Audit 316952

FY End
2023-06-30
Total Expended
$9.95M
Findings
64
Programs
18
Organization: Hampton County School District (SC)
Year: 2023 Accepted: 2024-08-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
480746 2023-009 Material Weakness - B
480747 2023-009 Material Weakness - B
480748 2023-009 Material Weakness - B
480749 2023-009 Material Weakness - B
480750 2023-010 Material Weakness - B
480751 2023-010 Material Weakness - B
480752 2023-010 Material Weakness - B
480753 2023-010 Material Weakness - B
480754 2023-010 Material Weakness - B
480755 2023-010 Material Weakness - B
480756 2023-010 Material Weakness - B
480757 2023-010 Material Weakness - B
480758 2023-010 Material Weakness - B
480759 2023-010 Material Weakness - B
480760 2023-010 Material Weakness - B
480761 2023-010 Material Weakness - B
480762 2023-011 Material Weakness - B
480763 2023-011 Material Weakness - B
480764 2023-011 Material Weakness - B
480765 2023-011 Material Weakness - B
480766 2023-011 Material Weakness - B
480767 2023-011 Material Weakness - B
480768 2023-011 Material Weakness - B
480769 2023-011 Material Weakness - B
480770 2023-011 Material Weakness - B
480771 2023-011 Material Weakness - B
480772 2023-011 Material Weakness - B
480773 2023-011 Material Weakness - B
480774 2023-012 Material Weakness - BL
480775 2023-012 Material Weakness - BL
480776 2023-012 Material Weakness - BL
480777 2023-012 Material Weakness - BL
1057188 2023-009 Material Weakness - B
1057189 2023-009 Material Weakness - B
1057190 2023-009 Material Weakness - B
1057191 2023-009 Material Weakness - B
1057192 2023-010 Material Weakness - B
1057193 2023-010 Material Weakness - B
1057194 2023-010 Material Weakness - B
1057195 2023-010 Material Weakness - B
1057196 2023-010 Material Weakness - B
1057197 2023-010 Material Weakness - B
1057198 2023-010 Material Weakness - B
1057199 2023-010 Material Weakness - B
1057200 2023-010 Material Weakness - B
1057201 2023-010 Material Weakness - B
1057202 2023-010 Material Weakness - B
1057203 2023-010 Material Weakness - B
1057204 2023-011 Material Weakness - B
1057205 2023-011 Material Weakness - B
1057206 2023-011 Material Weakness - B
1057207 2023-011 Material Weakness - B
1057208 2023-011 Material Weakness - B
1057209 2023-011 Material Weakness - B
1057210 2023-011 Material Weakness - B
1057211 2023-011 Material Weakness - B
1057212 2023-011 Material Weakness - B
1057213 2023-011 Material Weakness - B
1057214 2023-011 Material Weakness - B
1057215 2023-011 Material Weakness - B
1057216 2023-012 Material Weakness - BL
1057217 2023-012 Material Weakness - BL
1057218 2023-012 Material Weakness - BL
1057219 2023-012 Material Weakness - BL

Contacts

Name Title Type
GY51M9PDEF88 Kathy Culclasure Auditee
8039434576 Dawn K Strickland Auditor
No contacts on file

Notes to SEFA

Title: A-General Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The 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”) presents the activity of all federal award programs of Hampton County School District, Hampton County, South Carolina (the “School District”) for the year ended June 30, 2023. All federal awards received directly from the federal agencies, as well as those passed through other government agencies, are included on the Schedule.
Title: B – Basis of Accounting Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The accompanying Schedule is presented using the modified accrual basis of accounting.
Title: C – Relationship to Financial Statements Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance Federal award expenditures are reported in the School District’s financial statements primarily as expenditures in the Special Revenue Funds. The federal interest subsidy assistance received from Qualified School Construction Bonds of $1,242,164 reported in the Debt Service Fund is excluded from the SEFA reporting.
Title: D – Relationship to Federal Financial Reports Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance Amounts reported in the accompanying Schedule agree with the amounts reported in the related federal financial reports except for timing differences relating to expenditures made subsequent to the filing of the federal financial reports.
Title: E – Indirect Cost Rate Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.
Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: In reviewing the invoices submitted for 75% reimbursement under a USDA Facilities Grant, we noted a $16,876.64 invoice submitted was actually previously reimbursed with other state grant funds in the prior year. This invoice had been moved through journal entries in the general ledger from its original posting as an expenditure. When the invoice was submitted for reimbursement to the USDA Rural Development office, the District did not review the general ledger to verify it was still available to be reimbursed. Journal entries had been made to move it to another fund as other grant funds were used for reimbursement. Therefore, these expenditures were not allowed to be reimbursed again. The District contacted the USDA grant office. They have allowed invoices for other applicable expenditures as a replacement so that no funds will be requested to be paid back to USDA.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: Through our audit procedures, we noted the District failed to include approximately $757,000 of covered member salaries on the retirement quarterly report for the quarter ending December 31, 2022 which resulted in $235,189 of contributions not being reported or paid. These contributions included both employee contributions which had been withheld from wages and employer contributions which had been recorded as District expenditures in the general ledger. As of the end of June, 2024, the District had not paid this amount and was awaiting the calculation of interest and penalties assessed for late payment.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.
Condition and context: The SC Department of Education’s accounting system utilizes specific function and location codes and specific transfer accounts in their approved general account structure. The District’s unadjusted general ledger contained various generic function codes. Adjusting journal entries were necessary to correct the function for some expenditures. Of these necessary adjusting journal entries, $48,000 was a material adjustment to the EIA Special Revenue Fund for correcting functions and $271,889 and $43,545 were material adjustments to the Debt Service Fund and Special Projects-Special Revenue Fund, respectively, for correcting locations. Since federal revenues are not allowed to be reported in capital project funds under the SC Department of Education's accounting system, material adjustments of $276,475 were necessary to move federal grant activity to a special revenue fund.