Audit 45226

FY End
2022-06-30
Total Expended
$8.77M
Findings
32
Programs
13
Year: 2022 Accepted: 2023-09-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
39842 2022-006 Material Weakness - AB
39843 2022-003 Material Weakness - A
39844 2022-004 Material Weakness - B
39845 2022-005 Material Weakness Yes F
39846 2022-003 Material Weakness - A
39847 2022-004 Material Weakness - B
39848 2022-005 Material Weakness Yes F
39849 2022-003 Material Weakness - A
39850 2022-004 Material Weakness - B
39851 2022-005 Material Weakness Yes F
39852 2022-007 Material Weakness - L
39853 2022-008 Material Weakness - I
39854 2022-007 Material Weakness - L
39855 2022-008 Material Weakness - I
48207 2022-007 Material Weakness - L
48208 2022-008 Material Weakness - I
616284 2022-006 Material Weakness - AB
616285 2022-003 Material Weakness - A
616286 2022-004 Material Weakness - B
616287 2022-005 Material Weakness Yes F
616288 2022-003 Material Weakness - A
616289 2022-004 Material Weakness - B
616290 2022-005 Material Weakness Yes F
616291 2022-003 Material Weakness - A
616292 2022-004 Material Weakness - B
616293 2022-005 Material Weakness Yes F
616294 2022-007 Material Weakness - L
616295 2022-008 Material Weakness - I
616296 2022-007 Material Weakness - L
616297 2022-008 Material Weakness - I
624649 2022-007 Material Weakness - L
624650 2022-008 Material Weakness - I

Contacts

Name Title Type
MT7CTZVLX8G6 Brayden Savage Auditee
4053303410 Laura Perry Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on using the cash basis of accounting. Encumbrances are included when paid rather than when incurred. Some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Nonmonetary assistance is reported in the schedule at the fair market value of commodities received. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District prepares the schedule in a presentation format that is prescribed by the Oklahoma State Department of Education. This regulatory basis of accounting differs from accounting principles generally accepted in the United States of America, which require revenues to be recognized when they become available and measurable, or when they are earned, and expenditures or expenses to be recognized when the related liabilities are incurred for governmental fund types.The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Western Heights Independent School District No. 41 Oklahoma County, Oklahoma 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 Western Heights Independent School District No. 41 Oklahoma County, Oklahoma, it is not intended to and does not present the basic financial statements of Western Heights Independent School District No. 41 Oklahoma County, Oklahoma.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on using the cash basis of accounting. Encumbrances are included when paid rather than when incurred. Some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Nonmonetary assistance is reported in the schedule at the fair market value of commodities received. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Western Heights Independent School District No. 41 Oklahoma County did not have any awards that have been passed through to subrecipients.
Title: Transfers between Federal Programs Accounting Policies: Expenditures reported on the Schedule are reported on using the cash basis of accounting. Encumbrances are included when paid rather than when incurred. Some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Nonmonetary assistance is reported in the schedule at the fair market value of commodities received. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Western Heights Independent School District No. 41, Oklahoma County, Oklahoma received $12,510 for program assistance number 84.424 Title IV and $81,815 for program assistance number 84.365 Title III which are allowed to be transferred to be used for Title I Assistance number 84.010 and thus was reported above in the Title I revenues agree with corresponding expenditures.
Title: 97.036 FEMA Disaster Grants-Public Assistance Accounting Policies: Expenditures reported on the Schedule are reported on using the cash basis of accounting. Encumbrances are included when paid rather than when incurred. Some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Nonmonetary assistance is reported in the schedule at the fair market value of commodities received. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. August 3, 2021, The Districts received an award related to the presidential declared disaster 4575 severe winter storms for debris removal from ice storm from which occurred between 10/26/2020 and 10/29/2020. The District was awarded an amount of $22,842 for reimbursement of expenditures incurred during fiscal year 2021. The District received $19,035 of revenues in FY22 and the remaining in FY23, thus the total expenditures of $22,842 were reported on the schedule of expenditures of federal awards based on the date the grant was awarded in FY22.

