSE: As a result of the minimal staff size in the District’s business office, management has opted to simplify the process by which they account for and monitor the financial activities of the Cafeteria Fund by utilizing a checkbook system of accounting rather than maintaining a general ledger system of accounting for these Funds. QUESTIONED COSTS: None RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.
Finding 2020-004
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2019-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. EFFECT: The lack of maintaining a general ledger system of accounting for the District’s Cafeteria Fund significantly reduces the District-wide internal controls over the ability to properly manage and account for the assets contained within this Fund, as well as reduces the District’s ability to comply with the compliance requirements for internal control over financial reporting for federal programs as stated in 2 CFR Part 200 of the Uniform Guidance. CAUSE: As a result of the minimal staff size in the District’s business office, management has opted to simplify the process by which they account for and monitor the financial activities of the Cafeteria Fund by utilizing a checkbook system of accounting rather than maintaining a general ledger system of accounting for these Funds. QUESTIONED COSTS: None RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.