Audit 44286

FY End
2022-06-30
Total Expended
$18.81M
Findings
40
Programs
15
Year: 2022 Accepted: 2023-07-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
44122 2022-002 Material Weakness Yes B
44123 2022-003 Material Weakness Yes B
44124 2022-002 Material Weakness Yes B
44125 2022-003 Material Weakness Yes B
44126 2022-002 Material Weakness Yes B
44127 2022-003 Material Weakness Yes B
44128 2022-002 Material Weakness Yes B
44129 2022-003 Material Weakness Yes B
44130 2022-004 Material Weakness Yes C
44131 2022-004 Material Weakness Yes C
44132 2022-004 Material Weakness Yes C
44133 2022-004 Material Weakness Yes C
44134 2022-004 Material Weakness Yes C
44135 2022-002 Material Weakness Yes B
44136 2022-003 Material Weakness Yes B
44137 2022-004 Material Weakness Yes C
44138 2022-002 Material Weakness Yes B
44139 2022-003 Material Weakness Yes B
44140 2022-004 Material Weakness Yes C
44141 2022-002 Material Weakness Yes B
620564 2022-002 Material Weakness Yes B
620565 2022-003 Material Weakness Yes B
620566 2022-002 Material Weakness Yes B
620567 2022-003 Material Weakness Yes B
620568 2022-002 Material Weakness Yes B
620569 2022-003 Material Weakness Yes B
620570 2022-002 Material Weakness Yes B
620571 2022-003 Material Weakness Yes B
620572 2022-004 Material Weakness Yes C
620573 2022-004 Material Weakness Yes C
620574 2022-004 Material Weakness Yes C
620575 2022-004 Material Weakness Yes C
620576 2022-004 Material Weakness Yes C
620577 2022-002 Material Weakness Yes B
620578 2022-003 Material Weakness Yes B
620579 2022-004 Material Weakness Yes C
620580 2022-002 Material Weakness Yes B
620581 2022-003 Material Weakness Yes B
620582 2022-004 Material Weakness Yes C
620583 2022-002 Material Weakness Yes B

