FAC Explorer

Audit 344208

FY End
2024-06-30
Total Expended
$4.03M
Findings
6
Programs
13
Organization: Octorara Area School District (PA)
Year: 2024 Accepted: 2025-02-28
Auditor: Herbein + Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524819 2024-002 Significant Deficiency - L
524820 2024-002 Significant Deficiency - L
524821 2024-002 Significant Deficiency - L
1101261 2024-002 Significant Deficiency - L
1101262 2024-002 Significant Deficiency - L
1101263 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $719,848 Yes 0
84.027 Special Education Grants to States $288,753 - 0
10.553 School Breakfast Program $240,554 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $95,691 - 0
10.555 National School Lunch Program $83,031 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $80,296 - 0
84.425 Education Stabilization Fund $66,324 Yes 1
84.424 Student Support and Academic Enrichment Program $53,125 - 0
84.048 Career and Technical Education -- Basic Grants to States $43,376 - 0
84.365 English Language Acquisition State Grants $14,832 - 0
93.778 Medical Assistance Program $5,442 - 0
10.649 Pandemic Ebt Administrative Costs $3,256 - 0
84.173 Special Education Preschool Grants $472 - 0

Contacts

Name Title Type
YVMAC3CQB1M7 Scott Domowicz Auditee
6105938214 Megan Thompson Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business for amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis rate for indirect costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Octorara 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 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 Octorara Area School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of Octorara Area School District.
Title: ACCESS PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business for amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis rate for indirect costs. The District participates in the ACCESS Program which is a medical assistance program that reimburses local educational agencies for direct eligible health-related services provided to enrolled special needs students. Reimbursements are federal source revenues but are classified as fee-for-service and are not considered federal financial assistance. The amount of ACCESS funding classified as fee-for-service and recognized for the year ended June 30, 2024 was $57,852.
Title: FOOD COMMODITIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business for amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis rate for indirect costs. 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 $6,326 of food commodity inventory.

