FAC Explorer

Audit 361473

FY End
2024-06-30
Total Expended
$2.50M
Findings
2
Programs
10
Organization: Edison Local School District (OH)
Year: 2024 Accepted: 2025-07-07
Auditor: Keith Faber Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
570500 2024-002 Material Weakness - L
1146942 2024-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $397,878 - 0
84.010 Title I Grants to Local Educational Agencies $274,234 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $187,560 Yes 1
10.553 School Breakfast Program $108,685 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $71,758 - 0
84.424 Student Support and Academic Enrichment Program $21,492 - 0
84.424 Student Support and Academic Enrichment Program - Stonger Connections Grant $13,330 - 0
84.173 Special Education Preschool Grants $11,125 - 0
84.027 Special Education Grants to States $10,679 - 0
84.425 Education Stabilization Fund $5,323 Yes 0

Contacts

Name Title Type
KBE8P9ZG68K3 Stephanie Hanna Auditee
4194994625 Jonathan Lawless, Cfe Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Edison Local School District, Erie County, Ohio (the District) under programs of the federal government for the year ended June 30, 2024. The information on this Schedule is prepared 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 or changes in net position of the District.
Title: NOTE D - CHILD NUTRITION CLUSTER Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District commingles cash receipts from the U.S. Department of Agriculture with similar state grants. When reporting expenditures on this Schedule, the District assumes it expends federal monies first.
Title: NOTE E - FOOD DONATION PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District reports commodities consumed on the Schedule at the entitlement value. The District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.
Title: NOTE F - TRANSFERS BETWEEN PROGRAM YEARS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal regulations require schools to obligate certain federal awards by June 30. However, with the Ohio Department of Education and Workforce’s consent, schools can transfer unobligated amounts to the subsequent fiscal year’s program. The District transferred the following amounts from 2024 to 2025 programs:

Finding Details

Finding 2024-002
2 CFR 1000.10 gives regulatory effect to the U.S. Department of Treasury for 2 CFR 200.332 which states, in part, pass-through entities must ensure every subaward includes requirements that the pass-through entity imposes on the subrecipient in order for the pass-through entity to meet its own responsibility to the Federal awarding agency including identification of any required financial and performance reports. The grant’s pass-through entity is the Ohio Office of Budget and Management (OBM). State Fiscal Recovery Funds K-12 School Safety Grants Frequently Asked Questions require recipient schools to complete quarterly financial status reports via the OBM grants portal until they have spent all funds and completed their projects. Recipient schools are also required to split their expenditures across their entire district into two categories, capitalized and non-capitalized expenditures. The District did not have proper internal controls in place to ensure the accuracy of the quarterly financial status reports. During testing of quarterly financial status reports for the Coronavirus State and Local Fiscal Recovery Funds (AL #21.027), the District did not report $175,227 of capitalized expenditures as Amount Spent on Real Property / Construction Capitalized Improvements on the July 1, 2023 through September 30, 2023 ($53,952), the October 1, 2023 through December 31, 2023 ($121,113), and the January 1, 2024 through March 31, 2024 ($162) quarterly financial status reports. Failure to have the proper controls in place to ensure the accurate submission of the quarterly financial status reports could result in Treasury taking action against the District for failure to comply with programmatic requirements. The District should implement and have controls in place to ensure the quarterly expenditure reports are accurate.
Finding 2024-002
2 CFR 1000.10 gives regulatory effect to the U.S. Department of Treasury for 2 CFR 200.332 which states, in part, pass-through entities must ensure every subaward includes requirements that the pass-through entity imposes on the subrecipient in order for the pass-through entity to meet its own responsibility to the Federal awarding agency including identification of any required financial and performance reports. The grant’s pass-through entity is the Ohio Office of Budget and Management (OBM). State Fiscal Recovery Funds K-12 School Safety Grants Frequently Asked Questions require recipient schools to complete quarterly financial status reports via the OBM grants portal until they have spent all funds and completed their projects. Recipient schools are also required to split their expenditures across their entire district into two categories, capitalized and non-capitalized expenditures. The District did not have proper internal controls in place to ensure the accuracy of the quarterly financial status reports. During testing of quarterly financial status reports for the Coronavirus State and Local Fiscal Recovery Funds (AL #21.027), the District did not report $175,227 of capitalized expenditures as Amount Spent on Real Property / Construction Capitalized Improvements on the July 1, 2023 through September 30, 2023 ($53,952), the October 1, 2023 through December 31, 2023 ($121,113), and the January 1, 2024 through March 31, 2024 ($162) quarterly financial status reports. Failure to have the proper controls in place to ensure the accurate submission of the quarterly financial status reports could result in Treasury taking action against the District for failure to comply with programmatic requirements. The District should implement and have controls in place to ensure the quarterly expenditure reports are accurate.