Programs

Contacts

Name Title Type
ZWZ3AARR4NK5 Michelle Cage Auditee
6628342175 Barry McKenzie Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Schedule of Expenditures of Federal Awards(1) Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Holmes County Consolidated School District 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 the Holmes County Consolidated School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Holmes County Consolidated School District.(2) Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the same basis of accounting and the same significant accounting policies, as applicable, as those used for the financial statements; however, the expenditures include transfers out. 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.(3) Indirect Cost RateThe Holmes County Consolidated School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.(4) Other ItemsDonated commodities are included in the National School Lunch Program.E-rate funds have not been included on this schedule due to the fact the FCC considers the support to be in the form of providing a discount to the schools and libraries and does not consider the assistance to be direct financial support. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.
Finding 2022-003/ Repeat Finding 2021-004 / Repeat Finding 2020-004 Weakness in controls surrounding payroll expenditures. Programs: Child Nutrition Cluster, ALN #10.553; 10.555; 10.559 Title I grants to local educational agencies, ALN #84.010 Supporting Effective instruction state grants, ALN # 84.367 Special Education Cluster, ALN # 84.027; 84.173 Compliance Requirement: Allowable Cost Questioned Cost: Unknown Repeat Finding: Yes Criteria: The school district is charged with developing controls surrounding the payroll expenditure cycle that will provide for authorization of pay transactions through school board approval and the existence of time and attendance records. Controls should also include policies and procedures that will ensure compliance with the record-keeping requirements of federal wage and hour law. Finally, assignments for new employees should align to board approved duties and contracted descriptions. Condition: In our review of the controls surrounding payroll expenditures, we noted that the school board did not approve several supplemental amounts paid to district employees, including supplements for extra duties assigned. We also noted that employee time sheets were not being reconciled to pay. Cause: The cause is likely an oversight or lack of controls to ensure items were reconciled and approved appropriately. Effect: The effect is a breakdown in the controls surrounding the payroll expenditure cycle and exposure to risk of noncompliance with federal wage and hour law. Further, employees who are approved for one position are actually serving in a different capacity. When not reconciling to time sheets, employees could be overpaid or underpaid. Recommendation: We recommend that the school district comply with the recordkeeping requirements of the federal wage and hour law. We further recommend that all supplemental pay amounts be approved by the school board and that all employees be approved for the position/title that corresponds to their actual work assignments. We recommend the district reconcile to employee time sheets. View of Responsible Officials: The district will implement controls to ensure that all payroll expenditures are approved and documented within the board minutes.
Finding 2022-004/ Repeat Finding 2021-005 Weaknesses in controls surrounding accounting for federal grants. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN # 84.010 Rural Education, ALN #84.358 Supporting Effective Instruction State Grants, ALN # 84.367 Student Support and Academic Enrichment Program, ALN # 84.424A IDEA Part B , ALN# 84.027; IDEA Preschool, ALN # 84.173 Twenty-First Century ? ALN# 84.287 Compliance requirement: Cash Management Criteria: Management is responsible for establishing a proper internal control system to ensure adequate financial accountability and safeguarding of the federal program assets. Condition: During fieldwork, we noted the following fund balances at June 30, 2022 per district?s financial statements: (1) Title I local grants to educational agencies - $876,819 (2) Rural Education - $83,782 (3) Supporting Effective Instruction State Grants - $72,758 (4) Student Support and Academic Enrichment Program - $191,022 (5) IDEA Part B - $ 430,195 (6) IDEA Preschool - $12,109 (7) Twenty-first Century - $59,151 Context: During the course of the audit, we noted that the financials provided by the district showed fund balances in the federal reimbursable grants that should not have a fund balance. Questioned Costs: $540,526. Cause: Lack of adequate controls to ensure that the district does not request more funding than what has been expended. Effect: As a result, the school district is in noncompliance with the federal regulations and could result in repaying the Mississippi Department of Education for excess funds received during the year. Recommendation:The school district must develop policies and procedures to ensure that the accounting system reflects the federal budget. Views of Responsible Officials The district will ensure that all federal programs are recorded/distinguished by Grant year using a designated `program code? (ex. 020, 021) in the accounting system. This will allow for proper accounting of each grant received by the district.
Material Weakness and Noncompliance Finding 2022-002/ Repeat 2021-003 / Repeat Finding 2020-003 Weaknesses in controls surrounding non-payroll expenditures. Program: U. S. Department of Education Passed-through the Mississippi Department of Education Title I Grants to Local Educational Agencies, ALN# 84.010 Child Nutrition Cluster, ALN # 10.553; 10.555, 10.559 Special Education Cluster, ALN # 84.027; 84.173 Education Stabilization Fund (ESSER I), ALN# 84.425D Compliance requirement: Allowable Cost/Cost Principles Questioned Costs: Unknown Repeat Finding - Yes Criteria: Management is responsible for ensuring that all non-payroll expenditures made by the district are adequately documented and approved by the governing board. Condition: We noted the following items while testing non-payroll expenditures: - Several instances of the service being performed before the PO was issued - Several invoices reviewed were dated before the purchase order date Context: During the course of the engagement, we were unable to get adequate support for testing non-payroll expenditures. Cause: The district did not have the proper controls and procedures in place to ensure non-payroll expenditures and applicable processes are properly board approved. Controls were also not in place to ensure that all approvals were properly recorded accurately in the minutes. Effect: Omitting documentation of approval or receipt of items could result in payments of unauthorized amounts to vendors without receiving the requested goods. Recommendation: We recommend the district implement procedures and internal controls to ensure that all invoices are properly canceled and that higher quotes be approved by the school board. Views of Responsible Officials The district will implement controls to ensure that all invoices are canceled and higher quotes are approved and documented within the board minutes.