Audit 328940

FY End
2024-06-30
Total Expended
$6.65M
Findings
10
Programs
18
Organization: Kuspuk School District (AK)
Year: 2024 Accepted: 2024-11-19

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
508347 2024-001 Material Weakness - L
508348 2024-001 Material Weakness - L
508349 2024-001 Material Weakness - L
508350 2024-001 Material Weakness - L
508351 2024-001 Material Weakness - L
1084789 2024-001 Material Weakness - L
1084790 2024-001 Material Weakness - L
1084791 2024-001 Material Weakness - L
1084792 2024-001 Material Weakness - L
1084793 2024-001 Material Weakness - L

Contacts

Name Title Type
CEFUKVANYGA6 Martha Morgan Auditee
9076754250 Katie Stachow Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The 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”) includes the federal award activity of Kuspuk School District 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). Because the Schedule presents only a selected portion of the operations of Kuspuk School District, it is not intended to and does not present the basic financial statements of Kuspuk School District.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3. Passed through to Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No federal funds were passed through to subrecipients.
Title: Note 4. Non-monetary Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Non-monetary assistance is reported in the schedule at fair market value of commodities received and disbursed. For the year ended June 30, 2024, the District received $19,724 in commodities.
Title: Note 5. Total Expenditures for ALN 84.425 Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Kuspuk School District received funding under Assistance Listing 84.425 from the following pass-through entities: State of Alaska Department of Education and Early Development $ 500,069 Alaska Council of School Administrators 10,946 Total ALN 84.425 $ 511,015

Finding Details

Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Programs: Child Nutrition Cluster Assistance Listing Numbers: 10.553/10.555 Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service. Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible. Cause: Lack of internal controls over meal count documentation. Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue. Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required. Management’s Response: Management concurs with this finding. See corrective action plan.