Audit 358831

FY End
2024-06-30
Total Expended
$1.58M
Findings
8
Programs
10
Year: 2024 Accepted: 2025-06-13
Auditor: Adamsbrown LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
564768 2024-004 Material Weakness - L
564769 2024-005 Significant Deficiency - AB
564770 2024-005 Significant Deficiency - AB
564771 2024-005 Significant Deficiency - AB
1141210 2024-004 Material Weakness - L
1141211 2024-005 Significant Deficiency - AB
1141212 2024-005 Significant Deficiency - AB
1141213 2024-005 Significant Deficiency - AB

Contacts

Name Title Type
RFLECW8ENUV3 Patrick Crowdis Auditee
6206534134 Danielle Hollingshead Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are presented on the basis of accounting that demonstrates compliance with the cash basis and budget laws of the State of Kansas, which is a comprehensive basis of accounting other than generally accepted accounting principles. Such expenditures are recognized following the cost principles contained in the Uniform Guidance cost principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Unified School District No. 431 Hoisington, Kansas 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 District, it is not intended to and does not present the financial position of the District.
Title: Other Expenditures Accounting Policies: Expenditures reported on the schedule are presented on the basis of accounting that demonstrates compliance with the cash basis and budget laws of the State of Kansas, which is a comprehensive basis of accounting other than generally accepted accounting principles. Such expenditures are recognized following the cost principles contained in the Uniform Guidance cost principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not receive any federal awards in the form of noncash assistance, insurance, loans, or loan guarantees, and incurred no expenditures in relation thereof for the year ended June 30, 2024.

