FAC Explorer

Audit 351601

FY End
2024-06-30
Total Expended
$7.85M
Findings
6
Programs
12
Organization: Western Line School District (MS)
Year: 2024 Accepted: 2025-03-31
Auditor: Brown CPA PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547302 2024-003 Significant Deficiency - B
547303 2024-003 Significant Deficiency - B
547304 2024-003 Significant Deficiency - B
1123744 2024-003 Significant Deficiency - B
1123745 2024-003 Significant Deficiency - B
1123746 2024-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $1.36M - 0
10.555 National School Lunch Program $1.22M Yes 0
10.553 School Breakfast Program $365,880 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $124,467 - 0
16.710 Public Safety Partnership and Community Policing Grants $117,278 - 0
84.424 Student Support and Academic Enrichment Program $78,109 - 0
84.358 Rural Education $59,559 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $49,643 - 0
84.027 Special Education Grants to States $33,623 - 0
84.425 Education Stabilization Fund $19,992 Yes 1
84.173 Special Education Preschool Grants $2,440 - 0
96.001 Social Security Disability Insurance $420 - 0

Contacts

Name Title Type
JCATHV3DMK34 Glenda Ketchum Auditee
6623357186 Clint Brown Auditor
No contacts on file

Notes to SEFA

Title: Other Items Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Western Line 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). Because the Schedule presents only a selected portion of the operations of the Western Line School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Western Line School District. (2)Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the same basis of accounting and the same significant accounting policies, as applicable, as those used for the financial statements; however, the expenditures include transfers out. 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. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Western Line School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Donated commodities are included in the National School Lunch Program. E-rate funds have not been included on this schedule due to the fact the FCC considers the support to be in the form of providing a discount to the schools and libraries and does not consider the assistance to be direct financial support.

