FAC Explorer

Audit 352509

FY End
2024-06-30
Total Expended
$909,291
Findings
2
Programs
10
Organization: Townsend School District (MT)
Year: 2024 Accepted: 2025-04-02
Auditor: Denning Downey and Associates Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553828 2024-002 Material Weakness - J
1130270 2024-002 Material Weakness - J

Programs

ALN Program Spent Major Findings
84.287 Twenty-First Century Community Learning Centers $212,500 Yes 1
84.010 Title I Grants to Local Educational Agencies $203,147 Yes 0
10.553 School Breakfast Program $31,921 - 0
10.555 National School Lunch Program $31,161 - 0
84.048 Career and Technical Education -- Basic Grants to States $15,442 - 0
10.559 Summer Food Service Program for Children $10,549 - 0
84.358 Rural Education $9,627 - 0
84.425 Education Stabilization Fund $5,856 - 0
84.027 Special Education Grants to States $4,443 - 0
10.558 Child and Adult Care Food Program $3,766 - 0

Contacts

Name Title Type
K7YPK5BJR6T6 Brad Racht Auditee
4064413471 Robert Denning Auditor
No contacts on file

Notes to SEFA

Title: Value of Federal Awards Expended in the form of Noncash Assistance Accounting Policies: Basis of Presentation and Significant Accounting Policies The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Townsend Public School, Broadwater County, Montana. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Townsend Public School, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Townsend Public School. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of the basic financial statements. 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. De Minimis Rate Used: N Rate Explanation: The Townsend Public School has elected not to use the 10 percent de Minimis indirect cost rate as provided in Sec. 200.414 Indirect Costs under Uniform Guidance. Food Commodities value equals the fair value at the time of the receipt $31,161.

Finding Details

Finding 2024-002
2024-002 Program Income CFDA Title: Title IV-B Twenty-First Community Learning Centers CFDA Number: 84.287 Federal Award Number: S287C230026 2024 Federal Agency: Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the program income compliance requirement for the Twenty-First Century Community Learning Center Grant. Criteria: As part of the federal compliance testing for the Twenty-First Century Community Learning Centers Grant, we tested to determine if the District charged fees associated with the program. Context: In the 2024 Compliance Supplement, under Part 4 Department of Education, page 187 for Program Income related to the Twenty-First Century Community Learning Center grant, it states that a recipient or subrecipient that earns program income must deduct the amount of program income from the amount of the Federal award unless it has received prior written approval from ED to add the amount of program income to the amount of the Federal award. If the recipient or subrecipient receives prior written approval to add the amount of program income to the Federal award, the program income must be used for the purposes and under the conditions of the Federal award. Effect: The District was not incompliance with the program income requirement as it charged $11,995 in fees under this program without approval and did not deduct that amount from the amount requested for reimbursement under the grant. They were awarded $212,500 and were given the full $212,500 under requests for reimbursement. Cause: The District was not aware of the requirement. Recommendation: We recommend that the District ensure that either it gets preapproval from the granting agency prior to charging fees, or they deduct the amount charged for the federal grant and request reimbursement for that much less.
Finding 2024-002
2024-002 Program Income CFDA Title: Title IV-B Twenty-First Community Learning Centers CFDA Number: 84.287 Federal Award Number: S287C230026 2024 Federal Agency: Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the program income compliance requirement for the Twenty-First Century Community Learning Center Grant. Criteria: As part of the federal compliance testing for the Twenty-First Century Community Learning Centers Grant, we tested to determine if the District charged fees associated with the program. Context: In the 2024 Compliance Supplement, under Part 4 Department of Education, page 187 for Program Income related to the Twenty-First Century Community Learning Center grant, it states that a recipient or subrecipient that earns program income must deduct the amount of program income from the amount of the Federal award unless it has received prior written approval from ED to add the amount of program income to the amount of the Federal award. If the recipient or subrecipient receives prior written approval to add the amount of program income to the Federal award, the program income must be used for the purposes and under the conditions of the Federal award. Effect: The District was not incompliance with the program income requirement as it charged $11,995 in fees under this program without approval and did not deduct that amount from the amount requested for reimbursement under the grant. They were awarded $212,500 and were given the full $212,500 under requests for reimbursement. Cause: The District was not aware of the requirement. Recommendation: We recommend that the District ensure that either it gets preapproval from the granting agency prior to charging fees, or they deduct the amount charged for the federal grant and request reimbursement for that much less.