FAC Explorer

Audit 351351

FY End
2024-06-30
Total Expended
$7.63M
Findings
14
Programs
9
Organization: Farrell Area School District (PA)
Year: 2024 Accepted: 2025-03-31
Auditor: Hill Barth & King LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
546967 2024-005 Material Weakness - ABFGLMN
546968 2024-005 Material Weakness - ABFGLMN
546969 2024-005 Material Weakness - ABEILN
546970 2024-005 Material Weakness - ABEILN
546971 2024-005 Material Weakness - ABEILN
546972 2024-006 Material Weakness - AB
546973 2024-006 Material Weakness - AB
1123409 2024-005 Material Weakness - ABFGLMN
1123410 2024-005 Material Weakness - ABFGLMN
1123411 2024-005 Material Weakness - ABEILN
1123412 2024-005 Material Weakness - ABEILN
1123413 2024-005 Material Weakness - ABEILN
1123414 2024-006 Material Weakness - AB
1123415 2024-006 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $5.25M Yes 2
93.556 Marylee Allen Promoting Safe and Stable Families Program $577,848 - 0
10.555 National School Lunch Program $505,782 Yes 1
10.553 School Breakfast Program $226,972 Yes 1
84.027 Special Education Grants to States $205,529 - 0
84.287 Twenty-First Century Community Learning Centers $84,655 - 0
10.558 Child and Adult Care Food Program $33,069 - 0
10.559 Summer Food Service Program for Children $23,836 Yes 1
10.649 Pandemic Ebt Administrative Costs $653 - 0

