FAC Explorer

Audit 352436

FY End
2024-06-30
Total Expended
$2.36M
Findings
2
Programs
12
Organization: Mifflinburg Area School District (PA)
Year: 2024 Accepted: 2025-04-02
Auditor: Klacik and Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553804 2024-001 Material Weakness - ABEILN
1130246 2024-001 Material Weakness - ABEILN

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $508,458 - 0
10.555 National School Lunch Program $158,672 Yes 0
10.553 School Breakfast Program $140,608 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $74,251 - 0
84.424 Student Support and Academic Enrichment Program $40,134 - 0
93.778 Medical Assistance Program $20,265 - 0
84.027 Special Education Grants to States $19,777 - 0
84.425 Education Stabilization Fund $12,440 Yes 0
84.365 English Language Acquisition State Grants $4,656 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $3,639 - 0
10.649 Pandemic Ebt Administrative Costs $3,256 - 0
84.173 Special Education Preschool Grants $2,970 - 0

Contacts

Name Title Type
WJ35PKSC6EU9 Renee Jilinski Auditee
5709668200 Anthony Gagliardi Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: REPORTING ENTITY Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. Mifflinburg Area School District (the "District") is the reporting entity for financial reporting purposes as defined in Note 1 B to the District's basic financial statements. For purposes of preparing the schedules of expenditures of federal awards, the District's reporting entity is the same that was used for financial reporting.
Title: NOTE 2: BASIS OF ACCOUNTING Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate.
Title: NOTE 3: RISK-BASED AUDIT APPROACH Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. The 2024 threshold for determining Type A and Type B programs is $750,000. The School District had two type A programs, ESSER, which is the CFDA number 84.425, and Child Nutrition, which CFDA numbers are 10.553, 10.555, 10.556 and 10.559. Both with total expenditures of $1,344,721 which covers 56.96% of total expenditures of all federal expenditures.
Title: NOTE 4: MEDICAL ASSISTANCE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the District and is presented using the accrual basis of accounting, which is described in Note 1E to the District's basic financial statements. The District did not use the 10% de minimis indirect cost rate. Access reimbursement received under ALN #93.778, Revenue Code 8810 are classified as fee-for-service revenues and are not recognized as federal awards for the purpose of the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2024-001
Criteria: Under 2 CFR 200.318, non-federal entities are required to maintain documented procurement procedures that align with applicable federal, state, and local laws. Additionally, entities must ensure that all procurements provide full and open competition and take steps to utilize small and minority businesses, women's business enterprises, and labor surplus area firms when possible. Condition: The District's procurement policies do not comply with the federal procurement standards outlined in 2 CFR 200.318 through 200.327. Specifically, the policies lack adequate procedures to ensure full and open competition, and they do not include provisions addressing the use of small, minority-owned, and women-owned business enterprises as required by federal regulations. Cause: The District has not updated its procurement policies to reflect current federal requirements, which were revised under the Uniform Guidance. The lack of training and resources contributed to the oversight. Effect: Noncompliance with federal procurement standards could lead to questioned costs for expenditures under the Child Nutrition Cluster. It also incresaes the risk of noncompetitive practices and missed opportunities to engage small and disadvantaged businesses. Questioned Costs: Unknown. Recommendation: In order to correct the procurement process for Child Nutrition the client should revise the District's procurement policies to fully comply with 2 CFR 200.318 through 200.327, provide training for staff involved in procurement to ensure they understand and implement the updtaed policies, conduct periodic reviews of procurement activities to verify compliance with the revised policies, document efforts to engage small, minority-owned, and women-owned business enterprises in procurement activiites. Prior Year Finding: None. Auditee Response: See attached response.
Finding 2024-001
Criteria: Under 2 CFR 200.318, non-federal entities are required to maintain documented procurement procedures that align with applicable federal, state, and local laws. Additionally, entities must ensure that all procurements provide full and open competition and take steps to utilize small and minority businesses, women's business enterprises, and labor surplus area firms when possible. Condition: The District's procurement policies do not comply with the federal procurement standards outlined in 2 CFR 200.318 through 200.327. Specifically, the policies lack adequate procedures to ensure full and open competition, and they do not include provisions addressing the use of small, minority-owned, and women-owned business enterprises as required by federal regulations. Cause: The District has not updated its procurement policies to reflect current federal requirements, which were revised under the Uniform Guidance. The lack of training and resources contributed to the oversight. Effect: Noncompliance with federal procurement standards could lead to questioned costs for expenditures under the Child Nutrition Cluster. It also incresaes the risk of noncompetitive practices and missed opportunities to engage small and disadvantaged businesses. Questioned Costs: Unknown. Recommendation: In order to correct the procurement process for Child Nutrition the client should revise the District's procurement policies to fully comply with 2 CFR 200.318 through 200.327, provide training for staff involved in procurement to ensure they understand and implement the updtaed policies, conduct periodic reviews of procurement activities to verify compliance with the revised policies, document efforts to engage small, minority-owned, and women-owned business enterprises in procurement activiites. Prior Year Finding: None. Auditee Response: See attached response.