FAC Explorer

Audit 326752

FY End
2024-06-30
Total Expended
$14.55M
Findings
6
Programs
14
Organization: Watertown City School District (NY)
Year: 2024 Accepted: 2024-10-31
Auditor: Bowers and Company CPAS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504254 2024-002 - - BH
504255 2024-002 - - BH
504256 2024-002 - - BH
1080696 2024-002 - - BH
1080697 2024-002 - - BH
1080698 2024-002 - - BH

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $755,603 - 0
84.041 Impact Aid $516,808 - 0
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $359,040 - 0
84.010 Title I Grants to Local Educational Agencies $225,185 - 1
10.555 National School Lunch Program $112,352 - 0
10.559 Summer Food Service Program for Children $88,517 - 0
10.582 Fresh Fruit and Vegetable Program $66,707 - 0
84.424 Student Support and Academic Enrichment Program $32,982 Yes 0
84.027 Special Education Grants to States $30,265 - 0
10.185 Local Food for Schools Cooperative Agreement Program $9,996 - 0
84.425 Education Stabilization Fund $5,177 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $3,124 - 0
84.173 Special Education Preschool Grants $2,366 - 0
84.365 English Language Acquisition State Grants $1,837 - 0

Contacts

Name Title Type
MKGNJMF7R9B8 Brianne Durham Auditee
3157853714 Laurie Podvin Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable programs and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. The federal expenditures are recognized under the Uniform Guidance. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source of the data presented. The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. No amounts were provided to subrecipients.
Title: OTHER DISCLOSURES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable programs and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. The federal expenditures are recognized under the Uniform Guidance. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source of the data presented. The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value and is covered by the District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year-end.
Title: NON-MONETARY FEDERAL PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable programs and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. The federal expenditures are recognized under the Uniform Guidance. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source of the data presented. The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. This District is the recipient of federal award programs that do not result in cash received or disbursed. The District was granted $104,073 of commodities under the National School Lunch Program (Assistance Listing 10.555) and $66,707 of commodities under the Fresh Fruit and Vegetable Program (Assistance Listing 10.582).
Title: SCOPE OF AUDIT Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable programs and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. The federal expenditures are recognized under the Uniform Guidance. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source of the data presented. The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The District is an independent municipal corporation. All federal grant operations of the District are included in the scope of the single audit.