Finding Details

2022-006 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: School Improvement Grant (SIG) Assistance Listing: 84.377A Grant Period: Year ending June 30, 2022 Condition: Expenditures were paid without supporting invoices. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Procedures in place did not detect keying error. Context: Sample of 18 expenditures from a population of 142. One expenditure did not have proper support for amount paid. No material questioned costs for fiscal year. Effect: Overclaimed funds Recommendation: Expenditures should not be paid without the proper supporting invoices. The District needs to ensure procedures are updated to ensure claims to be submitted are supported by proper invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Federal Programs Director will review claim to invoice and coding prior to submitting to the State Department.
2022-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll related expenditures were not supported by terms of the employment contract. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Employment contracts were not prepared based on actual contract days. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $311,952. Effect: The expenditures may be disallowed. Recommendation: Payroll-related expenditures need to be supported by the term of the employment contract. Employment contracts need to include actual contract days and the total amount of pay for those days. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Due to lack of training and guidance the prior human resource director, did not complete contracts accurately and consistently. New human resource director has completed training. In addition, District has reviewed a portion of contracts from FY21 and all contracts for FY22 and implemented procedures to ensure amounts paid agree with contract terms. FY23 new procedures were in place at time contracts were written.
2022-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll expenditures did not have time and effort documentation. Criteria: 2 CFR ?200.430(i)(1)(vii) Standards for Documentation of Personnel Expenses (1) Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. (vii) Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal Award. Cause: District did not have a policy in place to maintain time and effort documentation for new COVID-19 programs. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $569,933. Effect: The expenditures may be disallowed. Recommendation: The District needs to have time and effort documentation maintained. The District needs to develop procedures to maintain documentation supporting work performed. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: District was unaware of the time and effort requirement for this program. New Federal Program director is monitoring this time and effort. FY23 the time and effort documentation has been kept for this program.
2022-005 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify property and record on district inventory listing for federal programs. Context: A sample of $219,936 was selected for audit from a population of $232,477. The test found $219,936 was not in compliance. Effect: The expenditures may be disallowed. Recommendation: We recommend that property be properly tracked. We also recommend that procedures be put in place to properly identify property transaction and track property acquired with federal funds. Repeat Finding from Prior Year: Yes, Finding 2021-XIV Views of Responsible Officials and Planned Corrective Action: District will hire an asset management company, which will complete an initial database of District property and barcode items. Afterwards, District will maintain database. Encumbrance clerk has implemented new procedures to monitoring the coding of items greater than $5,000 with life longer than a year is properly coded in OCAS. Federal Programs Director will manage budgets and make sure if property/equipment will be purchased it is budgeted and proper approval to be obtained before purchase. Federal Program Director will also monitor during claim process, property items have been identified and tracked on District equipment listing.
2022-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll related expenditures were not supported by terms of the employment contract. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Employment contracts were not prepared based on actual contract days. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $311,952. Effect: The expenditures may be disallowed. Recommendation: Payroll-related expenditures need to be supported by the term of the employment contract. Employment contracts need to include actual contract days and the total amount of pay for those days. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Due to lack of training and guidance the prior human resource director, did not complete contracts accurately and consistently. New human resource director has completed training. In addition, District has reviewed a portion of contracts from FY21 and all contracts for FY22 and implemented procedures to ensure amounts paid agree with contract terms. FY23 new procedures were in place at time contracts were written.
2022-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll expenditures did not have time and effort documentation. Criteria: 2 CFR ?200.430(i)(1)(vii) Standards for Documentation of Personnel Expenses (1) Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. (vii) Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal Award. Cause: District did not have a policy in place to maintain time and effort documentation for new COVID-19 programs. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $569,933. Effect: The expenditures may be disallowed. Recommendation: The District needs to have time and effort documentation maintained. The District needs to develop procedures to maintain documentation supporting work performed. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: District was unaware of the time and effort requirement for this program. New Federal Program director is monitoring this time and effort. FY23 the time and effort documentation has been kept for this program.
2022-005 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify property and record on district inventory listing for federal programs. Context: A sample of $219,936 was selected for audit from a population of $232,477. The test found $219,936 was not in compliance. Effect: The expenditures may be disallowed. Recommendation: We recommend that property be properly tracked. We also recommend that procedures be put in place to properly identify property transaction and track property acquired with federal funds. Repeat Finding from Prior Year: Yes, Finding 2021-XIV Views of Responsible Officials and Planned Corrective Action: District will hire an asset management company, which will complete an initial database of District property and barcode items. Afterwards, District will maintain database. Encumbrance clerk has implemented new procedures to monitoring the coding of items greater than $5,000 with life longer than a year is properly coded in OCAS. Federal Programs Director will manage budgets and make sure if property/equipment will be purchased it is budgeted and proper approval to be obtained before purchase. Federal Program Director will also monitor during claim process, property items have been identified and tracked on District equipment listing.
