FAC Explorer

Audit 340291

FY End
2024-06-30
Total Expended
$16.44M
Findings
6
Programs
11
Organization: Euclid City School District (OH)
Year: 2024 Accepted: 2025-01-29
Auditor: Ohio Auditor of State Keith Faber

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520628 2024-001 Material Weakness - L
520629 2024-001 Material Weakness - L
520630 2024-001 Material Weakness - L
1097070 2024-001 Material Weakness - L
1097071 2024-001 Material Weakness - L
1097072 2024-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $3.08M - 0
10.555 National School Lunch Program $2.39M Yes 1
84.027 Special Education Grants to States $1.53M - 0
10.553 School Breakfast Program $721,271 Yes 1
84.287 Twenty-First Century Community Learning Centers $423,966 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $377,151 - 0
93.600 Head Start $224,508 - 0
10.559 Summer Food Service Program for Children $46,024 Yes 1
84.173 Special Education Preschool Grants $38,630 - 0
84.425 Covid-19 Education Stabilization Fund $11,572 Yes 0
84.424 Student Support and Academic Enrichment Program $1,350 - 0

Contacts

Name Title Type
JLUJR2NQ13X4 Patrick Higley Auditee
2167972915 William Ward Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Euclid City School District (the District) under programs of the federal government for the year ended June 30, 2024. The information on this Schedule is prepared 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, changes in net position, or cash flows of the District.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
Title: NOTE C – INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE D - CHILD NUTRITION CLUSTER Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the District assumes it expends federal monies first.
Title: NOTE E– FOOD DONATION PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District reports commodities consumed on the Schedule at the fair value. The District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.
Title: NOTE F - TRANSFERS BETWEEN PROGRAM YEARS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal regulations require schools to obligate certain federal awards by June 30. However, with DEW’s consent, schools can transfer unobligated amounts to the subsequent fiscal year’s program. The District transferred the following amounts from 2024 to 2025 programs: See Notes for Table

