Audit 44458

FY End
2022-06-30
Total Expended
$2.37M
Findings
12
Programs
14
Organization: Gallatin County Cusd #7 (IL)
Year: 2022 Accepted: 2022-12-11

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
47309 2022-005 Material Weakness - B
47310 2022-006 Material Weakness - B
47311 2022-007 - - P
47312 2022-005 Material Weakness - B
47313 2022-006 Material Weakness - B
47314 2022-007 - - P
623751 2022-005 Material Weakness - B
623752 2022-006 Material Weakness - B
623753 2022-007 - - P
623754 2022-005 Material Weakness - B
623755 2022-006 Material Weakness - B
623756 2022-007 - - P

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $98,807 - 0
10.555 National School Lunch Program $31,160 - 0
84.424 Student Support and Academic Enrichment Program $23,692 - 0
84.010 Title I Grants to Local Educational Agencies $19,996 - 0
93.778 Medical Assistance Program $16,853 - 0
84.358 Rural Education $16,652 - 0
10.582 Fresh Fruit and Vegetable Program $15,561 - 0
10.558 Child and Adult Care Food Program $15,225 - 0
84.425 Education Stabilization Fund $13,696 Yes 0
84.367 Improving Teacher Quality State Grants $5,376 - 0
84.027 Special Education_grants to States $5,000 - 0
84.173 Special Education_preschool Grants $3,715 - 0
84.196 Education for Homeless Children and Youth $988 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
UMWWJCGFETU9 Dr. Judy Kaegi Auditee
6182728321 Jeffrey C. Stroder, CPA Auditor
No contacts on file

Notes to SEFA

Title: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Gallatin CUSD 7 and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following amounts were expended in the form of non-cash assistance by Gallatin CUSD 7 and should be included in the Schedule of Expenditures of Federal Awards: Non-Cash Commodities (CFDA 10.555) $31,160.