2022-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll related expenditures were not supported by terms of the employment contract. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Employment contracts were not prepared based on actual contract days. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $311,952. Effect: The expenditures may be disallowed. Recommendation: Payroll-related expenditures need to be supported by the term of the employment contract. Employment contracts need to include actual contract days and the total amount of pay for those days. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Due to lack of training and guidance the prior human resource director, did not complete contracts accurately and consistently. New human resource director has completed training. In addition, District has reviewed a portion of contracts from FY21 and all contracts for FY22 and implemented procedures to ensure amounts paid agree with contract terms. FY23 new procedures were in place at time contracts were written.
2022-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll expenditures did not have time and effort documentation. Criteria: 2 CFR ?200.430(i)(1)(vii) Standards for Documentation of Personnel Expenses (1) Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. (vii) Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal Award. Cause: District did not have a policy in place to maintain time and effort documentation for new COVID-19 programs. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $569,933. Effect: The expenditures may be disallowed. Recommendation: The District needs to have time and effort documentation maintained. The District needs to develop procedures to maintain documentation supporting work performed. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: District was unaware of the time and effort requirement for this program. New Federal Program director is monitoring this time and effort. FY23 the time and effort documentation has been kept for this program.
2022-005 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify property and record on district inventory listing for federal programs. Context: A sample of $219,936 was selected for audit from a population of $232,477. The test found $219,936 was not in compliance. Effect: The expenditures may be disallowed. Recommendation: We recommend that property be properly tracked. We also recommend that procedures be put in place to properly identify property transaction and track property acquired with federal funds. Repeat Finding from Prior Year: Yes, Finding 2021-XIV Views of Responsible Officials and Planned Corrective Action: District will hire an asset management company, which will complete an initial database of District property and barcode items. Afterwards, District will maintain database. Encumbrance clerk has implemented new procedures to monitoring the coding of items greater than $5,000 with life longer than a year is properly coded in OCAS. Federal Programs Director will manage budgets and make sure if property/equipment will be purchased it is budgeted and proper approval to be obtained before purchase. Federal Program Director will also monitor during claim process, property items have been identified and tracked on District equipment listing.
2022-007 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Meal count submitted was not in agreement with supporting records. Criteria: 7 CFR Chapter 2 Section 210.8(a) Claims for reimbursement: Internal Controls?The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Cause: Procedures did not include a secondary review of submission Context: Incorrect meals served claimed Effect: One monthly submission of the 3 months sampled. This resulted in an estimated error of $466. This same month also had a site which was not certified and thus $28,283 was never claimed. Recommendation: Meal counts submitted for reimbursement need to agree with supporting documentation. Secondary review procedures should be implemented to verify agreement with claim submission and claims are certified. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Director of Child Nutrition will have a secondary person review claim before submitting to state department, to ensure accurate keying of data. Director of Finance will match up the Payment Notice of funds received to the monthly claims, to ensure all funds have been claimed and received.
2022-008 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Food Service Management Company contract was not properly executed and monitored during FY22. Criteria: 7 CFR Chapter 2 Section 210.16a Food Service Management Companies?Any school food authority (including a State agency in the capacity of a school food authority) may contract with a food service management company its food service operation in one or more of its schools. Cause: Lack of monitoring Context: No written contract was found for the fiscal year 2022 with the food service management company. Two out of the three monthly invoices did not have a detailed supporting documentation for the services billed. Effect: Noncompliance with Uniform Guidance and possible question costs. Recommendation: Written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.
2022-007 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Meal count submitted was not in agreement with supporting records. Criteria: 7 CFR Chapter 2 Section 210.8(a) Claims for reimbursement: Internal Controls?The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Cause: Procedures did not include a secondary review of submission Context: Incorrect meals served claimed Effect: One monthly submission of the 3 months sampled. This resulted in an estimated error of $466. This same month also had a site which was not certified and thus $28,283 was never claimed. Recommendation: Meal counts submitted for reimbursement need to agree with supporting documentation. Secondary review procedures should be implemented to verify agreement with claim submission and claims are certified. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Director of Child Nutrition will have a secondary person review claim before submitting to state department, to ensure accurate keying of data. Director of Finance will match up the Payment Notice of funds received to the monthly claims, to ensure all funds have been claimed and received.