Contacts

Name Title Type
LWFFNJ2C3FT9 Frank Antuono Auditee
7245091305 Daniel Sefick 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 accrual 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a selected portion of the operations of the District, it is not intended to, and does not present the net position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the Farrell 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).
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a selected portion of the operations of the District, it is not intended to, and does not present the net position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a selected portion of the operations of the District, it is not intended to, and does not present the net position, changes in net position or cash flows of the District.
Title: NOTE C - FOOD DISTRIBUTION 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a selected portion of the operations of the District, it is not intended to, and does not present the net position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Nonmonetary assistance is reported in the schedule of expenditures of federal awards at the net realizable value of the commodities received and disbursed.
Title: NOTE D - INDIRECT COST RATE 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a selected portion of the operations of the District, it is not intended to, and does not present the net position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-006
Finding 2024-006 – Oversight Processes and Internal Controls over Completeness and Existence of Expenditures of Federal Awards Federal Agency: United States Department of Education Federal Program Name: COVID-19 Education Stabilization Fund Federal Award Identification Number and Year: AL No. 84.425 D and 84.425 U Pass-Through Agency: Pennsylvania Department of Education Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Management is responsible for maintaining adequate processes and internal controls over the review, approval and recording of all federal expenditures into the accounting system. Condition: The District maintains several internally prepared spreadsheets to track accounting records such as expenditures of federal awards for various funds. During audit procedures, it was noted that the internally prepared tracking spreadsheet of federal expenditures was altered from prior year. As a result, during testing procedures of the Activities and Costs Allowed or Unallowed, We noted instances where total invoice charges did not agree to the population. Questioned Costs: None Cause: Turnover in the Business Office has made it difficult to maintain consistent reconciliations and centralized review processes. Adjustments were ultimately identified by the District but not reviewed in an appropriate manner. Effect: As a result, significant adjustments were required to the internally prepared spreadsheets to accurately reflect the activity and balances at year end. The alteration of the data, including prior year data, compromised the completeness of the file. A lack of consistent and timely reconciliation processes, specifically related to expenditures of federal awards, and proper review allowed for errors in the accounting to go unnoticed, resulting in inaccurate financial reporting. Repeat Finding: No Recommendations: We recommend that the District establishes a centralized review process for all expenditures of federal awards. This process should allow for at least one level of review to be done by an experienced person other than the one who prepared the schedule. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-006
Finding 2024-006 – Oversight Processes and Internal Controls over Completeness and Existence of Expenditures of Federal Awards Federal Agency: United States Department of Education Federal Program Name: COVID-19 Education Stabilization Fund Federal Award Identification Number and Year: AL No. 84.425 D and 84.425 U Pass-Through Agency: Pennsylvania Department of Education Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Management is responsible for maintaining adequate processes and internal controls over the review, approval and recording of all federal expenditures into the accounting system. Condition: The District maintains several internally prepared spreadsheets to track accounting records such as expenditures of federal awards for various funds. During audit procedures, it was noted that the internally prepared tracking spreadsheet of federal expenditures was altered from prior year. As a result, during testing procedures of the Activities and Costs Allowed or Unallowed, We noted instances where total invoice charges did not agree to the population. Questioned Costs: None Cause: Turnover in the Business Office has made it difficult to maintain consistent reconciliations and centralized review processes. Adjustments were ultimately identified by the District but not reviewed in an appropriate manner. Effect: As a result, significant adjustments were required to the internally prepared spreadsheets to accurately reflect the activity and balances at year end. The alteration of the data, including prior year data, compromised the completeness of the file. A lack of consistent and timely reconciliation processes, specifically related to expenditures of federal awards, and proper review allowed for errors in the accounting to go unnoticed, resulting in inaccurate financial reporting. Repeat Finding: No Recommendations: We recommend that the District establishes a centralized review process for all expenditures of federal awards. This process should allow for at least one level of review to be done by an experienced person other than the one who prepared the schedule. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-006
Finding 2024-006 – Oversight Processes and Internal Controls over Completeness and Existence of Expenditures of Federal Awards Federal Agency: United States Department of Education Federal Program Name: COVID-19 Education Stabilization Fund Federal Award Identification Number and Year: AL No. 84.425 D and 84.425 U Pass-Through Agency: Pennsylvania Department of Education Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Management is responsible for maintaining adequate processes and internal controls over the review, approval and recording of all federal expenditures into the accounting system. Condition: The District maintains several internally prepared spreadsheets to track accounting records such as expenditures of federal awards for various funds. During audit procedures, it was noted that the internally prepared tracking spreadsheet of federal expenditures was altered from prior year. As a result, during testing procedures of the Activities and Costs Allowed or Unallowed, We noted instances where total invoice charges did not agree to the population. Questioned Costs: None Cause: Turnover in the Business Office has made it difficult to maintain consistent reconciliations and centralized review processes. Adjustments were ultimately identified by the District but not reviewed in an appropriate manner. Effect: As a result, significant adjustments were required to the internally prepared spreadsheets to accurately reflect the activity and balances at year end. The alteration of the data, including prior year data, compromised the completeness of the file. A lack of consistent and timely reconciliation processes, specifically related to expenditures of federal awards, and proper review allowed for errors in the accounting to go unnoticed, resulting in inaccurate financial reporting. Repeat Finding: No Recommendations: We recommend that the District establishes a centralized review process for all expenditures of federal awards. This process should allow for at least one level of review to be done by an experienced person other than the one who prepared the schedule. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-006
Finding 2024-006 – Oversight Processes and Internal Controls over Completeness and Existence of Expenditures of Federal Awards Federal Agency: United States Department of Education Federal Program Name: COVID-19 Education Stabilization Fund Federal Award Identification Number and Year: AL No. 84.425 D and 84.425 U Pass-Through Agency: Pennsylvania Department of Education Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Management is responsible for maintaining adequate processes and internal controls over the review, approval and recording of all federal expenditures into the accounting system. Condition: The District maintains several internally prepared spreadsheets to track accounting records such as expenditures of federal awards for various funds. During audit procedures, it was noted that the internally prepared tracking spreadsheet of federal expenditures was altered from prior year. As a result, during testing procedures of the Activities and Costs Allowed or Unallowed, We noted instances where total invoice charges did not agree to the population. Questioned Costs: None Cause: Turnover in the Business Office has made it difficult to maintain consistent reconciliations and centralized review processes. Adjustments were ultimately identified by the District but not reviewed in an appropriate manner. Effect: As a result, significant adjustments were required to the internally prepared spreadsheets to accurately reflect the activity and balances at year end. The alteration of the data, including prior year data, compromised the completeness of the file. A lack of consistent and timely reconciliation processes, specifically related to expenditures of federal awards, and proper review allowed for errors in the accounting to go unnoticed, resulting in inaccurate financial reporting. Repeat Finding: No Recommendations: We recommend that the District establishes a centralized review process for all expenditures of federal awards. This process should allow for at least one level of review to be done by an experienced person other than the one who prepared the schedule. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.