FAC Explorer

Audit 45283

FY End
2022-06-30
Total Expended
$2.45M
Findings
4
Programs
11
Organization: Oberon Public School District No. 16 (ND)
Year: 2022 Accepted: 2023-03-27
Auditor: North Dakota Office of the State Auditor

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44218 2022-004 Material Weakness Yes L
44219 2022-005 Material Weakness Yes N
620660 2022-004 Material Weakness Yes L
620661 2022-005 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.041 Impact Aid $753,874 Yes 0
84.010 Title I Grants to Local Educational Agencies $191,812 - 0
84.425 Education Stabilization Fund $182,835 - 0
10.555 National School Lunch Program $32,988 - 0
10.553 School Breakfast Program $12,546 - 0
84.367 Improving Teacher Quality State Grants $4,849 - 0
84.424 Student Support and Academic Enrichment Program $4,753 - 0
10.582 Fresh Fruit and Vegetable Program $3,025 - 0
84.358 Rural Education $1,488 - 0
10.560 State Administrative Expenses for Child Nutrition $725 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
FXQWHM5A1XY3 Maria Dunlap Auditee
7017982091 Heath Erickson Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION / ACCOUNTING Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E of the Uniform Guidance, wherein certain types of expenditures are allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Oberon Public School District under programs of the federal government for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Oberon Public School District, it is not intended to and does not present the financial position or changes in net position of the Oberon Public School District. Expenditures represent only the federally funded portions of the program. School District records should be consulted to determine amounts expended or matched from non-federal sources.
Title: NOTE 3 NON-CASH AWARDS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E of the Uniform Guidance, wherein certain types of expenditures are allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amount of commodities reported on the schedule is the value of the supplemental food program distributed by the district during the year as priced by the North Dakota Department of Public Instruction.
Title: NOTE 4 PASS-THROUGH GRANT NUMBER Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E of the Uniform Guidance, wherein certain types of expenditures are allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For Federal Pass-through programs marked N/A, the Oberon Public School District was unable to obtain a pass-through grant number.