2022-008 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Food Service Management Company contract was not properly executed and monitored during FY22. Criteria: 7 CFR Chapter 2 Section 210.16a Food Service Management Companies?Any school food authority (including a State agency in the capacity of a school food authority) may contract with a food service management company its food service operation in one or more of its schools. Cause: Lack of monitoring Context: No written contract was found for the fiscal year 2022 with the food service management company. Two out of the three monthly invoices did not have a detailed supporting documentation for the services billed. Effect: Noncompliance with Uniform Guidance and possible question costs. Recommendation: Written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.
2022-007 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Meal count submitted was not in agreement with supporting records. Criteria: 7 CFR Chapter 2 Section 210.8(a) Claims for reimbursement: Internal Controls?The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Cause: Procedures did not include a secondary review of submission Context: Incorrect meals served claimed Effect: One monthly submission of the 3 months sampled. This resulted in an estimated error of $466. This same month also had a site which was not certified and thus $28,283 was never claimed. Recommendation: Meal counts submitted for reimbursement need to agree with supporting documentation. Secondary review procedures should be implemented to verify agreement with claim submission and claims are certified. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Director of Child Nutrition will have a secondary person review claim before submitting to state department, to ensure accurate keying of data. Director of Finance will match up the Payment Notice of funds received to the monthly claims, to ensure all funds have been claimed and received.
2022-008 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Food Service Management Company contract was not properly executed and monitored during FY22. Criteria: 7 CFR Chapter 2 Section 210.16a Food Service Management Companies?Any school food authority (including a State agency in the capacity of a school food authority) may contract with a food service management company its food service operation in one or more of its schools. Cause: Lack of monitoring Context: No written contract was found for the fiscal year 2022 with the food service management company. Two out of the three monthly invoices did not have a detailed supporting documentation for the services billed. Effect: Noncompliance with Uniform Guidance and possible question costs. Recommendation: Written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.
2022-006 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: School Improvement Grant (SIG) Assistance Listing: 84.377A Grant Period: Year ending June 30, 2022 Condition: Expenditures were paid without supporting invoices. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Procedures in place did not detect keying error. Context: Sample of 18 expenditures from a population of 142. One expenditure did not have proper support for amount paid. No material questioned costs for fiscal year. Effect: Overclaimed funds Recommendation: Expenditures should not be paid without the proper supporting invoices. The District needs to ensure procedures are updated to ensure claims to be submitted are supported by proper invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Federal Programs Director will review claim to invoice and coding prior to submitting to the State Department.
2022-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll related expenditures were not supported by terms of the employment contract. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Employment contracts were not prepared based on actual contract days. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $311,952. Effect: The expenditures may be disallowed. Recommendation: Payroll-related expenditures need to be supported by the term of the employment contract. Employment contracts need to include actual contract days and the total amount of pay for those days. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Due to lack of training and guidance the prior human resource director, did not complete contracts accurately and consistently. New human resource director has completed training. In addition, District has reviewed a portion of contracts from FY21 and all contracts for FY22 and implemented procedures to ensure amounts paid agree with contract terms. FY23 new procedures were in place at time contracts were written.
2022-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll expenditures did not have time and effort documentation. Criteria: 2 CFR ?200.430(i)(1)(vii) Standards for Documentation of Personnel Expenses (1) Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. (vii) Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal Award. Cause: District did not have a policy in place to maintain time and effort documentation for new COVID-19 programs. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $569,933. Effect: The expenditures may be disallowed. Recommendation: The District needs to have time and effort documentation maintained. The District needs to develop procedures to maintain documentation supporting work performed. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: District was unaware of the time and effort requirement for this program. New Federal Program director is monitoring this time and effort. FY23 the time and effort documentation has been kept for this program.
2022-005 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify property and record on district inventory listing for federal programs. Context: A sample of $219,936 was selected for audit from a population of $232,477. The test found $219,936 was not in compliance. Effect: The expenditures may be disallowed. Recommendation: We recommend that property be properly tracked. We also recommend that procedures be put in place to properly identify property transaction and track property acquired with federal funds. Repeat Finding from Prior Year: Yes, Finding 2021-XIV Views of Responsible Officials and Planned Corrective Action: District will hire an asset management company, which will complete an initial database of District property and barcode items. Afterwards, District will maintain database. Encumbrance clerk has implemented new procedures to monitoring the coding of items greater than $5,000 with life longer than a year is properly coded in OCAS. Federal Programs Director will manage budgets and make sure if property/equipment will be purchased it is budgeted and proper approval to be obtained before purchase. Federal Program Director will also monitor during claim process, property items have been identified and tracked on District equipment listing.
