Audit 49377

FY End
2022-06-30
Total Expended
$2.75M
Findings
6
Programs
18
Year: 2022 Accepted: 2023-01-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
46808 2022-004 Material Weakness - B
46809 2022-004 Material Weakness - B
46810 2022-004 Material Weakness - B
623250 2022-004 Material Weakness - B
623251 2022-004 Material Weakness - B
623252 2022-004 Material Weakness - B

Contacts

Name Title Type
N961MF6W4AM7 Steffie Pavey Auditee
2084484439 Brandon Blair Auditor
No contacts on file

Notes to SEFA

Title: Program Costs and Matching Contributions Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of West Bonner County School District No. 83 and is presented on the modified accrual basis of accounting. 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). De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The amounts shown as current year expenditures represent only the federal grant portion of program costs. Entire program costs, including the Districts local matching share, may be more than shown. 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.
Title: Transferability Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of West Bonner County School District No. 83 and is presented on the modified accrual basis of accounting. 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). De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. As allowed by federal regulations, the District elected to transfer various program funds. During 2022, the District expended funds from original grant awards on allowable activities of other grant programs, as follows:Transfer From (Original Award) Transfer To AmountTitle II-A (AL No. 84.367) Title I-A (AL No. 84.010) $ 40,651Title IV-A (AL No. 84.424) Title I-A (AL No. 84.010) 61,504These amounts are reflected in the accompanying Schedule of Expenditures of Federal Awards as expenditures of the original grant award.

