Audit 337048

FY End
2024-06-30
Total Expended
$3.73M
Findings
12
Programs
11
Organization: Ferndale Area School District (PA)
Year: 2024 Accepted: 2025-01-10

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
518606 2024-001 - - L
518607 2024-002 Significant Deficiency - L
518608 2024-001 - - L
518609 2024-002 Significant Deficiency - L
518610 2024-001 - - L
518611 2024-002 Significant Deficiency - L
1095048 2024-001 - - L
1095049 2024-002 Significant Deficiency - L
1095050 2024-001 - - L
1095051 2024-002 Significant Deficiency - L
1095052 2024-001 - - L
1095053 2024-002 Significant Deficiency - L

Contacts

Name Title Type
G223JDBSLKE7 David Gates Auditee
8145351507 Sarah Sernell Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards 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: Ferndale Area School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The schedule of expenditures of federal awards and certain state grants (the Schedule) includes the federal award activity of Ferndale Area 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 (CFR) 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 Ferndale Area School District, it is not intended to and does not present the financial position, changes in financial position, or cash flows of Ferndale Area School District.
Title: Donated Commodities Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards 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: Ferndale Area School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities received and disbursed. At June 30, 2024, the District had food commodities totaling $371 in inventory.

Finding Details

CONDITION: The annual report filed for the Elementary and Secondary School Emergency Relief (ESSER) Fund in fiscal year 2024 for fiscal year 2023 was filed with incorrect amounts for expenditures. CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section L., “Reporting” regarding Special Reporting, grantees are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. CAUSE: The District personnel responsible for the report misunderstood the instructions for the completion of the report. Expenditures included those through the date of reporting, rather than only those specific to fiscal year 2022-23. EFFECT: The error resulted in an inaccurate report submission to the Pennsylvania Department of Education. QUESTIONED COSTS: None PROPER PERSPECTIVE (SAMPLING): The District was only required to file one annual report during fiscal year 2023-24 for ESSER. 100% of these reports were tested for compliance. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. In addition, the personnel responsible for the completion of the annual report should review the instructions for the report to obtain a better understanding of the reporting requirements. Further, management should ensure the amounts reported on the upcoming annual report for fiscal year 2023-24 contain only the expenditures for that fiscal year. MANAGEMENT RESPONSE: Management agrees with the recommendations and will contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. The personnel responsible for the completion of the annual report will review the instructions for the report to obtain a better understanding of the reporting requirements. In addition, management will ensure the amounts reported for the upcoming annual report for fiscal year 2023-24 accurately report the expenditures for that fiscal year.
CONDITION: The District’s internal control over compliance failed to prevent errors in the ESSER annual report filed in fiscal year 2024 (for fiscal year 2023). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including properly submitted reports, as discussed in Compliance Finding #2024-001. CAUSE: The cause of the internal control deficiency over the annual reporting was a lack of oversight by management. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Reporting requirements of the Education Stabilization Fund (specifically ESSER reporting). RECOMMENDATION: We recommend that District personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported and retain support for the amounts reported. We further recommend the implementation of a review process by management to ensure the accuracy of the amounts reported. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported. Further, management will implement a review process to confirm the accuracy of the amounts reported.
CONDITION: The annual report filed for the Elementary and Secondary School Emergency Relief (ESSER) Fund in fiscal year 2024 for fiscal year 2023 was filed with incorrect amounts for expenditures. CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section L., “Reporting” regarding Special Reporting, grantees are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. CAUSE: The District personnel responsible for the report misunderstood the instructions for the completion of the report. Expenditures included those through the date of reporting, rather than only those specific to fiscal year 2022-23. EFFECT: The error resulted in an inaccurate report submission to the Pennsylvania Department of Education. QUESTIONED COSTS: None PROPER PERSPECTIVE (SAMPLING): The District was only required to file one annual report during fiscal year 2023-24 for ESSER. 100% of these reports were tested for compliance. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. In addition, the personnel responsible for the completion of the annual report should review the instructions for the report to obtain a better understanding of the reporting requirements. Further, management should ensure the amounts reported on the upcoming annual report for fiscal year 2023-24 contain only the expenditures for that fiscal year. MANAGEMENT RESPONSE: Management agrees with the recommendations and will contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. The personnel responsible for the completion of the annual report will review the instructions for the report to obtain a better understanding of the reporting requirements. In addition, management will ensure the amounts reported for the upcoming annual report for fiscal year 2023-24 accurately report the expenditures for that fiscal year.