2022-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll related expenditures were not supported by terms of the employment contract. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Employment contracts were not prepared based on actual contract days. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $311,952. Effect: The expenditures may be disallowed. Recommendation: Payroll-related expenditures need to be supported by the term of the employment contract. Employment contracts need to include actual contract days and the total amount of pay for those days. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Due to lack of training and guidance the prior human resource director, did not complete contracts accurately and consistently. New human resource director has completed training. In addition, District has reviewed a portion of contracts from FY21 and all contracts for FY22 and implemented procedures to ensure amounts paid agree with contract terms. FY23 new procedures were in place at time contracts were written.
2022-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll expenditures did not have time and effort documentation. Criteria: 2 CFR ?200.430(i)(1)(vii) Standards for Documentation of Personnel Expenses (1) Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. (vii) Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal Award. Cause: District did not have a policy in place to maintain time and effort documentation for new COVID-19 programs. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $569,933. Effect: The expenditures may be disallowed. Recommendation: The District needs to have time and effort documentation maintained. The District needs to develop procedures to maintain documentation supporting work performed. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: District was unaware of the time and effort requirement for this program. New Federal Program director is monitoring this time and effort. FY23 the time and effort documentation has been kept for this program.
2022-005 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify property and record on district inventory listing for federal programs. Context: A sample of $219,936 was selected for audit from a population of $232,477. The test found $219,936 was not in compliance. Effect: The expenditures may be disallowed. Recommendation: We recommend that property be properly tracked. We also recommend that procedures be put in place to properly identify property transaction and track property acquired with federal funds. Repeat Finding from Prior Year: Yes, Finding 2021-XIV Views of Responsible Officials and Planned Corrective Action: District will hire an asset management company, which will complete an initial database of District property and barcode items. Afterwards, District will maintain database. Encumbrance clerk has implemented new procedures to monitoring the coding of items greater than $5,000 with life longer than a year is properly coded in OCAS. Federal Programs Director will manage budgets and make sure if property/equipment will be purchased it is budgeted and proper approval to be obtained before purchase. Federal Program Director will also monitor during claim process, property items have been identified and tracked on District equipment listing.
2022-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll related expenditures were not supported by terms of the employment contract. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Employment contracts were not prepared based on actual contract days. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $311,952. Effect: The expenditures may be disallowed. Recommendation: Payroll-related expenditures need to be supported by the term of the employment contract. Employment contracts need to include actual contract days and the total amount of pay for those days. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Due to lack of training and guidance the prior human resource director, did not complete contracts accurately and consistently. New human resource director has completed training. In addition, District has reviewed a portion of contracts from FY21 and all contracts for FY22 and implemented procedures to ensure amounts paid agree with contract terms. FY23 new procedures were in place at time contracts were written.
2022-004 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll expenditures did not have time and effort documentation. Criteria: 2 CFR ?200.430(i)(1)(vii) Standards for Documentation of Personnel Expenses (1) Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. (vii) Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal Award. Cause: District did not have a policy in place to maintain time and effort documentation for new COVID-19 programs. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $569,933. Effect: The expenditures may be disallowed. Recommendation: The District needs to have time and effort documentation maintained. The District needs to develop procedures to maintain documentation supporting work performed. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: District was unaware of the time and effort requirement for this program. New Federal Program director is monitoring this time and effort. FY23 the time and effort documentation has been kept for this program.
2022-005 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify property and record on district inventory listing for federal programs. Context: A sample of $219,936 was selected for audit from a population of $232,477. The test found $219,936 was not in compliance. Effect: The expenditures may be disallowed. Recommendation: We recommend that property be properly tracked. We also recommend that procedures be put in place to properly identify property transaction and track property acquired with federal funds. Repeat Finding from Prior Year: Yes, Finding 2021-XIV Views of Responsible Officials and Planned Corrective Action: District will hire an asset management company, which will complete an initial database of District property and barcode items. Afterwards, District will maintain database. Encumbrance clerk has implemented new procedures to monitoring the coding of items greater than $5,000 with life longer than a year is properly coded in OCAS. Federal Programs Director will manage budgets and make sure if property/equipment will be purchased it is budgeted and proper approval to be obtained before purchase. Federal Program Director will also monitor during claim process, property items have been identified and tracked on District equipment listing.
