Audit 48796

FY End
2022-06-30
Total Expended
$2.01M
Findings
2
Programs
22
Organization: Chatham School District (AK)
Year: 2022 Accepted: 2022-11-27

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
45352 2022-002 Significant Deficiency - L
621794 2022-002 Significant Deficiency - L

Contacts

Name Title Type
NJZ4GFUKHVB1 Teri Hoover Auditee
9075237235 Karen Tarver Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Basic Financial Statements Accounting Policies: General, The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of Chatham School District (School District). The School District's reporting entity is defined in Note 1 to the School District's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the schedule.Basis of Accounting The accompanying SEFA is presented using the modified-accrual basis of accounting, which is described in Note 1 to the School District's basic financial statements. Such expenditures are recognized following cost principles contained in the Uniform Guidance and OMB Circulars, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following is a reconciliation of federal revenues reported in the School District's basic financial statements to federal expenditures reported in the SEFA: Federal revenues as reported in the basic financial statements $2,052894 Contract revenues reported as federal revenues in the basic financial (385,795) Add: Federal Impact Aid received in prior year and reserved in fund balanceexpended in current year 332,693 Federal revenues reported as other local revenue in the basic financial statements 6,452 Federal share of expenditures as reported in the SEFA $2,006,244

Finding Details

2022-002 Significant Deficiency in Internal Controls over Compliance and Compliance ? Special Reporting Agency: U.S. Department of Education Program(s) and Federal Award Identification Number(s): Impact Aid ALN 84.041 FAIN: S041B220137 New or Repeat: New Criteria: Each year the School District must submit an application for Impact Aid, which provides counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition: The application submitted during fiscal year 2022 was rejected due to the format of data submitted not adhering to instructions. The School District did not resolve documentation issues in a timely manner. Cause: A lack of design or implementation of controls over the application rejection process and failure to update the grantor for changes in the Superintendent position in a timely manner resulted in the rejection notification not being addressed during fiscal year 2022. Context and effect: The application rejection resulted in no funding being approved for fiscal year 2022. Auditor inquiry after year-end identified the need for additional follow up by management related to the rejected application.Questioned costs: None. Recommendation: We recommend that oversight of the Impact Aid program include written procedures over the application process, including a set timeline for addressing communication from the grantor and any follow up required. We further recommend the School District work with its grantor to determine if the issues in the application filed in 2022 can be remedied. View of responsible officials: Management concurs with this finding, see corrective action plan.
2022-002 Significant Deficiency in Internal Controls over Compliance and Compliance ? Special Reporting Agency: U.S. Department of Education Program(s) and Federal Award Identification Number(s): Impact Aid ALN 84.041 FAIN: S041B220137 New or Repeat: New Criteria: Each year the School District must submit an application for Impact Aid, which provides counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition: The application submitted during fiscal year 2022 was rejected due to the format of data submitted not adhering to instructions. The School District did not resolve documentation issues in a timely manner. Cause: A lack of design or implementation of controls over the application rejection process and failure to update the grantor for changes in the Superintendent position in a timely manner resulted in the rejection notification not being addressed during fiscal year 2022. Context and effect: The application rejection resulted in no funding being approved for fiscal year 2022. Auditor inquiry after year-end identified the need for additional follow up by management related to the rejected application.Questioned costs: None. Recommendation: We recommend that oversight of the Impact Aid program include written procedures over the application process, including a set timeline for addressing communication from the grantor and any follow up required. We further recommend the School District work with its grantor to determine if the issues in the application filed in 2022 can be remedied. View of responsible officials: Management concurs with this finding, see corrective action plan.