Audit 359322

FY End
2024-06-30
Total Expended
$792,847
Findings
12
Programs
8
Organization: Southern Fulton School District (PA)
Year: 2024 Accepted: 2025-06-20

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
565524 2024-005 Significant Deficiency Yes L
565525 2024-005 Significant Deficiency Yes L
565526 2024-005 Significant Deficiency Yes L
565527 2024-006 Significant Deficiency Yes P
565528 2024-006 Significant Deficiency Yes P
565529 2024-006 Significant Deficiency Yes P
1141966 2024-005 Significant Deficiency Yes L
1141967 2024-005 Significant Deficiency Yes L
1141968 2024-005 Significant Deficiency Yes L
1141969 2024-006 Significant Deficiency Yes P
1141970 2024-006 Significant Deficiency Yes P
1141971 2024-006 Significant Deficiency Yes P

Contacts

Name Title Type
PN2LWP8HVWQ8 Greg Gates, CPA Auditee
7172942203 Romulus Comly 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue is recognized when earned, and expenses are recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal award activity of the 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 District’s operations, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Non-Monetary Assistance 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue is recognized when earned, and expenses are recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NSLP - Value of UDSA Donated Commodities (CFDA #10.555) - The District received commodities from the Pennsylvania Department of Agriculture valued at fair market value.
Title: Prior Year Expenditures 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Revenue is recognized when earned, and expenses are recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. For the year ended June 30, 2024, the District has restated the beginning accrued (deferred) revenue amounts on the Schedule of Expenditures of Federal Awards to accurately reflect expenditures incurred and revenue recognized in the prior year. The total restatement resulted in an increase of $67,903 to the beginning accrued (deferred) revenue amounts and impacted the following programs: Passed through Lancaster-Lebanon Intermediate Unit #13 Special Education Grants to States Assistance Listing Number: 84-027 Receivable (Deferred) Revenue at July 1, 2023 Reported: $0 Total Received in fiscal year ended June 30, 2023 Reported: $0 Expenditures/Revenue Recognized for fiscal year ended June 30, 2023 Reported: $0 Expenditures/Revenue Recognized for fiscal year ended June 30, 2023 Corrected: $67,903 Receivable (Deferred) Revenue at June 30, 2023 Reported: $0 Receivable (Deferred) Revenue at June 30, 2023 Corrected: $67,903

