Audit 388434

2025-003: Significant Deficiency, Cut-off Errors in Preparing the SEFA U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425D (COVID-19—Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award years 2023-2025 Criteria: The schedule of expenditures of federal awards (SEFA) is required to be prepared on a basis consistent with the financial statements. Expenditures of federal awards are to be reported on the modified accrual basis of accounting and should be reported on the SEFA when incurred. Condition: The District reported expenditures on the fiscal year 2025 SEFA that were incurred in fiscal year 2024. Therefore, they were not reported on the SEFA in a manner consistent with the fiscal year in which they were reported as expenditures in the financial statements. This resulted in $24,762 of allowable costs reported on the fiscal year 2025 SEFA which were incurred in previous fiscal years. Cause: Inadequate reviews were in place to ensure that expenditures were reported on the SEFA in a manner consistent with the year they were incurred in the financial statements. Effect or potential effect: Inaccurate reporting of expenditures can result in actions taken by oversight agencies, which could impact future funding. Questioned costs: None Context: Approximately $24,762 of the $664,215 total Education Stabilization Funds reported on the fiscal year 2025 SEFA were incurred in a prior fiscal year. Identification as a repeat finding, if applicable: Not a repeat finding. Recommendation: We recommend the District implement procedures to ensure proper cutoff-is achieved in reporting expenditures on the SEFA. View of responsible officials: Management agrees with this finding.

2025-004: Equipment Management U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425D (COVID-19—Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award years 2023-2025 Criteria: The Uniform Guidance (2CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Also, in accordance with 2 CFR section 200.313(d)(1), property records must be maintained that include a description of the property, a serial number of other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. In accordance with 2 CFR section 200.313(d)(2), a physical inventory of equipment and property must be taken, and the results reconciled with the property records at least once every two years. Condition: During the fiscal year 2024 audit, it was previously reported that the District’s controls were not operating effectively to reasonably ensure the District had maintained property records with the above required information, nor had it performed the required physical inventory of equipment within the two previous years. During fiscal year 2025, the District incorporated processes and controls over equipment management that met the property record requirements. The District also performed a physical inventory during fiscal year 2025 that included counting and reconciling approximately half of the District’s equipment and property within this grant program. Therefore, the District had not yet met the requirements of performing a physical inventory of all equipment and property within the previous two years. Cause: Given the timing of when the District incorporated its processes and controls, insufficient time remained to perform a physical inventory of all the District’s equipment and property within this grant program, and only approximately half of the items were subject to the physical inventory. Effect or potential effect: The District is not in compliance with federal grant requirements over the physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: As noted above, the District updated its property records for all its property and equipment, and then approximately half of the District’s property and equipment was subject to a physical inventory. Identification as a repeat finding, if applicable: 2024-004 and 2024-006. Recommendation: We recommend the District continue to perform the processes and controls it added during fiscal year 2025, and complete the inventory count for the remaining items, to be compliance with the federal grant 2 year cycle. View of responsible officials: Management agrees with this finding.