Finding Details

Finding 2024-001
7 CFR § 210.8(a) states, "The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems." 7 CFR § 220.11(b) states in part, claims for reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State Agency to provide the Reports of School Program Operations required under § 220.13(b)(2). In Ohio, the Ohio Department of Education and Workforce (DEW) requires school districts to use the Claims Reporting and Reimbursement System (CRRS) to report meal data for reimbursement. Due to insufficient controls over reporting, related to breakfast and lunch meal counts, three of the three (100%) months tested were inaccurate. This led to inaccuracies in meal counts reported in the CRRS system, as shown below: Month Type Recalculated Meal Count Reported Meal Count Variance(s) September 2023 Lunch 67,752 66,644 (1,108) March 2024 Breakfast 36,260 47,095 10,835 Lunch 66,089 55,254 (10,835) May 2024 Lunch 55,403 55,072 (331) This weakness resulted in a loss of accountability over meal count reporting and could lead to a reduction or forfeiture of future funding for this program. The District should develop control policies and procedures to ensure the number of meals served and reported to DEW agree to the respective daily meal count forms and the meals served / tabulated. The procedures should include an independent review of the meal counts manually entered into the point-of-sale system, based upon the daily meal count forms, and the meal counts manually entered into CRRS by an employee not associated with the computer entry. These review procedures should be acknowledged by initials / signatures. If there are errors or discrepancies between meals served / tabulated and the amounts reported to DEW, the District should maintain supporting documentation to demonstrate the meals reported to DEW were accurate and complete.
Finding 2024-001
7 CFR § 210.8(a) states, "The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems." 7 CFR § 220.11(b) states in part, claims for reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State Agency to provide the Reports of School Program Operations required under § 220.13(b)(2). In Ohio, the Ohio Department of Education and Workforce (DEW) requires school districts to use the Claims Reporting and Reimbursement System (CRRS) to report meal data for reimbursement. Due to insufficient controls over reporting, related to breakfast and lunch meal counts, three of the three (100%) months tested were inaccurate. This led to inaccuracies in meal counts reported in the CRRS system, as shown below: Month Type Recalculated Meal Count Reported Meal Count Variance(s) September 2023 Lunch 67,752 66,644 (1,108) March 2024 Breakfast 36,260 47,095 10,835 Lunch 66,089 55,254 (10,835) May 2024 Lunch 55,403 55,072 (331) This weakness resulted in a loss of accountability over meal count reporting and could lead to a reduction or forfeiture of future funding for this program. The District should develop control policies and procedures to ensure the number of meals served and reported to DEW agree to the respective daily meal count forms and the meals served / tabulated. The procedures should include an independent review of the meal counts manually entered into the point-of-sale system, based upon the daily meal count forms, and the meal counts manually entered into CRRS by an employee not associated with the computer entry. These review procedures should be acknowledged by initials / signatures. If there are errors or discrepancies between meals served / tabulated and the amounts reported to DEW, the District should maintain supporting documentation to demonstrate the meals reported to DEW were accurate and complete.
Finding 2024-001
7 CFR § 210.8(a) states, "The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems." 7 CFR § 220.11(b) states in part, claims for reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State Agency to provide the Reports of School Program Operations required under § 220.13(b)(2). In Ohio, the Ohio Department of Education and Workforce (DEW) requires school districts to use the Claims Reporting and Reimbursement System (CRRS) to report meal data for reimbursement. Due to insufficient controls over reporting, related to breakfast and lunch meal counts, three of the three (100%) months tested were inaccurate. This led to inaccuracies in meal counts reported in the CRRS system, as shown below: Month Type Recalculated Meal Count Reported Meal Count Variance(s) September 2023 Lunch 67,752 66,644 (1,108) March 2024 Breakfast 36,260 47,095 10,835 Lunch 66,089 55,254 (10,835) May 2024 Lunch 55,403 55,072 (331) This weakness resulted in a loss of accountability over meal count reporting and could lead to a reduction or forfeiture of future funding for this program. The District should develop control policies and procedures to ensure the number of meals served and reported to DEW agree to the respective daily meal count forms and the meals served / tabulated. The procedures should include an independent review of the meal counts manually entered into the point-of-sale system, based upon the daily meal count forms, and the meal counts manually entered into CRRS by an employee not associated with the computer entry. These review procedures should be acknowledged by initials / signatures. If there are errors or discrepancies between meals served / tabulated and the amounts reported to DEW, the District should maintain supporting documentation to demonstrate the meals reported to DEW were accurate and complete.
Finding 2024-001
7 CFR § 210.8(a) states, "The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems." 7 CFR § 220.11(b) states in part, claims for reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State Agency to provide the Reports of School Program Operations required under § 220.13(b)(2). In Ohio, the Ohio Department of Education and Workforce (DEW) requires school districts to use the Claims Reporting and Reimbursement System (CRRS) to report meal data for reimbursement. Due to insufficient controls over reporting, related to breakfast and lunch meal counts, three of the three (100%) months tested were inaccurate. This led to inaccuracies in meal counts reported in the CRRS system, as shown below: Month Type Recalculated Meal Count Reported Meal Count Variance(s) September 2023 Lunch 67,752 66,644 (1,108) March 2024 Breakfast 36,260 47,095 10,835 Lunch 66,089 55,254 (10,835) May 2024 Lunch 55,403 55,072 (331) This weakness resulted in a loss of accountability over meal count reporting and could lead to a reduction or forfeiture of future funding for this program. The District should develop control policies and procedures to ensure the number of meals served and reported to DEW agree to the respective daily meal count forms and the meals served / tabulated. The procedures should include an independent review of the meal counts manually entered into the point-of-sale system, based upon the daily meal count forms, and the meal counts manually entered into CRRS by an employee not associated with the computer entry. These review procedures should be acknowledged by initials / signatures. If there are errors or discrepancies between meals served / tabulated and the amounts reported to DEW, the District should maintain supporting documentation to demonstrate the meals reported to DEW were accurate and complete.
Finding 2024-001
7 CFR § 210.8(a) states, "The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems." 7 CFR § 220.11(b) states in part, claims for reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State Agency to provide the Reports of School Program Operations required under § 220.13(b)(2). In Ohio, the Ohio Department of Education and Workforce (DEW) requires school districts to use the Claims Reporting and Reimbursement System (CRRS) to report meal data for reimbursement. Due to insufficient controls over reporting, related to breakfast and lunch meal counts, three of the three (100%) months tested were inaccurate. This led to inaccuracies in meal counts reported in the CRRS system, as shown below: Month Type Recalculated Meal Count Reported Meal Count Variance(s) September 2023 Lunch 67,752 66,644 (1,108) March 2024 Breakfast 36,260 47,095 10,835 Lunch 66,089 55,254 (10,835) May 2024 Lunch 55,403 55,072 (331) This weakness resulted in a loss of accountability over meal count reporting and could lead to a reduction or forfeiture of future funding for this program. The District should develop control policies and procedures to ensure the number of meals served and reported to DEW agree to the respective daily meal count forms and the meals served / tabulated. The procedures should include an independent review of the meal counts manually entered into the point-of-sale system, based upon the daily meal count forms, and the meal counts manually entered into CRRS by an employee not associated with the computer entry. These review procedures should be acknowledged by initials / signatures. If there are errors or discrepancies between meals served / tabulated and the amounts reported to DEW, the District should maintain supporting documentation to demonstrate the meals reported to DEW were accurate and complete.
Finding 2024-001
7 CFR § 210.8(a) states, "The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems." 7 CFR § 220.11(b) states in part, claims for reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State Agency to provide the Reports of School Program Operations required under § 220.13(b)(2). In Ohio, the Ohio Department of Education and Workforce (DEW) requires school districts to use the Claims Reporting and Reimbursement System (CRRS) to report meal data for reimbursement. Due to insufficient controls over reporting, related to breakfast and lunch meal counts, three of the three (100%) months tested were inaccurate. This led to inaccuracies in meal counts reported in the CRRS system, as shown below: Month Type Recalculated Meal Count Reported Meal Count Variance(s) September 2023 Lunch 67,752 66,644 (1,108) March 2024 Breakfast 36,260 47,095 10,835 Lunch 66,089 55,254 (10,835) May 2024 Lunch 55,403 55,072 (331) This weakness resulted in a loss of accountability over meal count reporting and could lead to a reduction or forfeiture of future funding for this program. The District should develop control policies and procedures to ensure the number of meals served and reported to DEW agree to the respective daily meal count forms and the meals served / tabulated. The procedures should include an independent review of the meal counts manually entered into the point-of-sale system, based upon the daily meal count forms, and the meal counts manually entered into CRRS by an employee not associated with the computer entry. These review procedures should be acknowledged by initials / signatures. If there are errors or discrepancies between meals served / tabulated and the amounts reported to DEW, the District should maintain supporting documentation to demonstrate the meals reported to DEW were accurate and complete.