FAC Explorer

Audit 40032

FY End
2022-06-30
Total Expended
$1.40M
Findings
6
Programs
9
Organization: Naco Elementary School District No.23 (AZ)
Year: 2022 Accepted: 2023-04-16
Auditor: Cwdl Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42193 2022-004 Material Weakness - AB
42194 2022-004 Material Weakness - AB
42195 2022-004 Material Weakness - AB
618635 2022-004 Material Weakness - AB
618636 2022-004 Material Weakness - AB
618637 2022-004 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $252,491 Yes 1
84.010 Title I Grants to Local Educational Agencies $246,306 Yes 0
10.559 Summer Food Service Program for Children $193,998 - 0
84.367 Improving Teacher Quality State Grants $49,467 - 0
84.365 English Language Acquisition State Grants $27,547 - 0
84.027 Special Education_grants to States $16,451 - 0
84.424 Student Support and Academic Enrichment Program $8,698 - 0
10.555 National School Lunch Program $8,178 - 0
10.542 Pandemic Ebt Food Benefits $614 - 0

Contacts

Name Title Type
DARFCMBALGL9 Donna Horton Auditee
5204325060 William Dobridge Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF ACCOUNTING 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. 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 District's federal grant activity 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).
Title: NOTE 3 - FEDERAL ASSISTANCE LISTING NUMBERS 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The program titles and federal assistance listing numbers were obtained from the federal or pass-through grantor.
Title: NOTE 5 - COMPLIANCE SUPPLEMENT 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The audit of the federal awards was completed under the OMB Compliance Supplement issued April 2022.

Finding Details

Finding 2022-004
2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.
Finding 2022-004
2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.
Finding 2022-004
2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.
Finding 2022-004
2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.
Finding 2022-004
2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.
Finding 2022-004
2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.