FAC Explorer

Audit 325792

FY End
2024-06-30
Total Expended
$1.15M
Findings
2
Programs
10
Organization: Unified School District No. 395 Lacrosse, Kansas (KS)
Year: 2024 Accepted: 2024-10-24
Auditor: Adamsbrown LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503609 2024-004 Significant Deficiency - AB
1080051 2024-004 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $669,777 Yes 1
84.425 Education Stabilization Fund $219,921 - 0
10.555 National School Lunch Program $86,350 - 0
84.010 Title I Grants to Local Educational Agencies $73,439 - 0
84.358 Rural Education $35,348 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $17,599 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $14,054 - 0
84.424 Student Support and Academic Enrichment Program $13,161 - 0
10.553 School Breakfast Program $10,091 - 0
10.559 Summer Food Service Program for Children $9,569 - 0

Contacts

Name Title Type
DMCCKLGNM1Z6 Bill Keeley Auditee
7852222505 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. 395 LaCrosse, 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 received federal awards in the form of noncash assistance valued at $1,779 from Kansas Department for Health and Environment for the year ended June 30, 2024.

Finding Details

Finding 2024-004
Significant Deficiency 2024-004 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) – 93.323 Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement In accordance with 2 CFR 200.430, payroll charges should be supported by proper documentation that reflects the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on a Federal award and non-Federal award. In addition, in order to ensure that employees are paid the correct amount and that no conflict of interest may occur, internal controls should be put in place to ensure that all wage rates paid have been approved by the Board. Condition Three employees were paid an additional amount using program funding in order to reflect the administrative burden associated with running the program for three years. For two of the employees, no personnel activity reports or other time records could be provided to support those costs. For the third employee, a monthly log of hours worked on grant activities was provided. However, it only showed the total hours for that month and did not break them out by date of occurrence. Additionally, no supervisor review or other control over that log occurred. Lastly, the employees’ contracts were not amended and approved by the Board to reflect these additional amounts. Context We determined, through testing of program expenditures, that $16,162 was paid in gross wages and taxes for the three employees. Cause District employees do not have a significant amount of experience with large federal programs, and they were not aware of the compliance requirements. Effect Proper records were not maintained to support program expenditures. Recommendation Employees with grant administration responsibilities should undergo training to better their understanding of the compliance requirements that accompany Federal programs. Additionally, controls should be implemented to ensure that all required records are prepared, as well as to ensure that the Board approves all wage rates. Views of responsible officials See corrective action plan.
Finding 2024-004
Significant Deficiency 2024-004 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) – 93.323 Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement In accordance with 2 CFR 200.430, payroll charges should be supported by proper documentation that reflects the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on a Federal award and non-Federal award. In addition, in order to ensure that employees are paid the correct amount and that no conflict of interest may occur, internal controls should be put in place to ensure that all wage rates paid have been approved by the Board. Condition Three employees were paid an additional amount using program funding in order to reflect the administrative burden associated with running the program for three years. For two of the employees, no personnel activity reports or other time records could be provided to support those costs. For the third employee, a monthly log of hours worked on grant activities was provided. However, it only showed the total hours for that month and did not break them out by date of occurrence. Additionally, no supervisor review or other control over that log occurred. Lastly, the employees’ contracts were not amended and approved by the Board to reflect these additional amounts. Context We determined, through testing of program expenditures, that $16,162 was paid in gross wages and taxes for the three employees. Cause District employees do not have a significant amount of experience with large federal programs, and they were not aware of the compliance requirements. Effect Proper records were not maintained to support program expenditures. Recommendation Employees with grant administration responsibilities should undergo training to better their understanding of the compliance requirements that accompany Federal programs. Additionally, controls should be implemented to ensure that all required records are prepared, as well as to ensure that the Board approves all wage rates. Views of responsible officials See corrective action plan.