CONDITION: The District’s internal control over compliance failed to prevent errors in the ESSER annual report filed in fiscal year 2024 (for fiscal year 2023). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including properly submitted reports, as discussed in Compliance Finding #2024-001. CAUSE: The cause of the internal control deficiency over the annual reporting was a lack of oversight by management. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Reporting requirements of the Education Stabilization Fund (specifically ESSER reporting). RECOMMENDATION: We recommend that District personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported and retain support for the amounts reported. We further recommend the implementation of a review process by management to ensure the accuracy of the amounts reported. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported. Further, management will implement a review process to confirm the accuracy of the amounts reported.
CONDITION: The annual report filed for the Elementary and Secondary School Emergency Relief (ESSER) Fund in fiscal year 2024 for fiscal year 2023 was filed with incorrect amounts for expenditures. CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section L., “Reporting” regarding Special Reporting, grantees are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. CAUSE: The District personnel responsible for the report misunderstood the instructions for the completion of the report. Expenditures included those through the date of reporting, rather than only those specific to fiscal year 2022-23. EFFECT: The error resulted in an inaccurate report submission to the Pennsylvania Department of Education. QUESTIONED COSTS: None PROPER PERSPECTIVE (SAMPLING): The District was only required to file one annual report during fiscal year 2023-24 for ESSER. 100% of these reports were tested for compliance. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. In addition, the personnel responsible for the completion of the annual report should review the instructions for the report to obtain a better understanding of the reporting requirements. Further, management should ensure the amounts reported on the upcoming annual report for fiscal year 2023-24 contain only the expenditures for that fiscal year. MANAGEMENT RESPONSE: Management agrees with the recommendations and will contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. The personnel responsible for the completion of the annual report will review the instructions for the report to obtain a better understanding of the reporting requirements. In addition, management will ensure the amounts reported for the upcoming annual report for fiscal year 2023-24 accurately report the expenditures for that fiscal year.
CONDITION: The District’s internal control over compliance failed to prevent errors in the ESSER annual report filed in fiscal year 2024 (for fiscal year 2023). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including properly submitted reports, as discussed in Compliance Finding #2024-001. CAUSE: The cause of the internal control deficiency over the annual reporting was a lack of oversight by management. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Reporting requirements of the Education Stabilization Fund (specifically ESSER reporting). RECOMMENDATION: We recommend that District personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported and retain support for the amounts reported. We further recommend the implementation of a review process by management to ensure the accuracy of the amounts reported. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported. Further, management will implement a review process to confirm the accuracy of the amounts reported.
CONDITION: The annual report filed for the Elementary and Secondary School Emergency Relief (ESSER) Fund in fiscal year 2024 for fiscal year 2023 was filed with incorrect amounts for expenditures. CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section L., “Reporting” regarding Special Reporting, grantees are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. CAUSE: The District personnel responsible for the report misunderstood the instructions for the completion of the report. Expenditures included those through the date of reporting, rather than only those specific to fiscal year 2022-23. EFFECT: The error resulted in an inaccurate report submission to the Pennsylvania Department of Education. QUESTIONED COSTS: None PROPER PERSPECTIVE (SAMPLING): The District was only required to file one annual report during fiscal year 2023-24 for ESSER. 100% of these reports were tested for compliance. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. In addition, the personnel responsible for the completion of the annual report should review the instructions for the report to obtain a better understanding of the reporting requirements. Further, management should ensure the amounts reported on the upcoming annual report for fiscal year 2023-24 contain only the expenditures for that fiscal year. MANAGEMENT RESPONSE: Management agrees with the recommendations and will contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. The personnel responsible for the completion of the annual report will review the instructions for the report to obtain a better understanding of the reporting requirements. In addition, management will ensure the amounts reported for the upcoming annual report for fiscal year 2023-24 accurately report the expenditures for that fiscal year.
CONDITION: The District’s internal control over compliance failed to prevent errors in the ESSER annual report filed in fiscal year 2024 (for fiscal year 2023). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including properly submitted reports, as discussed in Compliance Finding #2024-001. CAUSE: The cause of the internal control deficiency over the annual reporting was a lack of oversight by management. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Reporting requirements of the Education Stabilization Fund (specifically ESSER reporting). RECOMMENDATION: We recommend that District personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported and retain support for the amounts reported. We further recommend the implementation of a review process by management to ensure the accuracy of the amounts reported. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported. Further, management will implement a review process to confirm the accuracy of the amounts reported.