Finding Details

Criteria: For good internal controls, expenditures should be authorized. Documentation of supervisory approval should also be retained for all expenditures. Condition: According to the District, the Superintendent reviews all expenditures and supporting documentation before payment is authorized. However, there is no documentation of this review. Questioned Costs: None. Context: Total expenditures of the program were $794,301 for the year ended June 30, 2022. Effect: Increases the risk that inappropriate expenditures could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 12 expenditures and 10 did not have documentation of supervisory approval. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment. Recommendation: We recommend the District provide proper documentation of the Superintendent's approval for payment of invoices. Management's Response: The Superintendent will begin noting her approval with her initial on all invoices.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time sheets supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $408,694 for the year ended June 30, 2022. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 expenditures and 9 did not have supervisory approval. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the timesheet for payment of hourly employees. Management's Response: The Superintendent and Supervisors will begin reviewing the timesheets and note their approval on them for each pay period.
Criteria: Per Title 2 CFR 200.512(d), the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditors' report, or nine months after the end of the audit period. Condition: The data collection form for the audit of the year ended June 30, 2021 was due March 31, 2022, but was not submitted until June 17, 2022, or 78 days late. Questioned Costs: None. Context: The data collection form submission must include an attachment of the annual audit report of an independent auditor. As of April 2022, the auditor had not completed the audit in accordance with his agreement with the District. The District fired the auditor and hired a new firm to complete the audit, but the deadline had already passed. Effect: The submission of the prior year audit and data collection form was not done before the deadline. Cause: The data collection form could not be submitted without the audited financial statements. The firm hired to perform the audit failed to do so. They were fired in April 2022, after the submission deadline. The new firm completed the audit and the data collection form was filed on June 17, 2022. Recommendation: We recommend that all required filings be submitted timely according tot he Single Audit Act of 1984 and Title 2, U.S. Code of Federal Regulations guidelines. Management's Response: A new firm has been engaged to perform the District's audits. This will allow filings to be made before the deadlines.
Criteria: For good internal controls, expenditures should be authorized. Documentation of supervisory approval should also be retained for all expenditures. Condition: According to the District, the Superintendent reviews all expenditures and supporting documentation before payment is authorized. However, there is no documentation of this review. Questioned Costs: None. Context: Total expenditures of the program were $794,301 for the year ended June 30, 2022. Effect: Increases the risk that inappropriate expenditures could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 12 expenditures and 10 did not have documentation of supervisory approval. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment. Recommendation: We recommend the District provide proper documentation of the Superintendent's approval for payment of invoices. Management's Response: The Superintendent will begin noting her approval with her initial on all invoices.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time sheets supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $408,694 for the year ended June 30, 2022. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 expenditures and 9 did not have supervisory approval. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the timesheet for payment of hourly employees. Management's Response: The Superintendent and Supervisors will begin reviewing the timesheets and note their approval on them for each pay period.
Criteria: Per Title 2 CFR 200.512(d), the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditors' report, or nine months after the end of the audit period. Condition: The data collection form for the audit of the year ended June 30, 2021 was due March 31, 2022, but was not submitted until June 17, 2022, or 78 days late. Questioned Costs: None. Context: The data collection form submission must include an attachment of the annual audit report of an independent auditor. As of April 2022, the auditor had not completed the audit in accordance with his agreement with the District. The District fired the auditor and hired a new firm to complete the audit, but the deadline had already passed. Effect: The submission of the prior year audit and data collection form was not done before the deadline. Cause: The data collection form could not be submitted without the audited financial statements. The firm hired to perform the audit failed to do so. They were fired in April 2022, after the submission deadline. The new firm completed the audit and the data collection form was filed on June 17, 2022. Recommendation: We recommend that all required filings be submitted timely according tot he Single Audit Act of 1984 and Title 2, U.S. Code of Federal Regulations guidelines. Management's Response: A new firm has been engaged to perform the District's audits. This will allow filings to be made before the deadlines.
Criteria: For good internal controls, expenditures should be authorized. Documentation of supervisory approval should also be retained for all expenditures. Condition: According to the District, the Superintendent reviews all expenditures and supporting documentation before payment is authorized. However, there is no documentation of this review. Questioned Costs: None. Context: Total expenditures of the program were $794,301 for the year ended June 30, 2022. Effect: Increases the risk that inappropriate expenditures could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 12 expenditures and 10 did not have documentation of supervisory approval. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment. Recommendation: We recommend the District provide proper documentation of the Superintendent's approval for payment of invoices. Management's Response: The Superintendent will begin noting her approval with her initial on all invoices.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time sheets supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $408,694 for the year ended June 30, 2022. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 expenditures and 9 did not have supervisory approval. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the timesheet for payment of hourly employees. Management's Response: The Superintendent and Supervisors will begin reviewing the timesheets and note their approval on them for each pay period.
Criteria: Per Title 2 CFR 200.512(d), the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditors' report, or nine months after the end of the audit period. Condition: The data collection form for the audit of the year ended June 30, 2021 was due March 31, 2022, but was not submitted until June 17, 2022, or 78 days late. Questioned Costs: None. Context: The data collection form submission must include an attachment of the annual audit report of an independent auditor. As of April 2022, the auditor had not completed the audit in accordance with his agreement with the District. The District fired the auditor and hired a new firm to complete the audit, but the deadline had already passed. Effect: The submission of the prior year audit and data collection form was not done before the deadline. Cause: The data collection form could not be submitted without the audited financial statements. The firm hired to perform the audit failed to do so. They were fired in April 2022, after the submission deadline. The new firm completed the audit and the data collection form was filed on June 17, 2022. Recommendation: We recommend that all required filings be submitted timely according tot he Single Audit Act of 1984 and Title 2, U.S. Code of Federal Regulations guidelines. Management's Response: A new firm has been engaged to perform the District's audits. This will allow filings to be made before the deadlines.
Criteria: For good internal controls, expenditures should be authorized. Documentation of supervisory approval should also be retained for all expenditures. Condition: According to the District, the Superintendent reviews all expenditures and supporting documentation before payment is authorized. However, there is no documentation of this review. Questioned Costs: None. Context: Total expenditures of the program were $794,301 for the year ended June 30, 2022. Effect: Increases the risk that inappropriate expenditures could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 12 expenditures and 10 did not have documentation of supervisory approval. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment. Recommendation: We recommend the District provide proper documentation of the Superintendent's approval for payment of invoices. Management's Response: The Superintendent will begin noting her approval with her initial on all invoices.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time sheets supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $408,694 for the year ended June 30, 2022. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 expenditures and 9 did not have supervisory approval. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the timesheet for payment of hourly employees. Management's Response: The Superintendent and Supervisors will begin reviewing the timesheets and note their approval on them for each pay period.
Criteria: Per Title 2 CFR 200.512(d), the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditors' report, or nine months after the end of the audit period. Condition: The data collection form for the audit of the year ended June 30, 2021 was due March 31, 2022, but was not submitted until June 17, 2022, or 78 days late. Questioned Costs: None. Context: The data collection form submission must include an attachment of the annual audit report of an independent auditor. As of April 2022, the auditor had not completed the audit in accordance with his agreement with the District. The District fired the auditor and hired a new firm to complete the audit, but the deadline had already passed. Effect: The submission of the prior year audit and data collection form was not done before the deadline. Cause: The data collection form could not be submitted without the audited financial statements. The firm hired to perform the audit failed to do so. They were fired in April 2022, after the submission deadline. The new firm completed the audit and the data collection form was filed on June 17, 2022. Recommendation: We recommend that all required filings be submitted timely according tot he Single Audit Act of 1984 and Title 2, U.S. Code of Federal Regulations guidelines. Management's Response: A new firm has been engaged to perform the District's audits. This will allow filings to be made before the deadlines.