FAC Explorer

Audit 350679

FY End
2024-06-30
Total Expended
$1.16M
Findings
4
Programs
8
Organization: Ninnekah School District I-51 (OK)
Year: 2024 Accepted: 2025-03-31
Auditor: Britton Kuykendall & Miller Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
541077 2024-003 Material Weakness - N
541078 2024-004 Material Weakness Yes N
1117519 2024-003 Material Weakness - N
1117520 2024-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $459,525 Yes 2
84.010 Title I Grants to Local Educational Agencies $154,802 - 0
84.424 Student Support and Academic Enrichment Program $126,025 Yes 0
10.553 School Breakfast Program $103,515 - 0
10.555 National School Lunch Program $15,171 - 0
84.358 Rural Education $12,840 - 0
84.027 Special Education Grants to States $7,116 - 0
15.130 Indian Education Assistance to Schools $1,597 - 0

Contacts

Name Title Type
EKXNLLKG28Z3 Cyndi Brackeen Auditee
4052244092 Rick Miller Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Nonmonetary assistance in the form of commodities is reported in the Schedule at the fair market value of the commodities received and disbursed. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Also, there were no awards passed through to sub-recipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Ninnekah Independent School District No. 51, Grady County, Oklahoma 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 Ninnekah Independent School District No. 51, Grady County, Oklahoma, it is not intended to and does not present the financial position, changes in net position, or cash flows of Ninnekah Independent School District No. 51, Grady County, Oklahoma.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the Schedule are reported on the regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Nonmonetary assistance in the form of commodities is reported in the Schedule at the fair market value of the commodities received and disbursed. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Also, there were no awards passed through to sub-recipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported in the Schedule are reported on the regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Nonmonetary assistance in the form of commodities is reported in the Schedule at the fair market value of the commodities received and disbursed. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Also, there were no awards passed through to sub-recipients.

