FAC Explorer

Audit 338584

FY End
2024-08-31
Total Expended
$887,448
Findings
4
Programs
10
Organization: Prairie Lea Independent School District (TX)
Year: 2024 Accepted: 2025-01-17
Auditor: Singleton Clark & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519540 2024-006 - - B
519541 2024-006 - - B
1095982 2024-006 - - B
1095983 2024-006 - - B

Programs

ALN Program Spent Major Findings
84.425U Esser III Tclas - High Quality After School $260,578 Yes 1
84.425U Tclas - Esser III $213,459 Yes 1
10.555 National School Lunch Program $171,125 - 0
10.553 National School Breakfast Program $95,727 - 0
84.010A Esea, Title I, Part A - Improving Basic Programs $93,028 - 0
84.358A Rural Education Achievement Program (reap) $24,414 - 0
10.555 Food Distribution Program - Non-Cash Assistance $12,457 - 0
84.367A Esea, Title Ii, Part A - Teacher and Principal Training $8,608 - 0
84.424A Title Iv, Part A, Subpart 1 $6,978 - 0
10.649 Pandemic Electronic Benefit Transfer $1,074 - 0

Contacts

Name Title Type
M9KRGB7XY2H8 Eric Tober Auditee
5124882328 Preston Singleton Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards expenditures of Prairie Lea Independent School District (the “District”) under programs of the federal government for the year ended August 31, 2024. The information in the accompanying 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 financial position, change in net position, or cash flows of the District. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting - The expenditures reported on the Schedule are presented using the modified-accrual basis of accounting, with the exception of the National School Lunch Program, School Breakfast Program and the Food Distribution Program. Under the modified-accrual basis of accounting, revenues are recognized in the accounting period in which they become measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Expenditures for the National School Lunch Program, School Breakfast Program and the Food Distribution Program are shown on the Schedule in an amount equal to the related revenue, but are not specifically attributable to this revenue source. Expenditures are reported in this manner due to the Child Nutrition Fund being a fund that combines local, state, and federal revenues, and spends those resources together to support the overall operations of the Child Nutrition Program. The District has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Relationship to Basic Financial Statements - Expenditures of federal awards are reported in the District’s basic financial statements in the special revenue funds. Relationship to Federal Financial Reports - Amounts reported in the accompanying Schedule agree with the amounts reported in the related federal financial reports in all significant respects. Valuation of Non-Cash Programs – The District values revenues and expenditures for the Food Distribution Program based on the value of commodities received. De Minimis Rate Used: N Rate Explanation: The District has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-006
2024-006 Questioned Cost – Employee Stipends (Federal Single Audit) Criteria: Expenditures made with both state and federal grant funds for employee compensation should be reasonable in consideration of job responsibilities. Condition Found: During our review of employee compensation paid with state and federal grants, we noted several instances of stipends paid to employees, including administrators, that appeared excessive in consideration of job titles and traditional assigned duties. Cause: The cause is believed to be from an overly broad interpretation of how budgeted stipends could be allocated across staff. Effect: The effect is a potential misuse of grant funds ultimately to be determined by the grantor. Recommendation: We recommend more transparency in the process of awarding employee stipends in the future.
Finding 2024-006
2024-006 Questioned Cost – Employee Stipends (Federal Single Audit) Criteria: Expenditures made with both state and federal grant funds for employee compensation should be reasonable in consideration of job responsibilities. Condition Found: During our review of employee compensation paid with state and federal grants, we noted several instances of stipends paid to employees, including administrators, that appeared excessive in consideration of job titles and traditional assigned duties. Cause: The cause is believed to be from an overly broad interpretation of how budgeted stipends could be allocated across staff. Effect: The effect is a potential misuse of grant funds ultimately to be determined by the grantor. Recommendation: We recommend more transparency in the process of awarding employee stipends in the future.
Finding 2024-006
2024-006 Questioned Cost – Employee Stipends (Federal Single Audit) Criteria: Expenditures made with both state and federal grant funds for employee compensation should be reasonable in consideration of job responsibilities. Condition Found: During our review of employee compensation paid with state and federal grants, we noted several instances of stipends paid to employees, including administrators, that appeared excessive in consideration of job titles and traditional assigned duties. Cause: The cause is believed to be from an overly broad interpretation of how budgeted stipends could be allocated across staff. Effect: The effect is a potential misuse of grant funds ultimately to be determined by the grantor. Recommendation: We recommend more transparency in the process of awarding employee stipends in the future.
Finding 2024-006
2024-006 Questioned Cost – Employee Stipends (Federal Single Audit) Criteria: Expenditures made with both state and federal grant funds for employee compensation should be reasonable in consideration of job responsibilities. Condition Found: During our review of employee compensation paid with state and federal grants, we noted several instances of stipends paid to employees, including administrators, that appeared excessive in consideration of job titles and traditional assigned duties. Cause: The cause is believed to be from an overly broad interpretation of how budgeted stipends could be allocated across staff. Effect: The effect is a potential misuse of grant funds ultimately to be determined by the grantor. Recommendation: We recommend more transparency in the process of awarding employee stipends in the future.