Finding Details

Finding 2024-002
2024-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; U.S. Department of Education passed through the Pennsylvania Department of Education; Grant 225-21-0308 (Period 3/13/20 - 9/30/24). Criteria The grant agreement for the Education Stabilization Fund programs requires the District to file an LEA ESSER Funding Status Report on an annual basis, outlining amounts expended under the various Education Stabilization Fund awards. Condition/Cause We tested the report filed during the 2023-2024 school year which reported expenditures for the 2022-2023 fiscal year. We were unable to agree expenditures reported to the 2022-2023 expenses recorded and reported on the schedule of expenditures of federal awards. Effect Expenditures for the 2022-2023 fiscal year were not accurately reported on the LEA ESSER Funding Status Report. Questioned Costs None. Context Expenditures reported for the Learning Loss Set Aside were $13,775 less than what was expended, expenditures reported for the summer enrichment set aside were $6,839 more than what was expended, and expenditures for the afterschool programs set aside were $2,755 less than what was expended. Repeat Finding No. Recommendation We recommend the District review their internal controls over reporting to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. This should involve review for accuracy by an individual who is independent of the preparer. Management Response See corrective action plan included in this report package.
Finding 2024-002
2024-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; U.S. Department of Education passed through the Pennsylvania Department of Education; Grant 225-21-0308 (Period 3/13/20 - 9/30/24). Criteria The grant agreement for the Education Stabilization Fund programs requires the District to file an LEA ESSER Funding Status Report on an annual basis, outlining amounts expended under the various Education Stabilization Fund awards. Condition/Cause We tested the report filed during the 2023-2024 school year which reported expenditures for the 2022-2023 fiscal year. We were unable to agree expenditures reported to the 2022-2023 expenses recorded and reported on the schedule of expenditures of federal awards. Effect Expenditures for the 2022-2023 fiscal year were not accurately reported on the LEA ESSER Funding Status Report. Questioned Costs None. Context Expenditures reported for the Learning Loss Set Aside were $13,775 less than what was expended, expenditures reported for the summer enrichment set aside were $6,839 more than what was expended, and expenditures for the afterschool programs set aside were $2,755 less than what was expended. Repeat Finding No. Recommendation We recommend the District review their internal controls over reporting to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. This should involve review for accuracy by an individual who is independent of the preparer. Management Response See corrective action plan included in this report package.
Finding 2024-002
2024-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; U.S. Department of Education passed through the Pennsylvania Department of Education; Grant 225-21-0308 (Period 3/13/20 - 9/30/24). Criteria The grant agreement for the Education Stabilization Fund programs requires the District to file an LEA ESSER Funding Status Report on an annual basis, outlining amounts expended under the various Education Stabilization Fund awards. Condition/Cause We tested the report filed during the 2023-2024 school year which reported expenditures for the 2022-2023 fiscal year. We were unable to agree expenditures reported to the 2022-2023 expenses recorded and reported on the schedule of expenditures of federal awards. Effect Expenditures for the 2022-2023 fiscal year were not accurately reported on the LEA ESSER Funding Status Report. Questioned Costs None. Context Expenditures reported for the Learning Loss Set Aside were $13,775 less than what was expended, expenditures reported for the summer enrichment set aside were $6,839 more than what was expended, and expenditures for the afterschool programs set aside were $2,755 less than what was expended. Repeat Finding No. Recommendation We recommend the District review their internal controls over reporting to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. This should involve review for accuracy by an individual who is independent of the preparer. Management Response See corrective action plan included in this report package.
Finding 2024-002
2024-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; U.S. Department of Education passed through the Pennsylvania Department of Education; Grant 225-21-0308 (Period 3/13/20 - 9/30/24). Criteria The grant agreement for the Education Stabilization Fund programs requires the District to file an LEA ESSER Funding Status Report on an annual basis, outlining amounts expended under the various Education Stabilization Fund awards. Condition/Cause We tested the report filed during the 2023-2024 school year which reported expenditures for the 2022-2023 fiscal year. We were unable to agree expenditures reported to the 2022-2023 expenses recorded and reported on the schedule of expenditures of federal awards. Effect Expenditures for the 2022-2023 fiscal year were not accurately reported on the LEA ESSER Funding Status Report. Questioned Costs None. Context Expenditures reported for the Learning Loss Set Aside were $13,775 less than what was expended, expenditures reported for the summer enrichment set aside were $6,839 more than what was expended, and expenditures for the afterschool programs set aside were $2,755 less than what was expended. Repeat Finding No. Recommendation We recommend the District review their internal controls over reporting to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. This should involve review for accuracy by an individual who is independent of the preparer. Management Response See corrective action plan included in this report package.
Finding 2024-002
2024-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; U.S. Department of Education passed through the Pennsylvania Department of Education; Grant 225-21-0308 (Period 3/13/20 - 9/30/24). Criteria The grant agreement for the Education Stabilization Fund programs requires the District to file an LEA ESSER Funding Status Report on an annual basis, outlining amounts expended under the various Education Stabilization Fund awards. Condition/Cause We tested the report filed during the 2023-2024 school year which reported expenditures for the 2022-2023 fiscal year. We were unable to agree expenditures reported to the 2022-2023 expenses recorded and reported on the schedule of expenditures of federal awards. Effect Expenditures for the 2022-2023 fiscal year were not accurately reported on the LEA ESSER Funding Status Report. Questioned Costs None. Context Expenditures reported for the Learning Loss Set Aside were $13,775 less than what was expended, expenditures reported for the summer enrichment set aside were $6,839 more than what was expended, and expenditures for the afterschool programs set aside were $2,755 less than what was expended. Repeat Finding No. Recommendation We recommend the District review their internal controls over reporting to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. This should involve review for accuracy by an individual who is independent of the preparer. Management Response See corrective action plan included in this report package.
Finding 2024-002
2024-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; U.S. Department of Education passed through the Pennsylvania Department of Education; Grant 225-21-0308 (Period 3/13/20 - 9/30/24). Criteria The grant agreement for the Education Stabilization Fund programs requires the District to file an LEA ESSER Funding Status Report on an annual basis, outlining amounts expended under the various Education Stabilization Fund awards. Condition/Cause We tested the report filed during the 2023-2024 school year which reported expenditures for the 2022-2023 fiscal year. We were unable to agree expenditures reported to the 2022-2023 expenses recorded and reported on the schedule of expenditures of federal awards. Effect Expenditures for the 2022-2023 fiscal year were not accurately reported on the LEA ESSER Funding Status Report. Questioned Costs None. Context Expenditures reported for the Learning Loss Set Aside were $13,775 less than what was expended, expenditures reported for the summer enrichment set aside were $6,839 more than what was expended, and expenditures for the afterschool programs set aside were $2,755 less than what was expended. Repeat Finding No. Recommendation We recommend the District review their internal controls over reporting to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. This should involve review for accuracy by an individual who is independent of the preparer. Management Response See corrective action plan included in this report package.