Finding Details

Condition - The District does not have formalized or documented procedures related to the accurate tracking, recording, reconciling or oversight of grant programs. In addition, there appears to be a lack of appropriate communication between those administering the grants and those responsible for the financial records. Criteria - Costs charged to federal programs are to be supported by adequate documentation in accordance with guidelines established in the OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as ?Uniform Guidance?). Furthermore, governmental accounting standards require that revenue for expenditure-driven grant programs be recognized when the District meets the eligibility requirements of the grant and the resources are considered to be available, and for the subsequent reimbursement requests to be submitted in a timely manner. When grant funds are received in advance, unearned revenue should be recorded until the costs have been incurred, eligibility requirements are met, or unexpended funds are returned to the granting agency. Effect - In connection with performing our audit testing, as described in other findings, it was discovered that the District struggled to accurately identify the correct expenditure amounts applicable to each grant, which resulted in several reimbursement requests not being submitted on a timely basis. In some instances, adjustments were required in order to properly remove eligible costs from the applicable grants due to the expiration of the available grant award. While there is no evidence that the District submitted requests for ineligible expenditures, it is apparent that the District did not submit for grant funds that they would have been entitled to had the submissions been completed timely. In addition, without adequate procedures in place, grant expenditures and revenue may not be properly identified, which could result in noncompliance with the grant requirements or Uniform Guidance. Cause - Due in part to transition of management, as described in other findings, the District does not have formalized, documented procedures for tracking and recording activity related to grants. In addition, the District did not completely perform all of the procedures that should be performed in order to properly identify eligible grant expenditure amounts for purposes of submitting timely reimbursement requests. Questioned Costs - No known questioned costs were identified during the course of the audit. Recommendation - We recommend that the District develop and implement a comprehensive set of procedures to identify and track federal and state grants. These procedures should include maintaining a schedule of all grants, detailing the source of funding, expenditures incurred and revenues earned on a grant-to-date basis and a year-to-date basis. These procedures should also include documented communication between those administering the grants and those responsible for the financial records. In addition, we recommend that the District appoint an individual with the responsibility of providing compliance oversight, specifically related to the proper recording of grant expenditures and the timely submission of reimbursement requests. The individual can either be an existing employee or an external contractor who possesses sufficient skill, knowledge or experience in understanding Uniform Guidance requirements. Management?s Response - The District will develop and implement documented procedures for recording and communicating information regarding grants. Oversight and the necessary training will be made available on an as-needed basis, in an effort to eliminate audit adjustments and ensure compliance with grant requirements. In addition, the District will develop procedures to ensure that grant draw requests are prepared, reviewed and submitted on a timely basis in accordance with the grant agreements.
Condition - The District does not have formalized or documented procedures related to the accurate tracking, recording, reconciling or oversight of grant programs. In addition, there appears to be a lack of appropriate communication between those administering the grants and those responsible for the financial records. Criteria - Costs charged to federal programs are to be supported by adequate documentation in accordance with guidelines established in the OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as ?Uniform Guidance?). Furthermore, governmental accounting standards require that revenue for expenditure-driven grant programs be recognized when the District meets the eligibility requirements of the grant and the resources are considered to be available, and for the subsequent reimbursement requests to be submitted in a timely manner. When grant funds are received in advance, unearned revenue should be recorded until the costs have been incurred, eligibility requirements are met, or unexpended funds are returned to the granting agency. Effect - In connection with performing our audit testing, as described in other findings, it was discovered that the District struggled to accurately identify the correct expenditure amounts applicable to each grant, which resulted in several reimbursement requests not being submitted on a timely basis. In some instances, adjustments were required in order to properly remove eligible costs from the applicable grants due to the expiration of the available grant award. While there is no evidence that the District submitted requests for ineligible expenditures, it is apparent that the District did not submit for grant funds that they would have been entitled to had the submissions been completed timely. In addition, without adequate procedures in place, grant expenditures and revenue may not be properly identified, which could result in noncompliance with the grant requirements or Uniform Guidance. Cause - Due in part to transition of management, as described in other findings, the District does not have formalized, documented procedures for tracking and recording activity related to grants. In addition, the District did not completely perform all of the procedures that should be performed in order to properly identify eligible grant expenditure amounts for purposes of submitting timely reimbursement requests. Questioned Costs - No known questioned costs were identified during the course of the audit. Recommendation - We recommend that the District develop and implement a comprehensive set of procedures to identify and track federal and state grants. These procedures should include maintaining a schedule of all grants, detailing the source of funding, expenditures incurred and revenues earned on a grant-to-date basis and a year-to-date basis. These procedures should also include documented communication between those administering the grants and those responsible for the financial records. In addition, we recommend that the District appoint an individual with the responsibility of providing compliance oversight, specifically related to the proper recording of grant expenditures and the timely submission of reimbursement requests. The individual can either be an existing employee or an external contractor who possesses sufficient skill, knowledge or experience in understanding Uniform Guidance requirements. Management?s Response - The District will develop and implement documented procedures for recording and communicating information regarding grants. Oversight and the necessary training will be made available on an as-needed basis, in an effort to eliminate audit adjustments and ensure compliance with grant requirements. In addition, the District will develop procedures to ensure that grant draw requests are prepared, reviewed and submitted on a timely basis in accordance with the grant agreements.
