FAC Explorer

Audit 32444

FY End
2022-06-30
Total Expended
$3.91M
Findings
2
Programs
19
Organization: Frankfort Independent School District (KY)
Year: 2022 Accepted: 2023-01-08
Auditor: Rfh PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31404 2022-003 Material Weakness - B
607846 2022-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $2.19M Yes 1
10.555 National School Lunch Program $500,182 - 0
84.010 Title I Grants to Local Educational Agencies $332,460 - 0
84.027 Special Education_grants to States $258,254 Yes 0
10.553 School Breakfast Program $195,848 - 0
10.559 Summer Food Service Program for Children $148,307 - 0
93.575 Child Care and Development Block Grant $74,833 - 0
84.358 Rural Education $35,971 - 0
84.367 Improving Teacher Quality State Grants $33,224 - 0
84.424 Student Support and Academic Enrichment Program $29,522 - 0
10.575 Farm to School Grant Program $24,642 - 0
84.173 Special Education_preschool Grants $22,312 Yes 0
10.170 Specialty Crop Block Grant Program - Farm Bill $4,288 - 0
84.048 Career and Technical Education -- Basic Grants to States $3,310 - 0
84.365 English Language Acquisition State Grants $1,953 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1,586 - 0
93.375 Childcare and Development Block Grant $1,441 - 0
10.558 Child and Adult Care Food Program $1,262 - 0
10.560 State Administrative Expenses for Child Nutrition $593 - 0

Contacts

Name Title Type
S9KVF64WCAZ9 Kimberly Beers Auditee
5028758661 Heather Cochran Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary assistance Accounting Policies: The accompanying schedule of expenditures of federal rewards includes the federal grant activity of the Frankfort Independent School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used, in the preparation of, the basic financial statements may differ from those numbers. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities disbursed.
Title: Pash Through Funds Accounting Policies: The accompanying schedule of expenditures of federal rewards includes the federal grant activity of the Frankfort Independent School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used, in the preparation of, the basic financial statements may differ from those numbers. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not pass through any funds to subrecipients.
Title: Passthrough Entity Numbers Accounting Policies: The accompanying schedule of expenditures of federal rewards includes the federal grant activity of the Frankfort Independent School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used, in the preparation of, the basic financial statements may differ from those numbers. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Passthrough entity numbers are presented when available. Passthrough grantor's number not available.

Finding Details

Finding 2022-003
Criteria: In accordance with 2 CFR 200, indirect cost rates must be applied in accordance with the terms of the grant agreement. For the Education Stabilization Fund the Kentucky Department of Education approves the indirect cost rates as well as the methodology of determining indirect costs. Condition: The District made a material error when calculating the June 2022 indirect costs for the Education Stabilization Fund. The District used the correct indirect cost rate, however a formula error resulted in a material error that was not identified by the District?s internal controls. Cause: The District?s internal controls failed to identify the calculation for indirect costs was materially incorrect. Effect: The auditor proposed and the District posted an adjustment totaling $126,000 to decrease indirect costs for the Education Stabilization Fund. If the auditor had not identified the error, the District would have incorrectly requested federal funds totaling $126,000. Recommendation: We recommend the District review its internal controls related to its calculation of indirect costs for all programs. Management?s Response: The District will review on a periodic basis the alignment of indirect cost rates and the calculations being used to ensure accuracy.
Finding 2022-003
Criteria: In accordance with 2 CFR 200, indirect cost rates must be applied in accordance with the terms of the grant agreement. For the Education Stabilization Fund the Kentucky Department of Education approves the indirect cost rates as well as the methodology of determining indirect costs. Condition: The District made a material error when calculating the June 2022 indirect costs for the Education Stabilization Fund. The District used the correct indirect cost rate, however a formula error resulted in a material error that was not identified by the District?s internal controls. Cause: The District?s internal controls failed to identify the calculation for indirect costs was materially incorrect. Effect: The auditor proposed and the District posted an adjustment totaling $126,000 to decrease indirect costs for the Education Stabilization Fund. If the auditor had not identified the error, the District would have incorrectly requested federal funds totaling $126,000. Recommendation: We recommend the District review its internal controls related to its calculation of indirect costs for all programs. Management?s Response: The District will review on a periodic basis the alignment of indirect cost rates and the calculations being used to ensure accuracy.