FAC Explorer

Audit 40885

FY End
2022-06-30
Total Expended
$32.68M
Findings
2
Programs
44
Organization: Kokomo School Corporation (IN)
Year: 2022 Accepted: 2023-04-10
Auditor: Indiana State Board of Accounts

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43784 2022-001 Material Weakness - F
620226 2022-001 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies 21 $3.18M - 0
93.600 Head Start 21 $2.76M - 0
84.010 Title I Grants to Local Educational Agencies 22 $2.69M - 0
10.555 National School Lunch Program 22 $2.63M Yes 0
93.600 Head Start 22 $2.55M - 0
84.027 Special Education_grants to States 21 $1.79M - 0
84.027 Special Education_grants to States 22 $1.74M - 0
10.553 School Breakfast Program 22 $784,208 Yes 0
84.425 Education Stabilization Fund 22 $711,767 Yes 0
10.559 Summer Food Service Program for Children 21 $589,325 Yes 0
84.367 Improving Teacher Quality State Grants 22 $443,648 - 0
84.425 Education Stabilization Fund 21 $346,862 Yes 0
84.048 Career and Technical Education -- Basic Grants to States 22 $334,890 - 0
84.377 School Improvement Grants 21 $311,787 - 0
10.555 National School Lunch Program 21 $278,237 Yes 0
32.004 Universal Service Fund - Schools and Libraries 22 $264,820 - 0
84.048 Career and Technical Education -- Basic Grants to States 21 $254,440 - 0
84.367 Improving Teacher Quality State Grants 21 $250,752 - 0
84.424 Student Support and Academic Enrichment Program 21 $161,081 - 0
84.377 School Improvement Grants 22 $158,806 - 0
10.582 Fresh Fruit and Vegetable Program 22 $149,407 Yes 0
93.778 Medical Assistance Program 21 $128,321 - 0
84.173 Special Education_preschool Grants 22 $123,833 - 0
93.778 Medical Assistance Program 22 $117,238 - 0
84.002 Adult Education - Basic Grants to States 22 $110,096 - 0
84.287 Twenty-First Century Community Learning Centers 21 $90,716 - 0
84.173 Special Education_preschool Grants 21 $86,968 - 0
10.558 Child and Adult Care Food Program 22 $86,241 - 0
84.196 Education for Homeless Children and Youth 21 $69,350 - 0
84.002 Adult Education - Basic Grants to States 21 $66,031 - 0
10.559 Summer Food Service Program for Children 22 $64,150 Yes 0
84.424 Student Support and Academic Enrichment Program 22 $54,939 - 0
10.558 Child and Adult Care Food Program 21 $53,680 - 0
10.582 Fresh Fruit and Vegetable Program 21 $34,152 - 0
93.575 Child Care and Development Block Grant 22 $28,934 - 0
84.196 Education for Homeless Children and Youth 22 $26,673 - 0
84.365 English Language Acquisition State Grants 21 $12,984 - 0
10.575 Farm to School Grant Program 22 $9,400 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs 22 $8,525 - 0
84.365 English Language Acquisition State Grants 22 $6,143 - 0
84.287 Twenty-First Century Community Learning Centers 22 $4,244 - 0
10.649 Pandemic Ebt Administrative Costs 22 $3,063 - 0
21.019 Coronavirus Relief Fund 21 $1,331 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs 21 $1,119 - 0

Contacts

Name Title Type
L4VBPEJ3R8W9 Robert McIntire Auditee
7654558000 Beth Kelley, Cpa, Cfe Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1. Summary of Significant Accounting PoliciesA. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federalgrant activity of the School Corporation under programs of the federal government for theyears ended June 30, 2021 and 2022. The information in the SEFA is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the SEFA presents only a select portion of theoperations of the School Corporation, it is not intended to and does not present the financialposition of the School Corporation.The Uniform Guidance requires an annual audit of nonfederal entities expending a totalamount of federal awards equal to or in excess of $750,000 in any fiscal year unless byconstitution or statute a less frequent audit is required. In accordance with Indiana Code(IC 5-11-1-25), audits of school corporations shall be conducted biennially. Such audits shallinclude both years within the biennial period.B. Other Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the cash basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMBCircular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowed or are limited as to reimbursement. When federal grants are received on a reimbursementbasis, the federal awards are considered expended when the reimbursement isreceived. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
FINDING 2022-001 Subject: COVID-19 - Education Stabilization Fund - Equipment Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425D Federal Award Number and Year (or Other Identifying Number): 7000-S425D200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation purchased $438,016 of equipment with COVID-19 - Education Stabilization Fund funds. The equipment was not added to the property record which would include a description of the property, a serial number or 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. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and 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." Cause Management had not established a system of internal control that would have ensured compliance with the grant agreement and the Equipment and Real Property compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a system of internal control to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Finding 2022-001
FINDING 2022-001 Subject: COVID-19 - Education Stabilization Fund - Equipment Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425D Federal Award Number and Year (or Other Identifying Number): 7000-S425D200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation purchased $438,016 of equipment with COVID-19 - Education Stabilization Fund funds. The equipment was not added to the property record which would include a description of the property, a serial number or 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. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and 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." Cause Management had not established a system of internal control that would have ensured compliance with the grant agreement and the Equipment and Real Property compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a system of internal control to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.