Finding Details

Title I, Title II, and Title IV, AL #84.010, #84.367, and #84.424, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Pennsylvania Department of Education (PDE) requires the Reconciliation of Cash on Hand Quarterly Report for any program for which they received monthly payments. These quarterly reports are due the 10th working days of January, April, July and October, for any period in which payments were received. Additionally, PDE also requires the Final Expenditure Report to be filed within 30 days after funds are expended but no later than 30 days after the ending date of the project. Since the reporting requirements had the same controls the criteria and finding were combined. Condition: The District did not file the Title I, Title II, and Title IV Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024. Additionally, the Final Expenditure Report for Title I, Title II, and Title IV were not filed by the required due date. The reports noted here were not related to a single audit requirement and thus were reported as a financial statement internal control finding. Cause and Effect: District personnel did not file the various quarterly and final expenditure reports by the required due dates. The District is potentially risking a withholding of federal funds by PDE when required reports are not filed. Identification of Repeat Finding: Yes, #2023-002 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all Reconciliation of Cash on Hand Quarterly Reports within 10 working days of quarter ending and Final Expenditure Reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan.
Title I, Title II, and Title IV, AL #84.010, #84.367, and #84.424, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Pennsylvania Department of Education (PDE) requires the Reconciliation of Cash on Hand Quarterly Report for any program for which they received monthly payments. These quarterly reports are due the 10th working days of January, April, July and October, for any period in which payments were received. Additionally, PDE also requires the Final Expenditure Report to be filed within 30 days after funds are expended but no later than 30 days after the ending date of the project. Since the reporting requirements had the same controls the criteria and finding were combined. Condition: The District did not file the Title I, Title II, and Title IV Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024. Additionally, the Final Expenditure Report for Title I, Title II, and Title IV were not filed by the required due date. The reports noted here were not related to a single audit requirement and thus were reported as a financial statement internal control finding. Cause and Effect: District personnel did not file the various quarterly and final expenditure reports by the required due dates. The District is potentially risking a withholding of federal funds by PDE when required reports are not filed. Identification of Repeat Finding: Yes, #2023-002 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all Reconciliation of Cash on Hand Quarterly Reports within 10 working days of quarter ending and Final Expenditure Reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan.
Title I, Title II, and Title IV, AL #84.010, #84.367, and #84.424, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Pennsylvania Department of Education (PDE) requires the Reconciliation of Cash on Hand Quarterly Report for any program for which they received monthly payments. These quarterly reports are due the 10th working days of January, April, July and October, for any period in which payments were received. Additionally, PDE also requires the Final Expenditure Report to be filed within 30 days after funds are expended but no later than 30 days after the ending date of the project. Since the reporting requirements had the same controls the criteria and finding were combined. Condition: The District did not file the Title I, Title II, and Title IV Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024. Additionally, the Final Expenditure Report for Title I, Title II, and Title IV were not filed by the required due date. The reports noted here were not related to a single audit requirement and thus were reported as a financial statement internal control finding. Cause and Effect: District personnel did not file the various quarterly and final expenditure reports by the required due dates. The District is potentially risking a withholding of federal funds by PDE when required reports are not filed. Identification of Repeat Finding: Yes, #2023-002 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all Reconciliation of Cash on Hand Quarterly Reports within 10 working days of quarter ending and Final Expenditure Reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan.
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: Yes, #2023-004. Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan.
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: Yes, #2023-004. Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan.
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: Yes, #2023-004. Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan.
Title I, Title II, and Title IV, AL #84.010, #84.367, and #84.424, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Pennsylvania Department of Education (PDE) requires the Reconciliation of Cash on Hand Quarterly Report for any program for which they received monthly payments. These quarterly reports are due the 10th working days of January, April, July and October, for any period in which payments were received. Additionally, PDE also requires the Final Expenditure Report to be filed within 30 days after funds are expended but no later than 30 days after the ending date of the project. Since the reporting requirements had the same controls the criteria and finding were combined. Condition: The District did not file the Title I, Title II, and Title IV Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024. Additionally, the Final Expenditure Report for Title I, Title II, and Title IV were not filed by the required due date. The reports noted here were not related to a single audit requirement and thus were reported as a financial statement internal control finding. Cause and Effect: District personnel did not file the various quarterly and final expenditure reports by the required due dates. The District is potentially risking a withholding of federal funds by PDE when required reports are not filed. Identification of Repeat Finding: Yes, #2023-002 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all Reconciliation of Cash on Hand Quarterly Reports within 10 working days of quarter ending and Final Expenditure Reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan.
Title I, Title II, and Title IV, AL #84.010, #84.367, and #84.424, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Pennsylvania Department of Education (PDE) requires the Reconciliation of Cash on Hand Quarterly Report for any program for which they received monthly payments. These quarterly reports are due the 10th working days of January, April, July and October, for any period in which payments were received. Additionally, PDE also requires the Final Expenditure Report to be filed within 30 days after funds are expended but no later than 30 days after the ending date of the project. Since the reporting requirements had the same controls the criteria and finding were combined. Condition: The District did not file the Title I, Title II, and Title IV Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024. Additionally, the Final Expenditure Report for Title I, Title II, and Title IV were not filed by the required due date. The reports noted here were not related to a single audit requirement and thus were reported as a financial statement internal control finding. Cause and Effect: District personnel did not file the various quarterly and final expenditure reports by the required due dates. The District is potentially risking a withholding of federal funds by PDE when required reports are not filed. Identification of Repeat Finding: Yes, #2023-002 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all Reconciliation of Cash on Hand Quarterly Reports within 10 working days of quarter ending and Final Expenditure Reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan.
Title I, Title II, and Title IV, AL #84.010, #84.367, and #84.424, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Pennsylvania Department of Education (PDE) requires the Reconciliation of Cash on Hand Quarterly Report for any program for which they received monthly payments. These quarterly reports are due the 10th working days of January, April, July and October, for any period in which payments were received. Additionally, PDE also requires the Final Expenditure Report to be filed within 30 days after funds are expended but no later than 30 days after the ending date of the project. Since the reporting requirements had the same controls the criteria and finding were combined. Condition: The District did not file the Title I, Title II, and Title IV Reconciliation of Cash on Hand Quarterly Reports for March 2024 and June 2024. Additionally, the Final Expenditure Report for Title I, Title II, and Title IV were not filed by the required due date. The reports noted here were not related to a single audit requirement and thus were reported as a financial statement internal control finding. Cause and Effect: District personnel did not file the various quarterly and final expenditure reports by the required due dates. The District is potentially risking a withholding of federal funds by PDE when required reports are not filed. Identification of Repeat Finding: Yes, #2023-002 Questioned Costs: None Recommendation: Procedures should be established to ensure that the District files all Reconciliation of Cash on Hand Quarterly Reports within 10 working days of quarter ending and Final Expenditure Reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. Management Response: See Corrective Action Plan.
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: Yes, #2023-004. Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan.
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: Yes, #2023-004. Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan.
Title I, Title II, Title IV – AL #84.010, 84.367, 84.424425, Year Ended June 30, 2024 U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: Federal expenditures should be posted to the federal funding source accounts in the general ledger as they are incurred, and significant adjusting entries reclassing expenditures should be at a minimum. This will allow for the proper reporting of the eligible amounts to claim for reimbursement. Condition: The district did not track the federal expenditures within the general ledger system, or if they were the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures Cause and Effect: The district was not knowledgeable in determining how to report allowable costs or how to maintain proper support and documentation for those expenditures. The failure to understand what expenditures are allowable and the failure to properly maintain the correct documentation of the expenditures allows for expenditures to potentially be improperly reported. Identification of Repeat Finding: Yes, #2023-004. Recommendation: Management should begin using proper funding source codes to ensure only allowable and eligible expenses are reported as federal expenditures and ensure they have the proper documentation to support those expenditures. Management Response: See Corrective Action Plan.