FAC Explorer

Audit 358066

FY End
2024-12-31
Total Expended
$829,335
Findings
20
Programs
1
Organization: School District 12 Education Foundation Dba Five Star Education Foundation (CO)
Year: 2024 Accepted: 2025-06-04
Auditor: Ryan Gunsauls and O'Donnell LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
563849 2024-001 Significant Deficiency - L
563850 2024-001 Significant Deficiency - L
563851 2024-001 Significant Deficiency - L
563852 2024-001 Significant Deficiency - L
563853 2024-001 Significant Deficiency - L
563854 2024-002 Significant Deficiency - P
563855 2024-002 Significant Deficiency - P
563856 2024-002 Significant Deficiency - P
563857 2024-002 Significant Deficiency - P
563858 2024-002 Significant Deficiency - P
1140291 2024-001 Significant Deficiency - L
1140292 2024-001 Significant Deficiency - L
1140293 2024-001 Significant Deficiency - L
1140294 2024-001 Significant Deficiency - L
1140295 2024-001 Significant Deficiency - L
1140296 2024-002 Significant Deficiency - P
1140297 2024-002 Significant Deficiency - P
1140298 2024-002 Significant Deficiency - P
1140299 2024-002 Significant Deficiency - P
1140300 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,097 Yes 2

Contacts

Name Title Type
HWK9HP9JZXH7 Shannon Hancock Auditee
7209724342 Lewis Malloy Auditor
No contacts on file

Notes to SEFA

Title: 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, where in certain types of expenditures are not allowable or limited to reimbursement. The School District 12 Education Foundation (dba Five Star Education Foundation) has elected to not use the 10% de minimis cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect Costs. De Minimis Rate Used: N Rate Explanation: The School District 12 Education Foundation (dba Five Star Education Foundation) has elected to not use the 10% de minimis cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect Costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the School District 12 Education Foundation (dba Five Star Education Foundation) and is presented on the accrual basis of accounting. The information in the 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 School District 12 Education Foundation (dba Five Star Education Foundation), it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School District 12 Education Foundation (dba Five Star Education Foundation).
Title: 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, where in certain types of expenditures are not allowable or limited to reimbursement. The School District 12 Education Foundation (dba Five Star Education Foundation) has elected to not use the 10% de minimis cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect Costs. De Minimis Rate Used: N Rate Explanation: The School District 12 Education Foundation (dba Five Star Education Foundation) has elected to not use the 10% de minimis cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect Costs. 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, where in certain types of expenditures are not allowable or limited to reimbursement. The School District 12 Education Foundation (dba Five Star Education Foundation) has elected to not use the 10% de minimis cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect Costs.

Finding Details

Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-001
2024-001 Late Submission of Reports Compliance Requirement – L. Reporting Federal Agency – Department of the Treasury Federal Program Name – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Agency – Adams County, Colorado Criteria: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. Condition: In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely. Cause: Due to issues with the grantor’s reporting submission site transition and having no data to submit for several quarterly reports, the reports were not submitted timely by School District 12 Education Foundation (dba Five Star Education Foundation). Effect: Reports submitted late may result in denial or delay of the reimbursement payment requested. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Finding 2024-002
2024-002 – Internal Control Over Financial Reporting– Significant Deficiency Criteria: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. Condition: During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Cause: School District 12 Education Foundation (dba Five Star Education Foundation) had not implemented policies or procedures, to the degree necessary, to ensure that all transactions are properly accounted for in accordance with US GAAP. Effect: Lack of operating effectiveness of internal controls over financial reporting resulted in significant adjustments in financial reporting. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review their policies and procedures related to the yearend financial reporting process and the related controls are properly implemented to ensure accrual basis financial reporting can be achieved. View of Responsible Officials: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.