CONDITION: The annual report filed for the Elementary and Secondary School Emergency Relief (ESSER) Fund in fiscal year 2024 for fiscal year 2023 was filed with incorrect amounts for expenditures. CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section L., “Reporting” regarding Special Reporting, grantees are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. CAUSE: The District personnel responsible for the report misunderstood the instructions for the completion of the report. Expenditures included those through the date of reporting, rather than only those specific to fiscal year 2022-23. EFFECT: The error resulted in an inaccurate report submission to the Pennsylvania Department of Education. QUESTIONED COSTS: None PROPER PERSPECTIVE (SAMPLING): The District was only required to file one annual report during fiscal year 2023-24 for ESSER. 100% of these reports were tested for compliance. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. In addition, the personnel responsible for the completion of the annual report should review the instructions for the report to obtain a better understanding of the reporting requirements. Further, management should ensure the amounts reported on the upcoming annual report for fiscal year 2023-24 contain only the expenditures for that fiscal year. MANAGEMENT RESPONSE: Management agrees with the recommendations and will contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. The personnel responsible for the completion of the annual report will review the instructions for the report to obtain a better understanding of the reporting requirements. In addition, management will ensure the amounts reported for the upcoming annual report for fiscal year 2023-24 accurately report the expenditures for that fiscal year.
CONDITION: The District’s internal control over compliance failed to prevent errors in the ESSER annual report filed in fiscal year 2024 (for fiscal year 2023). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including properly submitted reports, as discussed in Compliance Finding #2024-001. CAUSE: The cause of the internal control deficiency over the annual reporting was a lack of oversight by management. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Reporting requirements of the Education Stabilization Fund (specifically ESSER reporting). RECOMMENDATION: We recommend that District personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported and retain support for the amounts reported. We further recommend the implementation of a review process by management to ensure the accuracy of the amounts reported. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported. Further, management will implement a review process to confirm the accuracy of the amounts reported.
CONDITION: The annual report filed for the Elementary and Secondary School Emergency Relief (ESSER) Fund in fiscal year 2024 for fiscal year 2023 was filed with incorrect amounts for expenditures. CRITERIA: In accordance with the Uniform Grant Guidance, United States Department of Education, Education Stabilization Fund, Part III, Section L., “Reporting” regarding Special Reporting, grantees are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. CAUSE: The District personnel responsible for the report misunderstood the instructions for the completion of the report. Expenditures included those through the date of reporting, rather than only those specific to fiscal year 2022-23. EFFECT: The error resulted in an inaccurate report submission to the Pennsylvania Department of Education. QUESTIONED COSTS: None PROPER PERSPECTIVE (SAMPLING): The District was only required to file one annual report during fiscal year 2023-24 for ESSER. 100% of these reports were tested for compliance. The audit sample was statistically valid. REPEAT FINDING: No. RECOMMENDATION: We recommend management contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. In addition, the personnel responsible for the completion of the annual report should review the instructions for the report to obtain a better understanding of the reporting requirements. Further, management should ensure the amounts reported on the upcoming annual report for fiscal year 2023-24 contain only the expenditures for that fiscal year. MANAGEMENT RESPONSE: Management agrees with the recommendations and will contact the Pennsylvania Department of Education to inquire as to how to resubmit the annual report with correct amounts. The personnel responsible for the completion of the annual report will review the instructions for the report to obtain a better understanding of the reporting requirements. In addition, management will ensure the amounts reported for the upcoming annual report for fiscal year 2023-24 accurately report the expenditures for that fiscal year.
CONDITION: The District’s internal control over compliance failed to prevent errors in the ESSER annual report filed in fiscal year 2024 (for fiscal year 2023). CRITERIA: Internal controls over federal programs are to be sufficient to ensure compliance with the Education Stabilization Fund grant requirements, including properly submitted reports, as discussed in Compliance Finding #2024-001. CAUSE: The cause of the internal control deficiency over the annual reporting was a lack of oversight by management. EFFECT: The effect of this deficiency in internal controls over federal programs was the District’s failure to comply with the Reporting requirements of the Education Stabilization Fund (specifically ESSER reporting). RECOMMENDATION: We recommend that District personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported and retain support for the amounts reported. We further recommend the implementation of a review process by management to ensure the accuracy of the amounts reported. MANAGEMENT RESPONSE: Management agrees with the recommendations and will have personnel responsible for the completion of the annual report review the instructions for the report to ensure the proper period is being reported. Further, management will implement a review process to confirm the accuracy of the amounts reported.