Finding Details

MATERIAL WEAKNESS 2024-004 Education Stabilization Fund – Reporting Criteria or specific requirement Participants in the Education Stabilization Fund program are required to submit periodic reports to the awarding agency. Condition The quarterly reports had incorrect expenditures reported for the ESSER III award. Context During testing, it was determined that expenditures reported for the ESSER III award were not correctly reported and in line with the reporting method required by the awarding agency. Cause Due to issues related to the timing of program funding draw downs, District staff struggled to report the information on the basis that the awarding agency required of them. Effect An incorrect amount was reported for the ESSER III award on the District’s quarterly reports. Recommendation Reporting methods required by the awarding agency should be well understood, and an individual other than the preparer should review all reports prior to their submission. Views of responsible officials and planned corrective actions See Corrective Action Plan.
SIGNIFICANT DEFICIENCY 2024-005 Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Expenditures should only be incurred for the program if they have been deemed to meet program allowability requirements, which includes ensuring that no improper payments are made, that payroll charges are supported by required documentation, and that the cost was necessary and reasonable for the performance of the federal award. Condition Of the 51 transactions tested, 9 were found to not meet elements of allowability. Context For 7 of the transactions, charges to the federal awards for salaries and wages were not accurately based on records that reflected the work performed. This improper payment also resulted in incorrect directly associated costs (payroll taxes) being charged to the federal award. The eighth transaction involved a payroll charge that did not have the required supporting documentation prepared. For the final transaction, an order was placed for numerous items that were all charged to the federal award, but two of those items were found to not meet the allowability standards. Cause Payments made to staff for summer school wages were calculated based upon planned work hours and scheduled days, and they were not adjusted when the actual hours worked differed from those calculations. Additionally, two timesheets were not summed correctly when determining the hours worked for the afterschool program. Lastly, expenditures were not carefully reviewed to ensure that all expenses were allowable and that all necessary supporting documentation had been prepared and kept on file. Effect Total questioned costs amounted to $1,979, and, when compared to the overall population, total likely questioned costs were calculated as $9,029. Recommendation The District should carefully review all charges to the federal award in order to ensure that sufficient supporting documentation has been obtained, that correct payments are being made, and that no unreasonable or unnecessary charges exist. Views of responsible officials and planned corrective actions See Corrective Action Plan.
SIGNIFICANT DEFICIENCY 2024-005 Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Expenditures should only be incurred for the program if they have been deemed to meet program allowability requirements, which includes ensuring that no improper payments are made, that payroll charges are supported by required documentation, and that the cost was necessary and reasonable for the performance of the federal award. Condition Of the 51 transactions tested, 9 were found to not meet elements of allowability. Context For 7 of the transactions, charges to the federal awards for salaries and wages were not accurately based on records that reflected the work performed. This improper payment also resulted in incorrect directly associated costs (payroll taxes) being charged to the federal award. The eighth transaction involved a payroll charge that did not have the required supporting documentation prepared. For the final transaction, an order was placed for numerous items that were all charged to the federal award, but two of those items were found to not meet the allowability standards. Cause Payments made to staff for summer school wages were calculated based upon planned work hours and scheduled days, and they were not adjusted when the actual hours worked differed from those calculations. Additionally, two timesheets were not summed correctly when determining the hours worked for the afterschool program. Lastly, expenditures were not carefully reviewed to ensure that all expenses were allowable and that all necessary supporting documentation had been prepared and kept on file. Effect Total questioned costs amounted to $1,979, and, when compared to the overall population, total likely questioned costs were calculated as $9,029. Recommendation The District should carefully review all charges to the federal award in order to ensure that sufficient supporting documentation has been obtained, that correct payments are being made, and that no unreasonable or unnecessary charges exist. Views of responsible officials and planned corrective actions See Corrective Action Plan.
SIGNIFICANT DEFICIENCY 2024-005 Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Expenditures should only be incurred for the program if they have been deemed to meet program allowability requirements, which includes ensuring that no improper payments are made, that payroll charges are supported by required documentation, and that the cost was necessary and reasonable for the performance of the federal award. Condition Of the 51 transactions tested, 9 were found to not meet elements of allowability. Context For 7 of the transactions, charges to the federal awards for salaries and wages were not accurately based on records that reflected the work performed. This improper payment also resulted in incorrect directly associated costs (payroll taxes) being charged to the federal award. The eighth transaction involved a payroll charge that did not have the required supporting documentation prepared. For the final transaction, an order was placed for numerous items that were all charged to the federal award, but two of those items were found to not meet the allowability standards. Cause Payments made to staff for summer school wages were calculated based upon planned work hours and scheduled days, and they were not adjusted when the actual hours worked differed from those calculations. Additionally, two timesheets were not summed correctly when determining the hours worked for the afterschool program. Lastly, expenditures were not carefully reviewed to ensure that all expenses were allowable and that all necessary supporting documentation had been prepared and kept on file. Effect Total questioned costs amounted to $1,979, and, when compared to the overall population, total likely questioned costs were calculated as $9,029. Recommendation The District should carefully review all charges to the federal award in order to ensure that sufficient supporting documentation has been obtained, that correct payments are being made, and that no unreasonable or unnecessary charges exist. Views of responsible officials and planned corrective actions See Corrective Action Plan.