Finding Details

Finding 2022-004
2022-004 IMPACT AID GRANT - IMPACT AID DOCUMENTATION ? ALN 84.041 ? MATERIAL WEAKNESS AND MATERIAL NON-COMPLIANCE FINDING TYPE: Material Weakness ? Material Noncompliance Finding 2022-004 Federal Program: Impact Aid ALN: 84.041 Federal Award Number(s) and Year(s): S041B226254, 2022 Federal Agency: U.S. Department of Education Questioned Cost: $0 Condition Oberon Public School District does not have adequate support documentation for the Impact Aid Grant. Oberon Public School District was unable to substantiate amounts claimed on the 2022 application submitted for the Impact Aid Grant. Unsubstantiated items include children with disabilities who reside on eligible Indian lands and children who reside on eligible Indian lands. Effect Oberon Public School District may have improperly reported application information, which may have resulted in receiving additional Impact Aid Grant money. Cause Oberon Public School District does not have adequate policies and procedures to assign oversight and records retention for the Impact Aid Grant. Criteria ?Standards for Internal Control in the Federal Government? (Green Book) requires management to document in policies for each unit its responsibility for an operational process?s objectives and related risks, and control activity design, implementation, and operating effectiveness. Each unit, with guidance from management, determines the policies necessary to operate the process based on the objectives and related risks for the operational process. Each unit also documents policies in the appropriate level of detail to allow management to effectively monitor the control activity. Part 4 of the 2022 OMB Compliance Supplement, in the reporting section, requires auditors to test the membership data used to support the application. Questioned Costs None. Prior Recommendation Yes. OBERON PUBLIC SCHOOL DISTRICT NO. 16 Schedule of Audit Findings and Questioned Costs ? Continued 46 Recommendation We recommend Oberon Public School District acquire and maintain the proper supporting documentation surrounding the Impact Aid Grant. Oberon Public School District?s Response See Corrective Action Plan.
Finding 2022-005
2022-005 IMPACT AID GRANT - IMPACT AID WAGE RATE REQUIREMENTS ? ALN 84.041 ? MATERIAL WEAKNESS FINDING TYPE: Material Weakness Finding 2022-005 Federal Program: Impact Aid ALN: 84.041 Federal Award Number(s) and Year(s): S041B226254, 2022 Federal Agency: U.S. Department of Education Questioned Cost: $0 Condition Oberon Public School District did not have any procedures in place relating to the internal controls surrounding the Wage Rate Requirements applicable to the Impact Aid Grant funds for the construction of the new school. Effect Oberon Public School increases its risk of noncompliance with the Wage Rate Requirements relating to Impact Aid without proper internal controls. Cause Oberon Public School District was not aware of the Wage Rate Requirements applicable to construction contracts in excess of $2,000 financed by federal assistance funds. Criteria 2 CFR 200.303(a) states that non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Questioned Costs None. Prior Recommendation Yes. Recommendation We recommend Oberon Public School District implement procedures to ensure compliance with the Wage Rate Requirements. Oberon Public School District?s Response See Corrective Action Plan.
Finding 2022-004
2022-004 IMPACT AID GRANT - IMPACT AID DOCUMENTATION ? ALN 84.041 ? MATERIAL WEAKNESS AND MATERIAL NON-COMPLIANCE FINDING TYPE: Material Weakness ? Material Noncompliance Finding 2022-004 Federal Program: Impact Aid ALN: 84.041 Federal Award Number(s) and Year(s): S041B226254, 2022 Federal Agency: U.S. Department of Education Questioned Cost: $0 Condition Oberon Public School District does not have adequate support documentation for the Impact Aid Grant. Oberon Public School District was unable to substantiate amounts claimed on the 2022 application submitted for the Impact Aid Grant. Unsubstantiated items include children with disabilities who reside on eligible Indian lands and children who reside on eligible Indian lands. Effect Oberon Public School District may have improperly reported application information, which may have resulted in receiving additional Impact Aid Grant money. Cause Oberon Public School District does not have adequate policies and procedures to assign oversight and records retention for the Impact Aid Grant. Criteria ?Standards for Internal Control in the Federal Government? (Green Book) requires management to document in policies for each unit its responsibility for an operational process?s objectives and related risks, and control activity design, implementation, and operating effectiveness. Each unit, with guidance from management, determines the policies necessary to operate the process based on the objectives and related risks for the operational process. Each unit also documents policies in the appropriate level of detail to allow management to effectively monitor the control activity. Part 4 of the 2022 OMB Compliance Supplement, in the reporting section, requires auditors to test the membership data used to support the application. Questioned Costs None. Prior Recommendation Yes. OBERON PUBLIC SCHOOL DISTRICT NO. 16 Schedule of Audit Findings and Questioned Costs ? Continued 46 Recommendation We recommend Oberon Public School District acquire and maintain the proper supporting documentation surrounding the Impact Aid Grant. Oberon Public School District?s Response See Corrective Action Plan.
Finding 2022-005
2022-005 IMPACT AID GRANT - IMPACT AID WAGE RATE REQUIREMENTS ? ALN 84.041 ? MATERIAL WEAKNESS FINDING TYPE: Material Weakness Finding 2022-005 Federal Program: Impact Aid ALN: 84.041 Federal Award Number(s) and Year(s): S041B226254, 2022 Federal Agency: U.S. Department of Education Questioned Cost: $0 Condition Oberon Public School District did not have any procedures in place relating to the internal controls surrounding the Wage Rate Requirements applicable to the Impact Aid Grant funds for the construction of the new school. Effect Oberon Public School increases its risk of noncompliance with the Wage Rate Requirements relating to Impact Aid without proper internal controls. Cause Oberon Public School District was not aware of the Wage Rate Requirements applicable to construction contracts in excess of $2,000 financed by federal assistance funds. Criteria 2 CFR 200.303(a) states that non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Questioned Costs None. Prior Recommendation Yes. Recommendation We recommend Oberon Public School District implement procedures to ensure compliance with the Wage Rate Requirements. Oberon Public School District?s Response See Corrective Action Plan.