Audit 345379

FY End
2024-06-30
Total Expended
$6.49M
Findings
2
Programs
10
Year: 2024 Accepted: 2025-03-10

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
526451 2024-001 Significant Deficiency - L
1102893 2024-001 Significant Deficiency - L

Contacts

Name Title Type
KMUGV8HXW3C8 Katie Henes Auditee
4405885317 Chad Gorfido 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 North Olmsted 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 entitlement value. The District allocated donated food commodities to the respective programs 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 Ohio Department of Education and Workforce’s consent, schools can transfer unobligated amounts to subsequent fiscal year’s program. The District transferred the following amounts from 2023 to 2024 programs:

Finding Details

Finding Number: 2024-001 Federal Program: Education Stabilization Fund – ARP ESSER Federal Award Identification Number and Year: 2024 Assistance Listing Number (ALN): 84.425U Federal Awarding Agency: U.S. Department of Education Pass-through Entity: Department of Education and Workforce Repeat Finding: No Significant Deficiency and Noncompliance – Reporting Criteria: Grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Educational entities must complete the Final Expenditure Report (FER) at the end of each fiscal year for the prior state fiscal year’s ESSER expenditures. All expenses reported on the FER should be paid. Condition: The District’s FER for the ARP ESSER Grant did not match the District’s ledgers. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: All expenses reported on the FER are based off actual expenditures paid during the award year. Cause and Effect: The District did not accurately prepare the FER based on actual expenditures. We noted there was a $241,096 variance in classifications between the 100 and 200 object codes in comparison to the District’s ledgers. Recommendation: The District should implement controls and processes to ensure that FER agrees to the District’s ledgers when submitting their FER. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2024-001 Federal Program: Education Stabilization Fund – ARP ESSER Federal Award Identification Number and Year: 2024 Assistance Listing Number (ALN): 84.425U Federal Awarding Agency: U.S. Department of Education Pass-through Entity: Department of Education and Workforce Repeat Finding: No Significant Deficiency and Noncompliance – Reporting Criteria: Grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Educational entities must complete the Final Expenditure Report (FER) at the end of each fiscal year for the prior state fiscal year’s ESSER expenditures. All expenses reported on the FER should be paid. Condition: The District’s FER for the ARP ESSER Grant did not match the District’s ledgers. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: All expenses reported on the FER are based off actual expenditures paid during the award year. Cause and Effect: The District did not accurately prepare the FER based on actual expenditures. We noted there was a $241,096 variance in classifications between the 100 and 200 object codes in comparison to the District’s ledgers. Recommendation: The District should implement controls and processes to ensure that FER agrees to the District’s ledgers when submitting their FER. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.