Audit 333198

FY End
2024-06-30
Total Expended
$2.57M
Findings
2
Programs
19
Organization: Chatham School District (AK)
Year: 2024 Accepted: 2024-12-17

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
515156 2024-003 Significant Deficiency - AB
1091598 2024-003 Significant Deficiency - AB

Contacts

Name Title Type
NJZ4GFUKHVB1 Teri Hoover Auditee
9077883302 Joseph Bergene 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Chatham School 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 Chatham School District (the “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 the District, it is not intended to and does not present the basic financial statements of the 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Chatham School 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3. Passed Through Awards 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No amounts were passed through to subrecipients.
Title: Note 4. Reconciliation to the Basic Financial Statements 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Impact Aid revenue is recognized when received; however, expenditures are applied to the prior year and a reserve is established annually for Impact Aid received under the current application. Federal expenditures per the Schedule $ 2,574,320 Contract revenues reported as federal revenues in the basic financial statements 94,264 Statutory Impact Aid reserved in FY23 (208,572) Statutory Impact Aid received and reserved in FY24 180,693 Total federal revenues per Basic Financial Statements $ 2,640,705
Title: Note 5. FEMA Disaster Assistance – ALN 97.036 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Chatham School District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District incurred eligible expenditures in prior fiscal years and was reimbursed through Project Worksheet 0147 in 2024. The District has recorded eligible expenditures recorded in prior years on the schedule of expenditures of federal awards.

Finding Details

Finding 2024-003 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agencies: U.S. Department of Education Federal Programs: “Stay North”: Angoon Community Association’s NACTEP ALN: 84.101 Award Numbers: V101A210009 Award Years: 2021. Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Internal control procedures should be in place to ensure that payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, pay rates, coding, and deductions should be documented in the personnel files. Condition and Context: During our tests of transactions for internal controls over compliance and compliance we identified one transaction that was coded to the incorrect federal grant. Originally, it was coded to the incorrect object code per the DEED uniform chart of accounts. When the transaction was corrected, the fund number was changed to what the object code should have been resulting in the cost being charged to the incorrect program. Cause: Lack of internal control over payroll transactions. Effect: The effect is that one single transaction was coded to the incorrect program. Possible other effects from lack of internal controls could result in additional costs being incorrectly coded and not prevented, detected, or corrected in a timely manner. Questioned Costs: Questioned costs are under the reporting threshold of $25,000. Repeat Finding: No and we believe this to be an isolated incident. Recommendation: We recommend the District adhere to their internal control policies to ensure accurate reporting of payroll transactions. Managements Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2024-003 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agencies: U.S. Department of Education Federal Programs: “Stay North”: Angoon Community Association’s NACTEP ALN: 84.101 Award Numbers: V101A210009 Award Years: 2021. Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Internal control procedures should be in place to ensure that payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, pay rates, coding, and deductions should be documented in the personnel files. Condition and Context: During our tests of transactions for internal controls over compliance and compliance we identified one transaction that was coded to the incorrect federal grant. Originally, it was coded to the incorrect object code per the DEED uniform chart of accounts. When the transaction was corrected, the fund number was changed to what the object code should have been resulting in the cost being charged to the incorrect program. Cause: Lack of internal control over payroll transactions. Effect: The effect is that one single transaction was coded to the incorrect program. Possible other effects from lack of internal controls could result in additional costs being incorrectly coded and not prevented, detected, or corrected in a timely manner. Questioned Costs: Questioned costs are under the reporting threshold of $25,000. Repeat Finding: No and we believe this to be an isolated incident. Recommendation: We recommend the District adhere to their internal control policies to ensure accurate reporting of payroll transactions. Managements Response: Management agrees with this finding. See Corrective Action Plan.