Condition - The District does not have formalized or documented procedures related to the accurate tracking, recording, reconciling or oversight of grant programs. In addition, there appears to be a lack of appropriate communication between those administering the grants and those responsible for the financial records. Criteria - Costs charged to federal programs are to be supported by adequate documentation in accordance with guidelines established in the OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as ?Uniform Guidance?). Furthermore, governmental accounting standards require that revenue for expenditure-driven grant programs be recognized when the District meets the eligibility requirements of the grant and the resources are considered to be available, and for the subsequent reimbursement requests to be submitted in a timely manner. When grant funds are received in advance, unearned revenue should be recorded until the costs have been incurred, eligibility requirements are met, or unexpended funds are returned to the granting agency. Effect - In connection with performing our audit testing, as described in other findings, it was discovered that the District struggled to accurately identify the correct expenditure amounts applicable to each grant, which resulted in several reimbursement requests not being submitted on a timely basis. In some instances, adjustments were required in order to properly remove eligible costs from the applicable grants due to the expiration of the available grant award. While there is no evidence that the District submitted requests for ineligible expenditures, it is apparent that the District did not submit for grant funds that they would have been entitled to had the submissions been completed timely. In addition, without adequate procedures in place, grant expenditures and revenue may not be properly identified, which could result in noncompliance with the grant requirements or Uniform Guidance. Cause - Due in part to transition of management, as described in other findings, the District does not have formalized, documented procedures for tracking and recording activity related to grants. In addition, the District did not completely perform all of the procedures that should be performed in order to properly identify eligible grant expenditure amounts for purposes of submitting timely reimbursement requests. Questioned Costs - No known questioned costs were identified during the course of the audit. Recommendation - We recommend that the District develop and implement a comprehensive set of procedures to identify and track federal and state grants. These procedures should include maintaining a schedule of all grants, detailing the source of funding, expenditures incurred and revenues earned on a grant-to-date basis and a year-to-date basis. These procedures should also include documented communication between those administering the grants and those responsible for the financial records. In addition, we recommend that the District appoint an individual with the responsibility of providing compliance oversight, specifically related to the proper recording of grant expenditures and the timely submission of reimbursement requests. The individual can either be an existing employee or an external contractor who possesses sufficient skill, knowledge or experience in understanding Uniform Guidance requirements. Management?s Response - The District will develop and implement documented procedures for recording and communicating information regarding grants. Oversight and the necessary training will be made available on an as-needed basis, in an effort to eliminate audit adjustments and ensure compliance with grant requirements. In addition, the District will develop procedures to ensure that grant draw requests are prepared, reviewed and submitted on a timely basis in accordance with the grant agreements.
Condition - The District does not have formalized or documented procedures related to the accurate tracking, recording, reconciling or oversight of grant programs. In addition, there appears to be a lack of appropriate communication between those administering the grants and those responsible for the financial records. Criteria - Costs charged to federal programs are to be supported by adequate documentation in accordance with guidelines established in the OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as ?Uniform Guidance?). Furthermore, governmental accounting standards require that revenue for expenditure-driven grant programs be recognized when the District meets the eligibility requirements of the grant and the resources are considered to be available, and for the subsequent reimbursement requests to be submitted in a timely manner. When grant funds are received in advance, unearned revenue should be recorded until the costs have been incurred, eligibility requirements are met, or unexpended funds are returned to the granting agency. Effect - In connection with performing our audit testing, as described in other findings, it was discovered that the District struggled to accurately identify the correct expenditure amounts applicable to each grant, which resulted in several reimbursement requests not being submitted on a timely basis. In some instances, adjustments were required in order to properly remove eligible costs from the applicable grants due to the expiration of the available grant award. While there is no evidence that the District submitted requests for ineligible expenditures, it is apparent that the District did not submit for grant funds that they would have been entitled to had the submissions been completed timely. In addition, without adequate procedures in place, grant expenditures and revenue may not be properly identified, which could result in noncompliance with the grant requirements or Uniform Guidance. Cause - Due in part to transition of management, as described in other findings, the District does not have formalized, documented procedures for tracking and recording activity related to grants. In addition, the District did not completely perform all of the procedures that should be performed in order to properly identify eligible grant expenditure amounts for purposes of submitting timely reimbursement requests. Questioned Costs - No known questioned costs were identified during the course of the audit. Recommendation - We recommend that the District develop and implement a comprehensive set of procedures to identify and track federal and state grants. These procedures should include maintaining a schedule of all grants, detailing the source of funding, expenditures incurred and revenues earned on a grant-to-date basis and a year-to-date basis. These procedures should also include documented communication between those administering the grants and those responsible for the financial records. In addition, we recommend that the District appoint an individual with the responsibility of providing compliance oversight, specifically related to the proper recording of grant expenditures and the timely submission of reimbursement requests. The individual can either be an existing employee or an external contractor who possesses sufficient skill, knowledge or experience in understanding Uniform Guidance requirements. Management?s Response - The District will develop and implement documented procedures for recording and communicating information regarding grants. Oversight and the necessary training will be made available on an as-needed basis, in an effort to eliminate audit adjustments and ensure compliance with grant requirements. In addition, the District will develop procedures to ensure that grant draw requests are prepared, reviewed and submitted on a timely basis in accordance with the grant agreements.
