FAC Explorer

Audit 38111

FY End
2022-06-30
Total Expended
$1.11M
Findings
4
Programs
11
Organization: Mountain Valley School District Re-1 (CO)
Year: 2022 Accepted: 2023-04-13
Auditor: Wall Smith Bateman INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30160 2022-002 Significant Deficiency - L
30161 2022-003 Material Weakness - AB
606602 2022-002 Significant Deficiency - L
606603 2022-003 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.425 Covid-19 Education Stabilization Fund $318,754 Yes 1
10.665 Schools and Roads - Grants to States $208,659 - 0
84.184 School Safety National Activities (formerly, Safe and Drug-Free Schools and Communities_national Programs) $127,409 - 0
84.010 Title I Grants to Local Educational Agencies $81,475 - 0
10.553 School Breakfast Program $41,586 - 0
93.575 Child Care and Development Block Grant $27,654 - 0
84.358 Rural Education $18,193 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $10,893 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
10.555 National School Lunch Program $7,646 - 0
84.323 Special Education - State Personnel Development $7,020 - 0

Contacts

Name Title Type
EPG2DZH1AZB1 Lisa Dupont Auditee
7196552578 Kimberley Temple Auditor
No contacts on file

Notes to SEFA

Title: FOOD DISTRIBUTION Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Pass-through identifying numbers are presented where available. The District did not elect to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance for the year ended June 30, 2022. In addition, the District did not pass-through federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the Schedule at the fair market value of commodities received and disbursed.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Pass-through identifying numbers are presented where available. The District did not elect to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance for the year ended June 30, 2022. In addition, the District did not pass-through federal funds to subrecipients. 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 (the Schedule) includes the federal grant activity of Mountain Valley School District RE-1 under programs of the federal government for the year ended June 30, 2022. 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 Mountain Valley District RE-1, it is not intended to and does not present the financial position, changes in net position, or cash flows of Mountain Valley School District RE-1.

Finding Details

Finding 2022-002
Finding 2022-002: COVID-19 Education Stabilization Fund, CFDA 84.425D U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Reporting Grant No.: 4425 Type of Finding: Internal Control Over Compliance (significant deficiency) and Compliance (noncompliance) Condition: The Education Stabilization Fund annual financial report was not filed until December 30, 2021. Cause: The District did not have a system of internal control in place to ensure compliance with the reporting requirements of the Education Stabilization Fund. Criteria: The Education Stabilization Fund grant terms and conditions required the submission of the annual financial report to the Colorado Department of Education no later than October 29, 2021. Effect: The District did not comply with grant reporting deadlines. Recommendation: The District should strengthen its internal controls with adopted policies and procedures to ensure compliance with federal program requirements.
Finding 2022-003
Finding 2022-003: COVID-19 Education Stabilization Fund, CFDA 84.425U U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Activities Allowed and Unallowed, Allowable Costs/Cost Principles Grant No.: 4414 Type of Finding: Internal Control Over Compliance (material weakness) and Compliance (material noncompliance) Condition: The District submitted and received reimbursement for indirect costs that exceeded the approved application for funds approved by the Colorado Department of Education, and did not have supporting documentation to substantiate the amount requested. Cause: The District does not have a system of internal control in place to ensure expenditures are in compliance with grant terms and properly supported. Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require the source and application of funds for federally-funded activities be supported by source documentation (2 CFR 200.302(b)(3)). Questioned Costs: $27,743 Effect: The District did not comply with financial management requirements for federal awards. An audit adjustment was proposed to correctly state revenue and expenditure account balances. Recommendation: The District should strengthen its internal controls with adopted policies and procedures to include a review of reimbursement requests to ensure indirect costs are allowable and adequate source documentation is maintained for federally-funded activities.
Finding 2022-002
Finding 2022-002: COVID-19 Education Stabilization Fund, CFDA 84.425D U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Reporting Grant No.: 4425 Type of Finding: Internal Control Over Compliance (significant deficiency) and Compliance (noncompliance) Condition: The Education Stabilization Fund annual financial report was not filed until December 30, 2021. Cause: The District did not have a system of internal control in place to ensure compliance with the reporting requirements of the Education Stabilization Fund. Criteria: The Education Stabilization Fund grant terms and conditions required the submission of the annual financial report to the Colorado Department of Education no later than October 29, 2021. Effect: The District did not comply with grant reporting deadlines. Recommendation: The District should strengthen its internal controls with adopted policies and procedures to ensure compliance with federal program requirements.
Finding 2022-003
Finding 2022-003: COVID-19 Education Stabilization Fund, CFDA 84.425U U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Activities Allowed and Unallowed, Allowable Costs/Cost Principles Grant No.: 4414 Type of Finding: Internal Control Over Compliance (material weakness) and Compliance (material noncompliance) Condition: The District submitted and received reimbursement for indirect costs that exceeded the approved application for funds approved by the Colorado Department of Education, and did not have supporting documentation to substantiate the amount requested. Cause: The District does not have a system of internal control in place to ensure expenditures are in compliance with grant terms and properly supported. Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require the source and application of funds for federally-funded activities be supported by source documentation (2 CFR 200.302(b)(3)). Questioned Costs: $27,743 Effect: The District did not comply with financial management requirements for federal awards. An audit adjustment was proposed to correctly state revenue and expenditure account balances. Recommendation: The District should strengthen its internal controls with adopted policies and procedures to include a review of reimbursement requests to ensure indirect costs are allowable and adequate source documentation is maintained for federally-funded activities.