FAC Explorer

Audit 5169

FY End
2023-06-30
Total Expended
$2.73M
Findings
4
Programs
11
Organization: Hot Springs County School District #1 (WY)
Year: 2023 Accepted: 2023-12-04
Auditor: Carver Florek & James Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3168 2023-002 Significant Deficiency - P
3169 2023-003 Significant Deficiency - I
579610 2023-002 Significant Deficiency - P
579611 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $366,786 - 0
10.555 National School Lunch Program $230,634 - 0
84.371 Striving Readers $145,947 - 0
84.010 Title I Grants to Local Educational Agencies $91,578 - 0
84.367 Improving Teacher Quality State Grants $74,340 - 0
84.424 Student Support and Academic Enrichment Program $59,543 - 0
84.425 Education Stabilization Fund $37,028 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $22,776 - 0
84.173 Special Education_preschool Grants $3,646 - 0
93.368 21st Century Cures Act - Precision Medicine Initiative $2,228 - 0
84.196 Education for Homeless Children and Youth $1,214 - 0

Contacts

Name Title Type
QU7AFTEKUJK8 Jessica Benefiel Auditee
3078646512 Jason Lund Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Federal program expenditures included in the accompanying schedule are presented 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 reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in normal course of business to amounts reported as expenditures in prior years. The information in the schedule is presented in accordance with requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The District has elected to utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. However, in the current year the District did not recognize any indirect costs for federal grant expenditures. The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes federal grant activity of Hot Springs County School District #1 (the District) under programs of the federal government for the year ended June 30, 2023. The district primarily receives federal awards indirectly through Wyoming Department of Education. The information in this schedule is presented in accordance with requirements of Title 2 US Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of operations of the Districts. It is not intended to and does not present the changes in net assets of the District.
Title: Summary of Significant Accounting Policies Accounting Policies: Federal program expenditures included in the accompanying schedule are presented 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 reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in normal course of business to amounts reported as expenditures in prior years. The information in the schedule is presented in accordance with requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The District has elected to utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. However, in the current year the District did not recognize any indirect costs for federal grant expenditures. Federal program expenditures included in the accompanying schedule are presented 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 reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in normal course of business to amounts reported as expenditures in prior years. The information in the schedule is presented in accordance with requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Title: Indirect Cost Rates Accounting Policies: Federal program expenditures included in the accompanying schedule are presented 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 reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in normal course of business to amounts reported as expenditures in prior years. The information in the schedule is presented in accordance with requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The District has elected to utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. However, in the current year the District did not recognize any indirect costs for federal grant expenditures. The District has elected to utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. However, in the current year the District did not recognize any indirect costs for federal grant expenditures.
Title: Loan / Loan Guarantees Accounting Policies: Federal program expenditures included in the accompanying schedule are presented 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 reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in normal course of business to amounts reported as expenditures in prior years. The information in the schedule is presented in accordance with requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The District has elected to utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. However, in the current year the District did not recognize any indirect costs for federal grant expenditures. There were no loans/loan guarantees.
Title: Other Accounting Policies: Federal program expenditures included in the accompanying schedule are presented 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 reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in normal course of business to amounts reported as expenditures in prior years. The information in the schedule is presented in accordance with requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The District has elected to utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. However, in the current year the District did not recognize any indirect costs for federal grant expenditures. Items with an asterisk (*) on the SEFA are major programs. Non-monetary assistance is reported in the schedule at fair market value of commodities received and disbursed. No Federal Expenditures were passed through to Sub-recipients, the District utilized the funds directly.

Finding Details

Finding 2023-002
2023-002 - Expenditure Controls - Significant Deficiency Compliance Requirement: Allowable Costs and Cost Principles ALN: 84.425 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) 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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our sample testing of 34 transactions for allowable costs and proper internal controls, we noted there was a lack of documentation of internal controls processes in place over compliance. For credit card charges and other expenditures, we found 11 of 34 transactions tested, did not have pre-authorized purchase order approval, prior to the charge. Questioned Costs: None. Cause: Insufficient staffing and training to ensure proper protocols are followed seems to be the main cause of this finding. Effect: Without proper internal controls, there is greater risk of unallowable expenditures being charged to the grant. Allowable costs could be charged to federal awards with reasonable assurance of compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recommendation: We recommend that the District continue to work on implementation of expenditure controls at all school levels before the expenditure is submitted to the accounting department for payment execution.
Finding 2023-003
2023-003 Procurement SAMS.gov - Significant Deficiency ALN: 84.425 Criteria: Uniform Guidance policies, 2 CRF Part 180, states written policies and procedures related to internal controls be written and documented in regard to SAMS.gov vendor verification of debarment and suspension. Cause: The School District does not have internal control Federal written updated policies implementing Debarment and Suspension. Condition: While detail testing found no unallowed costs, without written policies addressing the verification of vendor suspensions or debarment, vendors could be debarred or suspended that are paid under Federal contracts. The School District could not provide documentation that vendors paid - were verified through SAMS.gov for debarment or suspension. Effect: The School District must use funds as required under the Federal Award guidelines under Uniform Guidance to prevent mismanagement of projects funded by Federal Awards. Questioned Costs: None. Recommendation: We recommend that the Board of Trustees and School Officials review Financial Internal Control Policies and ensure that Uniform Guidance policies are incorporated for Federal Grant Expenditures. These policies be reviewed with Federal Grant Award Guidelines.
Finding 2023-002
2023-002 - Expenditure Controls - Significant Deficiency Compliance Requirement: Allowable Costs and Cost Principles ALN: 84.425 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) 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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our sample testing of 34 transactions for allowable costs and proper internal controls, we noted there was a lack of documentation of internal controls processes in place over compliance. For credit card charges and other expenditures, we found 11 of 34 transactions tested, did not have pre-authorized purchase order approval, prior to the charge. Questioned Costs: None. Cause: Insufficient staffing and training to ensure proper protocols are followed seems to be the main cause of this finding. Effect: Without proper internal controls, there is greater risk of unallowable expenditures being charged to the grant. Allowable costs could be charged to federal awards with reasonable assurance of compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recommendation: We recommend that the District continue to work on implementation of expenditure controls at all school levels before the expenditure is submitted to the accounting department for payment execution.
Finding 2023-003
2023-003 Procurement SAMS.gov - Significant Deficiency ALN: 84.425 Criteria: Uniform Guidance policies, 2 CRF Part 180, states written policies and procedures related to internal controls be written and documented in regard to SAMS.gov vendor verification of debarment and suspension. Cause: The School District does not have internal control Federal written updated policies implementing Debarment and Suspension. Condition: While detail testing found no unallowed costs, without written policies addressing the verification of vendor suspensions or debarment, vendors could be debarred or suspended that are paid under Federal contracts. The School District could not provide documentation that vendors paid - were verified through SAMS.gov for debarment or suspension. Effect: The School District must use funds as required under the Federal Award guidelines under Uniform Guidance to prevent mismanagement of projects funded by Federal Awards. Questioned Costs: None. Recommendation: We recommend that the Board of Trustees and School Officials review Financial Internal Control Policies and ensure that Uniform Guidance policies are incorporated for Federal Grant Expenditures. These policies be reviewed with Federal Grant Award Guidelines.