Condition - The District does not have formalized or documented procedures related to the accurate tracking, recording, reconciling or oversight of grant programs. In addition, there appears to be a lack of appropriate communication between those administering the grants and those responsible for the financial records. Criteria - Costs charged to federal programs are to be supported by adequate documentation in accordance with guidelines established in the OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as ?Uniform Guidance?). Furthermore, governmental accounting standards require that revenue for expenditure-driven grant programs be recognized when the District meets the eligibility requirements of the grant and the resources are considered to be available, and for the subsequent reimbursement requests to be submitted in a timely manner. When grant funds are received in advance, unearned revenue should be recorded until the costs have been incurred, eligibility requirements are met, or unexpended funds are returned to the granting agency. Effect - In connection with performing our audit testing, as described in other findings, it was discovered that the District struggled to accurately identify the correct expenditure amounts applicable to each grant, which resulted in several reimbursement requests not being submitted on a timely basis. In some instances, adjustments were required in order to properly remove eligible costs from the applicable grants due to the expiration of the available grant award. While there is no evidence that the District submitted requests for ineligible expenditures, it is apparent that the District did not submit for grant funds that they would have been entitled to had the submissions been completed timely. In addition, without adequate procedures in place, grant expenditures and revenue may not be properly identified, which could result in noncompliance with the grant requirements or Uniform Guidance. Cause - Due in part to transition of management, as described in other findings, the District does not have formalized, documented procedures for tracking and recording activity related to grants. In addition, the District did not completely perform all of the procedures that should be performed in order to properly identify eligible grant expenditure amounts for purposes of submitting timely reimbursement requests. Questioned Costs - No known questioned costs were identified during the course of the audit. Recommendation - We recommend that the District develop and implement a comprehensive set of procedures to identify and track federal and state grants. These procedures should include maintaining a schedule of all grants, detailing the source of funding, expenditures incurred and revenues earned on a grant-to-date basis and a year-to-date basis. These procedures should also include documented communication between those administering the grants and those responsible for the financial records. In addition, we recommend that the District appoint an individual with the responsibility of providing compliance oversight, specifically related to the proper recording of grant expenditures and the timely submission of reimbursement requests. The individual can either be an existing employee or an external contractor who possesses sufficient skill, knowledge or experience in understanding Uniform Guidance requirements. Management?s Response - The District will develop and implement documented procedures for recording and communicating information regarding grants. Oversight and the necessary training will be made available on an as-needed basis, in an effort to eliminate audit adjustments and ensure compliance with grant requirements. In addition, the District will develop procedures to ensure that grant draw requests are prepared, reviewed and submitted on a timely basis in accordance with the grant agreements.
Condition - The District does not have formalized or documented procedures related to the accurate tracking, recording, reconciling or oversight of grant programs. In addition, there appears to be a lack of appropriate communication between those administering the grants and those responsible for the financial records. Criteria - Costs charged to federal programs are to be supported by adequate documentation in accordance with guidelines established in the OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as ?Uniform Guidance?). Furthermore, governmental accounting standards require that revenue for expenditure-driven grant programs be recognized when the District meets the eligibility requirements of the grant and the resources are considered to be available, and for the subsequent reimbursement requests to be submitted in a timely manner. When grant funds are received in advance, unearned revenue should be recorded until the costs have been incurred, eligibility requirements are met, or unexpended funds are returned to the granting agency. Effect - In connection with performing our audit testing, as described in other findings, it was discovered that the District struggled to accurately identify the correct expenditure amounts applicable to each grant, which resulted in several reimbursement requests not being submitted on a timely basis. In some instances, adjustments were required in order to properly remove eligible costs from the applicable grants due to the expiration of the available grant award. While there is no evidence that the District submitted requests for ineligible expenditures, it is apparent that the District did not submit for grant funds that they would have been entitled to had the submissions been completed timely. In addition, without adequate procedures in place, grant expenditures and revenue may not be properly identified, which could result in noncompliance with the grant requirements or Uniform Guidance. Cause - Due in part to transition of management, as described in other findings, the District does not have formalized, documented procedures for tracking and recording activity related to grants. In addition, the District did not completely perform all of the procedures that should be performed in order to properly identify eligible grant expenditure amounts for purposes of submitting timely reimbursement requests. Questioned Costs - No known questioned costs were identified during the course of the audit. Recommendation - We recommend that the District develop and implement a comprehensive set of procedures to identify and track federal and state grants. These procedures should include maintaining a schedule of all grants, detailing the source of funding, expenditures incurred and revenues earned on a grant-to-date basis and a year-to-date basis. These procedures should also include documented communication between those administering the grants and those responsible for the financial records. In addition, we recommend that the District appoint an individual with the responsibility of providing compliance oversight, specifically related to the proper recording of grant expenditures and the timely submission of reimbursement requests. The individual can either be an existing employee or an external contractor who possesses sufficient skill, knowledge or experience in understanding Uniform Guidance requirements. Management?s Response - The District will develop and implement documented procedures for recording and communicating information regarding grants. Oversight and the necessary training will be made available on an as-needed basis, in an effort to eliminate audit adjustments and ensure compliance with grant requirements. In addition, the District will develop procedures to ensure that grant draw requests are prepared, reviewed and submitted on a timely basis in accordance with the grant agreements.