Finding Details

Finding 2024-003
Material Weaknesses: 2024-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 ARP ESSER III Assistance Listing: 84.425U Grant Period: Year Ending June 30, 2024 Condition: Federal expenditures were not properly accounted for in the Oklahoma Cost Accounting System in the federal project. Due to errors, the District’s accounting records submitted to the Oklahoma Cost Accounting System for expenses in the federal project were overstated. Encumbrances were left open in accounts payable that were unused. Criteria: Public schools must follow the Oklahoma Cost Accounting System which ensures legal compliance by recording and summarizing financial transactions. Part of the coding ensures that federal expenditures are coded as such and reported to the Oklahoma State Department of Education which allows for tracking of federal expenditures. Cause: The District’s internal control procedure of reviewing the accounting records for completeness and accuracy by accounting personnel and management that were to provide effective oversight of the District’s financial reporting failed to detect proper reporting of federal expenditures in the accounting records. Effect: The issue resulted in incorrect reporting of expenditures submitted to the Oklahoma State Department of Education. Due to the error, the Districts expenses for the federal project were overstated. Encumbrances were set up in the amount of $153,030.96, but the District only claimed $100,808.10 on the final claim leaving $52,222.86 overstated. Therefore, the expenditures reported on the Schedule of Expenditures of Federal Awards will not match the numbers submitted to the Oklahoma State Department of Education. Recommendation: The District’s accounting personnel and management must continually monitor and review all expenses to verify coding. Controls should be put in place to compare federal program records with what is reported in the Oklahoma Cost Accounting System. Encumbrances should be reviewed at year end and closed if not accurate. Encumbrances should only be set up in a federal project code if they are completed and paid by September 30th and claimed in the federal program. Internal controls should be in place to provide effective oversight of the District’s financial reporting by accounting personnel and those charged with governance. District’s Response: The District will review all federal program coding and year end encumbrances. Questioned Costs: $ 0
Finding 2024-004
Material Weaknesses: 2024-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 ARP ESSER III Assistance Listing: 84.425U Grant Period: Year Ending June 30, 2024 Condition: Construction projects paid with federal monies did not meet the compliance requirements of the Davis-Bacon Act. Criteria: The Davis-Bacon Act requires that nonfederal entities shall meet certain requirements for the construction, alteration or repair of public buildings or public works in excess of $2,000.00. Any contract entered into must include the locally prevailing wage to be paid to workers including fringe benefits. The contractor is obliged to pay at least the prevailing wage listed in the contract. Contractors are required to pay covered workers weekly and submit weekly certified payrolls to the contracting entity. They are also required to post the applicable Davis-Bacon wage determination along with the Davis-Bacon poster at the job site. Cause: The District did not follow the requirements of the Davis-Bacon Act when expending federal monies. Effect: The District could be liable for paying any additional wages if the contractor did not pay prevailing wage rates to laborers working on the project, or the expenditures could be disallowed for the expenditures that were subject to the Davis-Bacon Act. Recommendation: We recommend the District develop internal controls to meet the requirements of the Davis-Bacon Act that ensure any time federal awards are used on construction that compliance with contracts, including inserting the prevailing wage clauses and ensuring that federal wage rates and fringes are met by an effective monitoring process which includes collecting and reviewing weekly certified payroll reports from the contractor or subcontractor. Also, ensuring that all items are posted at the work site to ensure compliance. District’s Response: The District will develop internal controls to ensure that in the future if federal awards are expended on construction that all requirements of the Davis-Bacon Act will be met. Questioned Costs: $ 0
Finding 2024-003
Material Weaknesses: 2024-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 ARP ESSER III Assistance Listing: 84.425U Grant Period: Year Ending June 30, 2024 Condition: Federal expenditures were not properly accounted for in the Oklahoma Cost Accounting System in the federal project. Due to errors, the District’s accounting records submitted to the Oklahoma Cost Accounting System for expenses in the federal project were overstated. Encumbrances were left open in accounts payable that were unused. Criteria: Public schools must follow the Oklahoma Cost Accounting System which ensures legal compliance by recording and summarizing financial transactions. Part of the coding ensures that federal expenditures are coded as such and reported to the Oklahoma State Department of Education which allows for tracking of federal expenditures. Cause: The District’s internal control procedure of reviewing the accounting records for completeness and accuracy by accounting personnel and management that were to provide effective oversight of the District’s financial reporting failed to detect proper reporting of federal expenditures in the accounting records. Effect: The issue resulted in incorrect reporting of expenditures submitted to the Oklahoma State Department of Education. Due to the error, the Districts expenses for the federal project were overstated. Encumbrances were set up in the amount of $153,030.96, but the District only claimed $100,808.10 on the final claim leaving $52,222.86 overstated. Therefore, the expenditures reported on the Schedule of Expenditures of Federal Awards will not match the numbers submitted to the Oklahoma State Department of Education. Recommendation: The District’s accounting personnel and management must continually monitor and review all expenses to verify coding. Controls should be put in place to compare federal program records with what is reported in the Oklahoma Cost Accounting System. Encumbrances should be reviewed at year end and closed if not accurate. Encumbrances should only be set up in a federal project code if they are completed and paid by September 30th and claimed in the federal program. Internal controls should be in place to provide effective oversight of the District’s financial reporting by accounting personnel and those charged with governance. District’s Response: The District will review all federal program coding and year end encumbrances. Questioned Costs: $ 0
Finding 2024-004
Material Weaknesses: 2024-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 ARP ESSER III Assistance Listing: 84.425U Grant Period: Year Ending June 30, 2024 Condition: Construction projects paid with federal monies did not meet the compliance requirements of the Davis-Bacon Act. Criteria: The Davis-Bacon Act requires that nonfederal entities shall meet certain requirements for the construction, alteration or repair of public buildings or public works in excess of $2,000.00. Any contract entered into must include the locally prevailing wage to be paid to workers including fringe benefits. The contractor is obliged to pay at least the prevailing wage listed in the contract. Contractors are required to pay covered workers weekly and submit weekly certified payrolls to the contracting entity. They are also required to post the applicable Davis-Bacon wage determination along with the Davis-Bacon poster at the job site. Cause: The District did not follow the requirements of the Davis-Bacon Act when expending federal monies. Effect: The District could be liable for paying any additional wages if the contractor did not pay prevailing wage rates to laborers working on the project, or the expenditures could be disallowed for the expenditures that were subject to the Davis-Bacon Act. Recommendation: We recommend the District develop internal controls to meet the requirements of the Davis-Bacon Act that ensure any time federal awards are used on construction that compliance with contracts, including inserting the prevailing wage clauses and ensuring that federal wage rates and fringes are met by an effective monitoring process which includes collecting and reviewing weekly certified payroll reports from the contractor or subcontractor. Also, ensuring that all items are posted at the work site to ensure compliance. District’s Response: The District will develop internal controls to ensure that in the future if federal awards are expended on construction that all requirements of the Davis-Bacon Act will be met. Questioned Costs: $ 0