FAC Explorer

Audit 349193

FY End
2024-06-30
Total Expended
$6.57M
Findings
2
Programs
15
Organization: Central Regional Education Association (ND)
Year: 2024 Accepted: 2025-03-27
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
538160 2024-003 Significant Deficiency - AB
1114602 2024-003 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3.40M Yes 1
84.287 Twenty-First Century Community Learning Centers $672,771 - 0
84.010 Title I Grants to Local Educational Agencies $386,617 - 0
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $314,800 - 0
16.548 Delinquency Prevention Program $298,369 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $289,734 - 0
93.110 Maternal and Child Health Federal Consolidated Programs $262,240 - 0
84.425 Education Stabilization Fund $258,950 - 0
84.027 Special Education Grants to States $237,614 - 0
10.558 Child and Adult Care Food Program $71,811 - 0
93.994 Maternal and Child Health Services Block Grant to the States $33,900 - 0
84.365 English Language Acquisition State Grants $29,529 - 0
16.839 Stop School Violence $20,927 - 0
45.025 Promotion of the Arts Partnership Agreements $12,430 - 0
84.173 Special Education Preschool Grants $7,920 - 0

Contacts

Name Title Type
DFS5WKMDXLN8 Luke Schaefer Auditee
7014150455 Mindy Piatz Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (the “Schedule”) are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Association has elected to not to use the 10-percent de minimus 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 Central Regional Education Association 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 Central Regional Education Association, it is not intended to and does not present the financial statements of the governmental activities, each major fund, and remaining fund information of Central Regional Education Association.
Title: AGENCY OR PASS-THROUGH NUMBER Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (the “Schedule”) are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Association has elected to not to use the 10-percent de minimus indirect cost rate as allowed under the uniform guidance. Central Regional Education Association received money passed through from multiple grantor agencies. There were no pass-through numbers identified with a few of the grants identified above.

Finding Details

Finding 2024-003
AL# 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Activities Allowable/ Allowable Costs/Cost Principles Criteria The Association is required to maintain internal controls at a level where underlying support for federal award disbursements can be developed and a determination can be made that the federal awards are getting disbursed properly in accordance with the grant requirements. Condition There is a lack of internal control around the review of allowable costs of federal funds and the distributions of those funds. Cause The Association is subject to size and budget constraints limiting the number of personnel within the grant department. Effect The design of internal control over financial reporting could adversely affect the ability to record, process, summarize and report federal awards in accordance with grant requirements. Questioned Costs $0 Effect The design of internal control over financial reporting could adversely affect the ability to record, process, summarize and report federal awards in accordance with grant requirements. Recommendation We recommend the Association review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. View of responsible officials and corrective actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Association.
Finding 2024-003
AL# 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Activities Allowable/ Allowable Costs/Cost Principles Criteria The Association is required to maintain internal controls at a level where underlying support for federal award disbursements can be developed and a determination can be made that the federal awards are getting disbursed properly in accordance with the grant requirements. Condition There is a lack of internal control around the review of allowable costs of federal funds and the distributions of those funds. Cause The Association is subject to size and budget constraints limiting the number of personnel within the grant department. Effect The design of internal control over financial reporting could adversely affect the ability to record, process, summarize and report federal awards in accordance with grant requirements. Questioned Costs $0 Effect The design of internal control over financial reporting could adversely affect the ability to record, process, summarize and report federal awards in accordance with grant requirements. Recommendation We recommend the Association review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. View of responsible officials and corrective actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Association.