Finding Details

Finding 2024-003
Payroll testing and internal controls. Programs: COVID-19 – Elementary & Secondary School Emergency Relief I, II, and Pre-K (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U COVID-19 – Elementary & Secondary School Emergency Relief Homeless and Youth ARP (ESSER) ALN #84.425W Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, which will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: We noted the following exceptions while testing payroll expenditures: 1. Three (3) employees in the sample were not properly approved by the board. The contracts did not agree with the actual amount paid. The total amount paid to each employee could not be traced to the minutes or salary scales for FY24. 2. One (1) employee could not provide a Personnel Activity Report (PAR) to show how time and effort is being allocated between district and federal funds. Context: Internal control procedures were tested for payroll in the major federal funds and other nonmajor federal funds if included in the sample. Cause: The district did not have proper controls in place to ensure all payments to employees are being properly board approved on an annual basis and can be traced to the board minutes. Also, the district needs to ensure employees meet compliance requirements with Personnel Activity Reports. Effect: Not being able to verify an employee’s pay could result in underpaying or overpaying an employee according to the federal application or budgeted amount approved by the board. Incomplete or missing PAR reports could result in improper use of federal funds. Questioned Costs: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved each year with the amount paid traceable to the board minutes. Controls should also be implemented to ensure all applicable employees paid with federal funds complete the Personnel Activity Report requirements. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 86.
Finding 2024-003
Payroll testing and internal controls. Programs: COVID-19 – Elementary & Secondary School Emergency Relief I, II, and Pre-K (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U COVID-19 – Elementary & Secondary School Emergency Relief Homeless and Youth ARP (ESSER) ALN #84.425W Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, which will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: We noted the following exceptions while testing payroll expenditures: 1. Three (3) employees in the sample were not properly approved by the board. The contracts did not agree with the actual amount paid. The total amount paid to each employee could not be traced to the minutes or salary scales for FY24. 2. One (1) employee could not provide a Personnel Activity Report (PAR) to show how time and effort is being allocated between district and federal funds. Context: Internal control procedures were tested for payroll in the major federal funds and other nonmajor federal funds if included in the sample. Cause: The district did not have proper controls in place to ensure all payments to employees are being properly board approved on an annual basis and can be traced to the board minutes. Also, the district needs to ensure employees meet compliance requirements with Personnel Activity Reports. Effect: Not being able to verify an employee’s pay could result in underpaying or overpaying an employee according to the federal application or budgeted amount approved by the board. Incomplete or missing PAR reports could result in improper use of federal funds. Questioned Costs: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved each year with the amount paid traceable to the board minutes. Controls should also be implemented to ensure all applicable employees paid with federal funds complete the Personnel Activity Report requirements. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 86.
Finding 2024-003
Payroll testing and internal controls. Programs: COVID-19 – Elementary & Secondary School Emergency Relief I, II, and Pre-K (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U COVID-19 – Elementary & Secondary School Emergency Relief Homeless and Youth ARP (ESSER) ALN #84.425W Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, which will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: We noted the following exceptions while testing payroll expenditures: 1. Three (3) employees in the sample were not properly approved by the board. The contracts did not agree with the actual amount paid. The total amount paid to each employee could not be traced to the minutes or salary scales for FY24. 2. One (1) employee could not provide a Personnel Activity Report (PAR) to show how time and effort is being allocated between district and federal funds. Context: Internal control procedures were tested for payroll in the major federal funds and other nonmajor federal funds if included in the sample. Cause: The district did not have proper controls in place to ensure all payments to employees are being properly board approved on an annual basis and can be traced to the board minutes. Also, the district needs to ensure employees meet compliance requirements with Personnel Activity Reports. Effect: Not being able to verify an employee’s pay could result in underpaying or overpaying an employee according to the federal application or budgeted amount approved by the board. Incomplete or missing PAR reports could result in improper use of federal funds. Questioned Costs: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved each year with the amount paid traceable to the board minutes. Controls should also be implemented to ensure all applicable employees paid with federal funds complete the Personnel Activity Report requirements. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 86.
Finding 2024-003
Payroll testing and internal controls. Programs: COVID-19 – Elementary & Secondary School Emergency Relief I, II, and Pre-K (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U COVID-19 – Elementary & Secondary School Emergency Relief Homeless and Youth ARP (ESSER) ALN #84.425W Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, which will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: We noted the following exceptions while testing payroll expenditures: 1. Three (3) employees in the sample were not properly approved by the board. The contracts did not agree with the actual amount paid. The total amount paid to each employee could not be traced to the minutes or salary scales for FY24. 2. One (1) employee could not provide a Personnel Activity Report (PAR) to show how time and effort is being allocated between district and federal funds. Context: Internal control procedures were tested for payroll in the major federal funds and other nonmajor federal funds if included in the sample. Cause: The district did not have proper controls in place to ensure all payments to employees are being properly board approved on an annual basis and can be traced to the board minutes. Also, the district needs to ensure employees meet compliance requirements with Personnel Activity Reports. Effect: Not being able to verify an employee’s pay could result in underpaying or overpaying an employee according to the federal application or budgeted amount approved by the board. Incomplete or missing PAR reports could result in improper use of federal funds. Questioned Costs: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved each year with the amount paid traceable to the board minutes. Controls should also be implemented to ensure all applicable employees paid with federal funds complete the Personnel Activity Report requirements. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 86.
Finding 2024-003
Payroll testing and internal controls. Programs: COVID-19 – Elementary & Secondary School Emergency Relief I, II, and Pre-K (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U COVID-19 – Elementary & Secondary School Emergency Relief Homeless and Youth ARP (ESSER) ALN #84.425W Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, which will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: We noted the following exceptions while testing payroll expenditures: 1. Three (3) employees in the sample were not properly approved by the board. The contracts did not agree with the actual amount paid. The total amount paid to each employee could not be traced to the minutes or salary scales for FY24. 2. One (1) employee could not provide a Personnel Activity Report (PAR) to show how time and effort is being allocated between district and federal funds. Context: Internal control procedures were tested for payroll in the major federal funds and other nonmajor federal funds if included in the sample. Cause: The district did not have proper controls in place to ensure all payments to employees are being properly board approved on an annual basis and can be traced to the board minutes. Also, the district needs to ensure employees meet compliance requirements with Personnel Activity Reports. Effect: Not being able to verify an employee’s pay could result in underpaying or overpaying an employee according to the federal application or budgeted amount approved by the board. Incomplete or missing PAR reports could result in improper use of federal funds. Questioned Costs: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved each year with the amount paid traceable to the board minutes. Controls should also be implemented to ensure all applicable employees paid with federal funds complete the Personnel Activity Report requirements. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 86.
Finding 2024-003
Payroll testing and internal controls. Programs: COVID-19 – Elementary & Secondary School Emergency Relief I, II, and Pre-K (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U COVID-19 – Elementary & Secondary School Emergency Relief Homeless and Youth ARP (ESSER) ALN #84.425W Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, which will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: We noted the following exceptions while testing payroll expenditures: 1. Three (3) employees in the sample were not properly approved by the board. The contracts did not agree with the actual amount paid. The total amount paid to each employee could not be traced to the minutes or salary scales for FY24. 2. One (1) employee could not provide a Personnel Activity Report (PAR) to show how time and effort is being allocated between district and federal funds. Context: Internal control procedures were tested for payroll in the major federal funds and other nonmajor federal funds if included in the sample. Cause: The district did not have proper controls in place to ensure all payments to employees are being properly board approved on an annual basis and can be traced to the board minutes. Also, the district needs to ensure employees meet compliance requirements with Personnel Activity Reports. Effect: Not being able to verify an employee’s pay could result in underpaying or overpaying an employee according to the federal application or budgeted amount approved by the board. Incomplete or missing PAR reports could result in improper use of federal funds. Questioned Costs: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved each year with the amount paid traceable to the board minutes. Controls should also be implemented to ensure all applicable employees paid with federal funds complete the Personnel Activity Report requirements. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 86.