FAC Explorer

Audit 332889

FY End
2024-06-30
Total Expended
$53.36M
Findings
14
Programs
19
Organization: Davenport Community School District (IA)
Year: 2024 Accepted: 2024-12-17
Auditor: Bohnsack & Frommelt LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
514558 2024-002 - Yes B
514559 2024-002 - Yes B
514560 2024-002 - Yes B
514561 2024-002 - Yes B
514562 2024-002 - Yes B
514563 2024-002 - Yes B
514564 2024-002 - Yes B
1091000 2024-002 - Yes B
1091001 2024-002 - Yes B
1091002 2024-002 - Yes B
1091003 2024-002 - Yes B
1091004 2024-002 - Yes B
1091005 2024-002 - Yes B
1091006 2024-002 - Yes B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $2.23M Yes 0
10.553 School Breakfast Program $1.77M - 1
84.027 Special Education_grants to States $749,499 - 0
84.367 Improving Teacher Quality State Grants $582,977 - 0
84.424 Student Support and Academic Enrichment Program $481,196 - 0
10.555 National School Lunch Program $460,893 - 1
10.582 Fresh Fruit and Vegetable Program $278,735 - 1
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $223,744 - 0
84.048 Career and Technical Education -- Basic Grants to States $206,686 - 0
10.559 Summer Food Service Program for Children $114,608 - 1
84.425 Education Stabilization Fund $98,130 Yes 0
84.196 Education for Homeless Children and Youth $71,719 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $67,666 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $52,193 - 0
93.575 Child Care and Development Block Grant $25,739 - 0
84.365 English Language Acquisition State Grants $20,574 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $13,341 - 0
12.112 Flood Control Projects $12,240 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $11,600 - 0

Contacts

Name Title Type
YVM9ZFVLJKX5 Kevin Posekany Auditee
5633365062 Mia Frommelt Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue from federal awards is recognized when the District has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal awards is recognized when it is both measurable and available. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal grant activity of Davenport Community 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 Davenport Community School District, it is not intended to and does not present the financial position, changes in net position or cash flows of Davenport Community School District.
Title: Note 2 Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue from federal awards is recognized when the District has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal awards is recognized when it is both measurable and available. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue from federal awards is recognized when the District has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal awards is recognized when it is both measurable and available. Expenditures of federal awards are recognized in the accounting period when the liability is incurred.
Title: Note 3 Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue from federal awards is recognized when the District has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal awards is recognized when it is both measurable and available. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. The District has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.
Finding 2024-002
U.S. Department of Agriculture Pass-Through Iowa Department of Education Child Nutrition Cluster Programs: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.555 National School Lunch Program-Supply Chain Assistance 10.555 Commodities -DOD (Noncash) 10.555 Commodities (Noncash) 10.559 Summer Food Service Program for Children 10.582 Fresh Fruit and Vegetable Program Federal Award Year: 2024 Finding: The District overcharged indirect costs to the Child Nutrition program. Criteria: The 2 Code of Federal Regulation (CFR) Part 200, Subpart E provides guidance on the provisions of indirect costs. Indirect cost rates are applied to modified total direct costs (MTDC). 2 CFR 200 defines MTDC as: All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Condition: The District applied the indirect cost rate to an estimated modified total direct cost allocation base that was significantly higher than the actual modified total direct cost allocation base. Cause: The District prepared a calculation using an estimate based on the prior fiscal year June expenditures in order to have a transfer amount approved by the Board prior to year-end. Effect: The District could overcharge federal awards for indirect costs. Questioned costs: The District overcharged the program approximately $49,000 computed by applying the unrestricted indirect cost rate provided by the Iowa Department of Education to an estimated modified total direct cost allocation base. Context: The overcharge represents approximately 0.9 percent of the program modified total direct cost allocation base and approximately 0.5 percent of the total program expenditures on the Schedule of Expenditures of Federal Awards. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District annually prepare the indirect cost worksheet based on the actual fiscal year trial balance to compute the modified total direct cost allocation base for all federal awards to apply indirect cost rates.