FAC Explorer

Audit 403412

FY End
2025-06-30
Total Expended
$824,921
Findings
2
Programs
8
Organization: Clay Local School District (OH)
Year: 2025 Accepted: 2026-06-10
Auditor: KEITH FABER AUDITOR OF STATE

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1217261 2025-004 Material Weakness Yes L
1217262 2025-004 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $305,322 Yes 0
10.555 NATIONAL SCHOOL LUNCH PROGRAM $180,238 Yes 1
84.027 SPECIAL EDUCATION GRANTS TO STATES $149,117 Yes 0
10.553 SCHOOL BREAKFAST PROGRAM $80,564 Yes 1
84.358 RURAL EDUCATION $27,475 Yes 0
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $24,494 Yes 0
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $20,200 Yes 0
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $4,300 Yes 0

Contacts

Name Title Type
CJD7HAJLYB64 Brandi Blackburn Auditee
7403546645 Cristal R. Jones, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Clay Local School District (the School District) under programs of the federal government for the year ended June 30, 2025. 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 the School District, it is not intended to and does not present the financial position or changes in net position of the School District.
Expenditures reported on the Schedule are reported on the cash 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.
The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The School District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the School District assumes it expends federal monies first.
The School District reports commodities consumed on the Schedule at the entitlement value. The School District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.
The School District passes certain federal awards received from Ohio Department of Education and Workforce (DEW) to other governments or not-for-profit agencies (subrecipients). As Note 2 describes, the School District reports expenditures of federal awards to subrecipients when paid in cash. As a pass-through entity, the School District has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.

Finding Details

Finding 2025-004
2 CFR § 400.1 gives regulatory effect to the Department of Agriculture for 2 CFR § 200.302(b)(3) which provides that the financial management system of each non-Federal entity must provide for records that sufficiently identify the amount, source and expenditure of funds for federally-funded activities. These records must contain information necessary to identify federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income and interest and must be supported by source documentation. 2 CFR § 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish, document and maintain effective internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 7 CFR §§ 210.7(c), 210.8(c), and 225.9(d)) provide that at a minimum, a claim must include the number of reimbursable meals/snacks served by category and type during the period (generally a month) covered by the claim. All meals/snacks claimed for reimbursement must (a) be of types authorized by the school food authority’s, institution’s, or sponsor’s administering agency; (b) be served to eligible children; and (c) be supported by accurate meal/snack counts and records indicating the number of meals served by category and type. 100% percent of the site claim forms that were prepared by the Nutrition Group and provided to the Treasurer for submission during fiscal year 2025 were not reviewed for accuracy of information before submitting for reimbursement. During the first half of the fiscal year, the School District completed manual counts of snacks served. An over-reimbursement related to snacks in the amount of $179 in 1 month of the 2 months (50%) tested for compliance. This error occurred due to a weakness in internal controls which failed to ensure site claim forms for reimbursable meals and snacks served at each building and submitted to the Ohio Department of Education were entered correctly. The School District should implement policies and procedures to help ensure that monthly site claim forms prepared and provided by the Nutrition Group are reviewed prior to submission to reflect actual counts for reimbursable meals and snacks served.