FAC Explorer

Audit 325303

FY End
2024-06-30
Total Expended
$915,666
Findings
2
Programs
9
Organization: Unified School District No. 355 Ellinwood, Kansas (KS)
Year: 2024 Accepted: 2024-10-21
Auditor: Adamsbrown LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503248 2024-002 Significant Deficiency - AB
1079690 2024-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $601,312 Yes 1
10.555 National School Lunch Program $94,307 - 0
84.010 Title I Grants to Local Educational Agencies $86,603 - 0
84.358 Rural Education $44,743 - 0
10.559 Summer Food Service Program for Children $33,731 - 0
10.553 School Breakfast Program $22,041 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $15,011 - 0
84.424 Student Support and Academic Enrichment Program $13,678 - 0
10.185 Local Food for Schools Cooperative Agreement Program $4,240 - 0

Contacts

Name Title Type
SSQWULCMEWD5 Ben Jacobs Auditee
6205643226 Danielle Hollingshead Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are presented in accordance with the regulatory basis of accounting. This is the basis of the financial reporting provisions of the Kansas Municipal Audit and Accounting Guide, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance cost principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Unified School District No. 355 Ellinwood, Kansas under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position of the District.
Title: Other Expenditures Accounting Policies: Expenditures reported on the schedule are presented in accordance with the regulatory basis of accounting. This is the basis of the financial reporting provisions of the Kansas Municipal Audit and Accounting Guide, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance cost principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not receive any federal awards in the form of noncash assistance, insurance, loans, or loan guarantees and incurred no expenditures in relation thereof for the year ended June 30, 2024.

Finding Details

Finding 2024-002
Federal program Education Stabilization Fund – 84.425 Compliance requirements Activities Allowed and Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During inquiry of District personnel and review of program documents, we identified that certain amounts booked with journal entries to the program expenditure account either could not be fully substantiated with supporting documentation or were booked to an incorrect period. Context Two program transactions were found to have exceptions. Regarding the first transaction, for each payroll period, a manual calculation of the afterschool tutoring hours was performed to identify the wages and taxes that needed to be moved to the program expenditure account. For one month, an additional three hours were listed that could not be matched to a specific employee or to any other supporting documentation. This resulted in an additional $101 being charged to the program. Regarding the second transaction, it was determined that hours worked for summer school in July of 2024 were booked with a journal entry to the program expenditure account in fiscal year 2024. However, since the underlying activity occurred in fiscal year 2025, the original expense transaction was not accrued and recorded within the accounting records until fiscal year 2025. This resulted in $1,987 being expensed to the program in fiscal year 2024 that should not have been recognized until year 2025. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program. Effect Expenditures were incorrectly charged to the program for the period under audit. Recommendation We recommend that the District carefully review supporting documentation when preparing journal entries associated with federal programs. Views of responsible officials See Corrective Action Plan.
Finding 2024-002
Federal program Education Stabilization Fund – 84.425 Compliance requirements Activities Allowed and Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During inquiry of District personnel and review of program documents, we identified that certain amounts booked with journal entries to the program expenditure account either could not be fully substantiated with supporting documentation or were booked to an incorrect period. Context Two program transactions were found to have exceptions. Regarding the first transaction, for each payroll period, a manual calculation of the afterschool tutoring hours was performed to identify the wages and taxes that needed to be moved to the program expenditure account. For one month, an additional three hours were listed that could not be matched to a specific employee or to any other supporting documentation. This resulted in an additional $101 being charged to the program. Regarding the second transaction, it was determined that hours worked for summer school in July of 2024 were booked with a journal entry to the program expenditure account in fiscal year 2024. However, since the underlying activity occurred in fiscal year 2025, the original expense transaction was not accrued and recorded within the accounting records until fiscal year 2025. This resulted in $1,987 being expensed to the program in fiscal year 2024 that should not have been recognized until year 2025. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program. Effect Expenditures were incorrectly charged to the program for the period under audit. Recommendation We recommend that the District carefully review supporting documentation when preparing journal entries associated with federal programs. Views of responsible officials See Corrective Action Plan.