Audit 46578

FY End
2022-06-30
Total Expended
$7.56M
Findings
2
Programs
15
Year: 2022 Accepted: 2023-02-16
Auditor: Auditor General

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
44543 2022-001 Significant Deficiency - E
620985 2022-001 Significant Deficiency - E

Contacts

Name Title Type
LRD2A1M88C25 Kelly Leavins Auditee
8505479341 Edward Waller, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal award activity of the Holmes County District School Board under programs of the Federal Government for the fiscal 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 District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Noncash Assistance- National School Lunch Program 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. Includes $231,005.44 of donated food received during the fiscal year. Donated foods are valued at fair value as determined at the time of donation.

Finding Details

Finding: The District did not always comply with Federal regulations by properly allocating Title I Program funds to eligible schools. Criteria: Title 34, Section 200.78, Code of Federal Regulations, requires the District to allocate Title I schoolwide program funds to schools identified as eligible and selected to participate, in rank order, on the basis of the total number of children from low-income families in each school. The District is not required to allocate the same per-pupil amount (PPA) to each participating school provided that it allocates higher PPAs to schools with higher concentrations of poverty than to schools with lower concentrations of poverty. Condition: The District annually applies for Title I Program funding and the application includes a budget and an eligibility survey to document the amounts budgeted per participating school. During the 2021-22 fiscal year, the District expended $947,301 from the Title I Program, including $831,456 expended for the District?s six elementary, middle, and high schools. As part of our audit, we requested for examination District records supporting the District?s budget allocation amounts to the six schools and final budget amounts that evidenced the allocations were provided. However, District records indicated that the ranking of three of the District?s six Title I schools did not agree with the ranking based on the total number of students from low-income families. Specifically, District schools with a poverty concentration of 99.20 percent, 90.66 percent, and 84.39 percent were allocated and received $15,032, $18,467 and $4,556, respectively, less than a school with a lower poverty concentration of 77.74 percent. Cause: The District had not established effective procedures for monitoring Title I budgets at participating schools. Effect: The District did not comply with Federal regulations by appropriately allocating Title I Program resources to participating schools in rank order, on the basis of the total number of children from low-income families in each school. As a result, three schools were underallocated $38,055 and educational services were not funded at the required levels. In response to our inquiries, District personnel concurred with the calculated questioned costs. Recommendation: The District should establish procedures for ensuring and documenting that Title I Program resources are properly allocated to schools. In addition, the District should provide documentation to the FDOE supporting the allowability of the questioned costs totaling $38,055 or allocate that amount to the applicable underfunded Title I schools. District Response: The District Federal Programs Coordinator will: 1. Attend professional development activities provided by our Federal Programs Consultant, Dr. Cheryl Sattler with Ethica, LLC. These activities include monthly technical calls, annual Title 1 Bootcamp, and Spring Coordinators? Workshop. 2. Seek help and advice from Dr. Sattler as needed. 3. Attend FASFEPA Conferences, twice per year, to learn about updates and changes to federal laws regarding Title 1 funds. 4. Review the budget entered into the district?s accounting system to ensure there are no discrepancies.
Finding: The District did not always comply with Federal regulations by properly allocating Title I Program funds to eligible schools. Criteria: Title 34, Section 200.78, Code of Federal Regulations, requires the District to allocate Title I schoolwide program funds to schools identified as eligible and selected to participate, in rank order, on the basis of the total number of children from low-income families in each school. The District is not required to allocate the same per-pupil amount (PPA) to each participating school provided that it allocates higher PPAs to schools with higher concentrations of poverty than to schools with lower concentrations of poverty. Condition: The District annually applies for Title I Program funding and the application includes a budget and an eligibility survey to document the amounts budgeted per participating school. During the 2021-22 fiscal year, the District expended $947,301 from the Title I Program, including $831,456 expended for the District?s six elementary, middle, and high schools. As part of our audit, we requested for examination District records supporting the District?s budget allocation amounts to the six schools and final budget amounts that evidenced the allocations were provided. However, District records indicated that the ranking of three of the District?s six Title I schools did not agree with the ranking based on the total number of students from low-income families. Specifically, District schools with a poverty concentration of 99.20 percent, 90.66 percent, and 84.39 percent were allocated and received $15,032, $18,467 and $4,556, respectively, less than a school with a lower poverty concentration of 77.74 percent. Cause: The District had not established effective procedures for monitoring Title I budgets at participating schools. Effect: The District did not comply with Federal regulations by appropriately allocating Title I Program resources to participating schools in rank order, on the basis of the total number of children from low-income families in each school. As a result, three schools were underallocated $38,055 and educational services were not funded at the required levels. In response to our inquiries, District personnel concurred with the calculated questioned costs. Recommendation: The District should establish procedures for ensuring and documenting that Title I Program resources are properly allocated to schools. In addition, the District should provide documentation to the FDOE supporting the allowability of the questioned costs totaling $38,055 or allocate that amount to the applicable underfunded Title I schools. District Response: The District Federal Programs Coordinator will: 1. Attend professional development activities provided by our Federal Programs Consultant, Dr. Cheryl Sattler with Ethica, LLC. These activities include monthly technical calls, annual Title 1 Bootcamp, and Spring Coordinators? Workshop. 2. Seek help and advice from Dr. Sattler as needed. 3. Attend FASFEPA Conferences, twice per year, to learn about updates and changes to federal laws regarding Title 1 funds. 4. Review the budget entered into the district?s accounting system to ensure there are no discrepancies.