FAC Explorer

Audit 34526

FY End
2022-06-30
Total Expended
$3.68M
Findings
2
Programs
25
Organization: Lake Station Community Schools (IN)
Year: 2022 Accepted: 2023-04-05
Auditor: Indiana State Board of Accounts

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35965 2022-003 Material Weakness - L
612407 2022-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies Fy 21 $427,347 - 0
84.027 Special Education_grants to States Fy 22 $339,393 - 0
84.027 Special Education_grants to States Fy 21 $306,075 - 0
84.425 Education Stabilization Fund Fy 22 $262,596 Yes 0
84.425 Education Stabilization Fund Fy 21 $223,526 Yes 0
10.553 School Breakfast Program Fy 22 $185,605 Yes 0
84.010 Title I Grants to Local Educational Agencies Fy 22 $184,562 - 0
10.559 Summer Food Service Program for Children Fy 22 $64,013 Yes 0
84.367 Improving Teacher Quality State Grants Fy 21 $63,070 - 0
10.559 Summer Food Service Program for Children Fy 21 $55,883 Yes 0
10.555 National School Lunch Program Fy 22 $48,292 Yes 0
93.778 Medical Assistance Program Fy 22 $41,777 - 0
84.424 Student Support and Academic Enrichment Program Fy 21 $26,306 - 0
84.027 Individuals with Disabilities Education Act/american Rescue Plan Act of 2021(arp) $25,820 - 0
10.555 National School Lunch Program Fy 21 $25,328 Yes 0
84.365 English Language Acquisition State Grants Fy 21 $21,057 - 0
81.041 State Energy Program Fy 21 $20,000 - 0
93.778 Medical Assistance Program Fy 21 $13,282 - 0
10.553 School Breakfast Program Fy 21 $12,185 Yes 0
84.424 Student Support and Academic Enrichment Program Fy 22 $10,385 - 0
84.367 Improving Teacher Quality State Grants Fy 22 $10,306 - 0
84.173 Special Education_preschool Grants Fy 22 $7,201 - 0
84.173 Special Education_preschool Grants Fy 21 $7,024 - 0
84.365 English Language Acquisition State Grants Fy 22 $2,789 - 0
84.173 Individuals with Disabilities Education Act/american Rescue Plan Act of 2021(arp) $1,869 - 0

Contacts

Name Title Type
JB8CWJLN1PE8 Tammy Whisenant Auditee
2199621159 Beth Kelley, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Northwest Indiana Special Education Cooperative Accounting Policies: Note 1. Summary of Significant Accounting PoliciesA. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federalgrant activity of the School Corporation under programs of the federal government for theyears ended June 30, 2021 and 2022. The information in the SEFA is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the SEFA presents only a select portion of the operations ofthe School Corporation, it is not intended to and does not present the financial position of theSchool Corporation.The Uniform Guidance requires an annual audit of nonfederal entities expending a totalamount of federal awards equal to or in excess of $750,000 in any fiscal year unless byconstitution or statute a less frequent audit is required. In accordance with Indiana Code(IC 5-11-1-25), audits of school corporations shall be conducted biennially. Such audits shallinclude both years within the biennial period.B. Other Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the cash basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMBCircular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowed or are limited as to reimbursement. When federal grants are received on a reimbursementbasis, the federal awards are considered expended when the reimbursement isreceived. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note 3. Northwest Indiana Special Education CooperativeThe School Corporation is a member of the Northwest Indiana Special Education Cooperative(Cooperative). As a result, some of the activity for the Special Education Cluster (IDEA) that ispresented on the SEFA is not presented as receipts and disbursements in the financial statementfor the School Corporation. This activity is presented in the financial statement of theCooperative's fiscal agent.

Finding Details

Finding 2022-003
FINDING 2022-003 Subject: COVID-19 - Education Stabilization Fund - Reporting Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425C Federal Award Number and Year (or Other Identifying Number): S425C200018 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirement. INDIANA STATE BOARD OF ACCOUNTS 19 LAKE STATION COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation completed three annual Elementary and Secondary School Emergency Relief (ESSER) and two Governor's Emergency Education Relief (GEER) annual Data Collection reports (Reports) during the audit period. Data on one report, the GEER I, Year 1 annual report, did not agree to unit's ledger. The expenditures reported on the GEER I, Year 1 annual report were $202,500; however, the School Corporation had no expenditures from the GEER fund during the year 1 reporting period. The lack of internal controls and noncompliance were isolated to the GEER I, Year 1 annual report. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following . . . (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 and 200.329. . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Cause Management had not established a system of internal controls that would have ensured compliance with the grant agreement and the Reporting compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Reporting compliance requirement could result in the loss of future federal funds to the School Corporation. INDIANA STATE BOARD OF ACCOUNTS 20 LAKE STATION COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Reporting compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Finding 2022-003
FINDING 2022-003 Subject: COVID-19 - Education Stabilization Fund - Reporting Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425C Federal Award Number and Year (or Other Identifying Number): S425C200018 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirement. INDIANA STATE BOARD OF ACCOUNTS 19 LAKE STATION COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation completed three annual Elementary and Secondary School Emergency Relief (ESSER) and two Governor's Emergency Education Relief (GEER) annual Data Collection reports (Reports) during the audit period. Data on one report, the GEER I, Year 1 annual report, did not agree to unit's ledger. The expenditures reported on the GEER I, Year 1 annual report were $202,500; however, the School Corporation had no expenditures from the GEER fund during the year 1 reporting period. The lack of internal controls and noncompliance were isolated to the GEER I, Year 1 annual report. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following . . . (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 and 200.329. . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Cause Management had not established a system of internal controls that would have ensured compliance with the grant agreement and the Reporting compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Reporting compliance requirement could result in the loss of future federal funds to the School Corporation. INDIANA STATE BOARD OF ACCOUNTS 20 LAKE STATION COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Reporting compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.