MATERIAL WEAKNESS 2024-004 Education Stabilization Fund – Reporting Criteria or specific requirement Participants in the Education Stabilization Fund program are required to submit periodic reports to the awarding agency. Condition The quarterly reports had incorrect expenditures reported for the ESSER III award. Context During testing, it was determined that expenditures reported for the ESSER III award were not correctly reported and in line with the reporting method required by the awarding agency. Cause Due to issues related to the timing of program funding draw downs, District staff struggled to report the information on the basis that the awarding agency required of them. Effect An incorrect amount was reported for the ESSER III award on the District’s quarterly reports. Recommendation Reporting methods required by the awarding agency should be well understood, and an individual other than the preparer should review all reports prior to their submission. Views of responsible officials and planned corrective actions See Corrective Action Plan.
SIGNIFICANT DEFICIENCY 2024-005 Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Expenditures should only be incurred for the program if they have been deemed to meet program allowability requirements, which includes ensuring that no improper payments are made, that payroll charges are supported by required documentation, and that the cost was necessary and reasonable for the performance of the federal award. Condition Of the 51 transactions tested, 9 were found to not meet elements of allowability. Context For 7 of the transactions, charges to the federal awards for salaries and wages were not accurately based on records that reflected the work performed. This improper payment also resulted in incorrect directly associated costs (payroll taxes) being charged to the federal award. The eighth transaction involved a payroll charge that did not have the required supporting documentation prepared. For the final transaction, an order was placed for numerous items that were all charged to the federal award, but two of those items were found to not meet the allowability standards. Cause Payments made to staff for summer school wages were calculated based upon planned work hours and scheduled days, and they were not adjusted when the actual hours worked differed from those calculations. Additionally, two timesheets were not summed correctly when determining the hours worked for the afterschool program. Lastly, expenditures were not carefully reviewed to ensure that all expenses were allowable and that all necessary supporting documentation had been prepared and kept on file. Effect Total questioned costs amounted to $1,979, and, when compared to the overall population, total likely questioned costs were calculated as $9,029. Recommendation The District should carefully review all charges to the federal award in order to ensure that sufficient supporting documentation has been obtained, that correct payments are being made, and that no unreasonable or unnecessary charges exist. Views of responsible officials and planned corrective actions See Corrective Action Plan.
SIGNIFICANT DEFICIENCY 2024-005 Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Expenditures should only be incurred for the program if they have been deemed to meet program allowability requirements, which includes ensuring that no improper payments are made, that payroll charges are supported by required documentation, and that the cost was necessary and reasonable for the performance of the federal award. Condition Of the 51 transactions tested, 9 were found to not meet elements of allowability. Context For 7 of the transactions, charges to the federal awards for salaries and wages were not accurately based on records that reflected the work performed. This improper payment also resulted in incorrect directly associated costs (payroll taxes) being charged to the federal award. The eighth transaction involved a payroll charge that did not have the required supporting documentation prepared. For the final transaction, an order was placed for numerous items that were all charged to the federal award, but two of those items were found to not meet the allowability standards. Cause Payments made to staff for summer school wages were calculated based upon planned work hours and scheduled days, and they were not adjusted when the actual hours worked differed from those calculations. Additionally, two timesheets were not summed correctly when determining the hours worked for the afterschool program. Lastly, expenditures were not carefully reviewed to ensure that all expenses were allowable and that all necessary supporting documentation had been prepared and kept on file. Effect Total questioned costs amounted to $1,979, and, when compared to the overall population, total likely questioned costs were calculated as $9,029. Recommendation The District should carefully review all charges to the federal award in order to ensure that sufficient supporting documentation has been obtained, that correct payments are being made, and that no unreasonable or unnecessary charges exist. Views of responsible officials and planned corrective actions See Corrective Action Plan.
SIGNIFICANT DEFICIENCY 2024-005 Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Expenditures should only be incurred for the program if they have been deemed to meet program allowability requirements, which includes ensuring that no improper payments are made, that payroll charges are supported by required documentation, and that the cost was necessary and reasonable for the performance of the federal award. Condition Of the 51 transactions tested, 9 were found to not meet elements of allowability. Context For 7 of the transactions, charges to the federal awards for salaries and wages were not accurately based on records that reflected the work performed. This improper payment also resulted in incorrect directly associated costs (payroll taxes) being charged to the federal award. The eighth transaction involved a payroll charge that did not have the required supporting documentation prepared. For the final transaction, an order was placed for numerous items that were all charged to the federal award, but two of those items were found to not meet the allowability standards. Cause Payments made to staff for summer school wages were calculated based upon planned work hours and scheduled days, and they were not adjusted when the actual hours worked differed from those calculations. Additionally, two timesheets were not summed correctly when determining the hours worked for the afterschool program. Lastly, expenditures were not carefully reviewed to ensure that all expenses were allowable and that all necessary supporting documentation had been prepared and kept on file. Effect Total questioned costs amounted to $1,979, and, when compared to the overall population, total likely questioned costs were calculated as $9,029. Recommendation The District should carefully review all charges to the federal award in order to ensure that sufficient supporting documentation has been obtained, that correct payments are being made, and that no unreasonable or unnecessary charges exist. Views of responsible officials and planned corrective actions See Corrective Action Plan.