Finding Details

Finding 2024-002
Instances of Noncompliance with Laws or Regulations Known Questioned Costs Exceeding $25,000 For Federal Program Which Is Not Audited as a Major Program Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: NYS Education Department Assistance Listing Number: 84.010A Applicable Compliance Component: Period of Performance Known Questioned Cost Amount: $38,820 Criteria The District is responsible for ensuring grant money is used for costs that are allowable and related to each grants purpose. Each federal grant specifies a performance period during which program costs may be obligated or liquidated. Payments for costs charged before or after a grants beginning and end dates are not allowed without the grantor’s prior approval. Condition It was found that $92,000 in expenditures charged to the Title I grant on the final expenditure report were an estimated amount. Only $53,180 of expenditures within the grant guidelines and grant period were found to be incurred by the District. The remaining $38,820 was determined to be questioned costs. Effect We are questioning $38,820 improperly charged expenditures made to the Title I grant which have been collected from the NYS Education Department. We question costs when we find a District has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. During audit procedures, adjusting journal entries were recorded to remove the costs from federal revenue and instructional expenses, and are reported on the audited financial statements as due to other governments. Cause Management did not provide proper oversight to ensure any improper charges were identified and reversed by staff prior to filing of a final cost report to the grant agency. Recommendation We recommend the District review their internal controls over ensuring grant money is used for allowable costs and within the grant period submitted for. The Title I grant should be reviewed and an amended final cost report filed with SED and the $38,820 of questioned costs returned to the Department of Education.
Finding 2024-002
Instances of Noncompliance with Laws or Regulations Known Questioned Costs Exceeding $25,000 For Federal Program Which Is Not Audited as a Major Program Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: NYS Education Department Assistance Listing Number: 84.010A Applicable Compliance Component: Period of Performance Known Questioned Cost Amount: $38,820 Criteria The District is responsible for ensuring grant money is used for costs that are allowable and related to each grants purpose. Each federal grant specifies a performance period during which program costs may be obligated or liquidated. Payments for costs charged before or after a grants beginning and end dates are not allowed without the grantor’s prior approval. Condition It was found that $92,000 in expenditures charged to the Title I grant on the final expenditure report were an estimated amount. Only $53,180 of expenditures within the grant guidelines and grant period were found to be incurred by the District. The remaining $38,820 was determined to be questioned costs. Effect We are questioning $38,820 improperly charged expenditures made to the Title I grant which have been collected from the NYS Education Department. We question costs when we find a District has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. During audit procedures, adjusting journal entries were recorded to remove the costs from federal revenue and instructional expenses, and are reported on the audited financial statements as due to other governments. Cause Management did not provide proper oversight to ensure any improper charges were identified and reversed by staff prior to filing of a final cost report to the grant agency. Recommendation We recommend the District review their internal controls over ensuring grant money is used for allowable costs and within the grant period submitted for. The Title I grant should be reviewed and an amended final cost report filed with SED and the $38,820 of questioned costs returned to the Department of Education.
Finding 2024-002
Instances of Noncompliance with Laws or Regulations Known Questioned Costs Exceeding $25,000 For Federal Program Which Is Not Audited as a Major Program Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: NYS Education Department Assistance Listing Number: 84.010A Applicable Compliance Component: Period of Performance Known Questioned Cost Amount: $38,820 Criteria The District is responsible for ensuring grant money is used for costs that are allowable and related to each grants purpose. Each federal grant specifies a performance period during which program costs may be obligated or liquidated. Payments for costs charged before or after a grants beginning and end dates are not allowed without the grantor’s prior approval. Condition It was found that $92,000 in expenditures charged to the Title I grant on the final expenditure report were an estimated amount. Only $53,180 of expenditures within the grant guidelines and grant period were found to be incurred by the District. The remaining $38,820 was determined to be questioned costs. Effect We are questioning $38,820 improperly charged expenditures made to the Title I grant which have been collected from the NYS Education Department. We question costs when we find a District has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. During audit procedures, adjusting journal entries were recorded to remove the costs from federal revenue and instructional expenses, and are reported on the audited financial statements as due to other governments. Cause Management did not provide proper oversight to ensure any improper charges were identified and reversed by staff prior to filing of a final cost report to the grant agency. Recommendation We recommend the District review their internal controls over ensuring grant money is used for allowable costs and within the grant period submitted for. The Title I grant should be reviewed and an amended final cost report filed with SED and the $38,820 of questioned costs returned to the Department of Education.
Finding 2024-002
Instances of Noncompliance with Laws or Regulations Known Questioned Costs Exceeding $25,000 For Federal Program Which Is Not Audited as a Major Program Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: NYS Education Department Assistance Listing Number: 84.010A Applicable Compliance Component: Period of Performance Known Questioned Cost Amount: $38,820 Criteria The District is responsible for ensuring grant money is used for costs that are allowable and related to each grants purpose. Each federal grant specifies a performance period during which program costs may be obligated or liquidated. Payments for costs charged before or after a grants beginning and end dates are not allowed without the grantor’s prior approval. Condition It was found that $92,000 in expenditures charged to the Title I grant on the final expenditure report were an estimated amount. Only $53,180 of expenditures within the grant guidelines and grant period were found to be incurred by the District. The remaining $38,820 was determined to be questioned costs. Effect We are questioning $38,820 improperly charged expenditures made to the Title I grant which have been collected from the NYS Education Department. We question costs when we find a District has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. During audit procedures, adjusting journal entries were recorded to remove the costs from federal revenue and instructional expenses, and are reported on the audited financial statements as due to other governments. Cause Management did not provide proper oversight to ensure any improper charges were identified and reversed by staff prior to filing of a final cost report to the grant agency. Recommendation We recommend the District review their internal controls over ensuring grant money is used for allowable costs and within the grant period submitted for. The Title I grant should be reviewed and an amended final cost report filed with SED and the $38,820 of questioned costs returned to the Department of Education.
Finding 2024-002
Instances of Noncompliance with Laws or Regulations Known Questioned Costs Exceeding $25,000 For Federal Program Which Is Not Audited as a Major Program Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: NYS Education Department Assistance Listing Number: 84.010A Applicable Compliance Component: Period of Performance Known Questioned Cost Amount: $38,820 Criteria The District is responsible for ensuring grant money is used for costs that are allowable and related to each grants purpose. Each federal grant specifies a performance period during which program costs may be obligated or liquidated. Payments for costs charged before or after a grants beginning and end dates are not allowed without the grantor’s prior approval. Condition It was found that $92,000 in expenditures charged to the Title I grant on the final expenditure report were an estimated amount. Only $53,180 of expenditures within the grant guidelines and grant period were found to be incurred by the District. The remaining $38,820 was determined to be questioned costs. Effect We are questioning $38,820 improperly charged expenditures made to the Title I grant which have been collected from the NYS Education Department. We question costs when we find a District has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. During audit procedures, adjusting journal entries were recorded to remove the costs from federal revenue and instructional expenses, and are reported on the audited financial statements as due to other governments. Cause Management did not provide proper oversight to ensure any improper charges were identified and reversed by staff prior to filing of a final cost report to the grant agency. Recommendation We recommend the District review their internal controls over ensuring grant money is used for allowable costs and within the grant period submitted for. The Title I grant should be reviewed and an amended final cost report filed with SED and the $38,820 of questioned costs returned to the Department of Education.
Finding 2024-002
Instances of Noncompliance with Laws or Regulations Known Questioned Costs Exceeding $25,000 For Federal Program Which Is Not Audited as a Major Program Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: NYS Education Department Assistance Listing Number: 84.010A Applicable Compliance Component: Period of Performance Known Questioned Cost Amount: $38,820 Criteria The District is responsible for ensuring grant money is used for costs that are allowable and related to each grants purpose. Each federal grant specifies a performance period during which program costs may be obligated or liquidated. Payments for costs charged before or after a grants beginning and end dates are not allowed without the grantor’s prior approval. Condition It was found that $92,000 in expenditures charged to the Title I grant on the final expenditure report were an estimated amount. Only $53,180 of expenditures within the grant guidelines and grant period were found to be incurred by the District. The remaining $38,820 was determined to be questioned costs. Effect We are questioning $38,820 improperly charged expenditures made to the Title I grant which have been collected from the NYS Education Department. We question costs when we find a District has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. During audit procedures, adjusting journal entries were recorded to remove the costs from federal revenue and instructional expenses, and are reported on the audited financial statements as due to other governments. Cause Management did not provide proper oversight to ensure any improper charges were identified and reversed by staff prior to filing of a final cost report to the grant agency. Recommendation We recommend the District review their internal controls over ensuring grant money is used for allowable costs and within the grant period submitted for. The Title I grant should be reviewed and an amended final cost report filed with SED and the $38,820 of questioned costs returned to the Department of Education.