2022-007 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Meal count submitted was not in agreement with supporting records. Criteria: 7 CFR Chapter 2 Section 210.8(a) Claims for reimbursement: Internal Controls?The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Cause: Procedures did not include a secondary review of submission Context: Incorrect meals served claimed Effect: One monthly submission of the 3 months sampled. This resulted in an estimated error of $466. This same month also had a site which was not certified and thus $28,283 was never claimed. Recommendation: Meal counts submitted for reimbursement need to agree with supporting documentation. Secondary review procedures should be implemented to verify agreement with claim submission and claims are certified. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Director of Child Nutrition will have a secondary person review claim before submitting to state department, to ensure accurate keying of data. Director of Finance will match up the Payment Notice of funds received to the monthly claims, to ensure all funds have been claimed and received.
2022-008 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Food Service Management Company contract was not properly executed and monitored during FY22. Criteria: 7 CFR Chapter 2 Section 210.16a Food Service Management Companies?Any school food authority (including a State agency in the capacity of a school food authority) may contract with a food service management company its food service operation in one or more of its schools. Cause: Lack of monitoring Context: No written contract was found for the fiscal year 2022 with the food service management company. Two out of the three monthly invoices did not have a detailed supporting documentation for the services billed. Effect: Noncompliance with Uniform Guidance and possible question costs. Recommendation: Written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.
2022-007 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Meal count submitted was not in agreement with supporting records. Criteria: 7 CFR Chapter 2 Section 210.8(a) Claims for reimbursement: Internal Controls?The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Cause: Procedures did not include a secondary review of submission Context: Incorrect meals served claimed Effect: One monthly submission of the 3 months sampled. This resulted in an estimated error of $466. This same month also had a site which was not certified and thus $28,283 was never claimed. Recommendation: Meal counts submitted for reimbursement need to agree with supporting documentation. Secondary review procedures should be implemented to verify agreement with claim submission and claims are certified. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Director of Child Nutrition will have a secondary person review claim before submitting to state department, to ensure accurate keying of data. Director of Finance will match up the Payment Notice of funds received to the monthly claims, to ensure all funds have been claimed and received.
2022-008 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Food Service Management Company contract was not properly executed and monitored during FY22. Criteria: 7 CFR Chapter 2 Section 210.16a Food Service Management Companies?Any school food authority (including a State agency in the capacity of a school food authority) may contract with a food service management company its food service operation in one or more of its schools. Cause: Lack of monitoring Context: No written contract was found for the fiscal year 2022 with the food service management company. Two out of the three monthly invoices did not have a detailed supporting documentation for the services billed. Effect: Noncompliance with Uniform Guidance and possible question costs. Recommendation: Written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.
2022-007 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Meal count submitted was not in agreement with supporting records. Criteria: 7 CFR Chapter 2 Section 210.8(a) Claims for reimbursement: Internal Controls?The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Cause: Procedures did not include a secondary review of submission Context: Incorrect meals served claimed Effect: One monthly submission of the 3 months sampled. This resulted in an estimated error of $466. This same month also had a site which was not certified and thus $28,283 was never claimed. Recommendation: Meal counts submitted for reimbursement need to agree with supporting documentation. Secondary review procedures should be implemented to verify agreement with claim submission and claims are certified. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Director of Child Nutrition will have a secondary person review claim before submitting to state department, to ensure accurate keying of data. Director of Finance will match up the Payment Notice of funds received to the monthly claims, to ensure all funds have been claimed and received.
2022-008 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Food Service Management Company contract was not properly executed and monitored during FY22. Criteria: 7 CFR Chapter 2 Section 210.16a Food Service Management Companies?Any school food authority (including a State agency in the capacity of a school food authority) may contract with a food service management company its food service operation in one or more of its schools. Cause: Lack of monitoring Context: No written contract was found for the fiscal year 2022 with the food service management company. Two out of the three monthly invoices did not have a detailed supporting documentation for the services billed. Effect: Noncompliance with Uniform Guidance and possible question costs. Recommendation: Written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.