FAC Explorer

Audit 53320

FY End
2022-06-30
Total Expended
$24.65M
Findings
2
Programs
21
Organization: Watertown School District No. 14-4 (SD)
Year: 2022 Accepted: 2023-01-26
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48190 2022-002 Significant Deficiency - N
624632 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $7.27M Yes 1
84.063 Federal Pell Grant Program $3.15M Yes 0
10.555 National School Lunch Program $1.93M - 0
84.425 Education Stabilization Fund $1.21M Yes 0
84.027 Special Education_grants to States $1.18M - 0
84.048 Career and Technical Education -- Basic Grants to States $649,441 - 0
84.010 Title I Grants to Local Educational Agencies $608,513 - 0
84.038 Perkins Loan Program $385,688 Yes 0
10.553 School Breakfast Program $303,438 - 0
84.367 Improving Teacher Quality State Grants $275,206 - 0
93.575 Child Care and Development Block Grant $120,311 - 0
45.310 Grants to States $102,234 - 0
84.323 Special Education - State Personnel Development $97,546 - 0
21.019 Coronavirus Relief Fund $86,599 - 0
84.424 Student Support and Academic Enrichment Program $75,568 - 0
84.033 Federal Work-Study Program $73,569 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $65,000 Yes 0
16.548 Title V_delinquency Prevention Program $64,845 - 0
84.377 School Improvement Grants $41,150 - 0
84.173 Special Education_preschool Grants $34,055 - 0
10.558 Child and Adult Care Food Program $22,102 - 0

Contacts

Name Title Type
F1Q5JJXS2FA7 Heidi Clausen Auditee
6058826314 Tara Engquist Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported in 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 3 - Indirect Cost Rate The School District has not elected to use the 10% de minimus cost rate. PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 339521. Note 5 - Federal Student Loan Programs The federal student loan programs listed subsequently are administered directly by Lake Area Technical College and balances and transactions relating to these programs are included in the School Districts basic financial statements. No new loans were made during the year. The balance of loans outstanding at June 30, 2022, for the Perkins Loan Program (CFDA # 84.038) was $339,521.
Title: BASIS OF PRESENTATION Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported in 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 3 - Indirect Cost Rate The School District has not elected to use the 10% de minimus cost rate. Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Watertown School District No. 14-4 (the School District) under programs of the federal government for the year ended June 30, 2022. The information 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 School District, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the School District.
Title: FOOD DONATION Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported in 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 3 - Indirect Cost Rate The School District has not elected to use the 10% de minimus cost rate. Note 4 - Food Donation Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. At June 30, 2022, the School District had food commodities totaling $215 in inventory.

Finding Details

Finding 2022-002
2022-002 Department of Education Student Financial Aid Cluster CFDA # 84.268 ? Federal Direct Student Loans 2021-2022 Award Year Special Tests and Provisions ? Return of Title IV Funds Significant Deficiency in Internal Controls over Compliance Criteria: 34 CFR 668.22 sets forth the criteria for timely withdrawal determination requirement for return of Title IV funds. Condition: 1 of 30 students selected for testing had a withdrawal determination date outside of the 30 day requirement. For a student who withdraws without providing notification from a school that is not required to take attendance, the school must determine the withdrawal date no later than 30 days after the end of the earlier of 1) the payment period or the period of enrollment, 2) the academic year, or 3) the student?s educational program. Cause: Student was part of the agriculture program and was intended to finish the semester with an internship. LATC was notified outside of the 30-day requirement by the employer that the internship did not take place. Effect: The error in withdrawal determination resulted in determination dates outside of the required timeframe which will result in return of direct loans outside of the required timeframe. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 30 students with a withdrawal status out of 146 students with a withdrawal status were selected for testing of return of Title IV Funds requirements. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the financial aid and registrar?s offices implement controls to verify intended internships beginning during an in-progress semester have, in fact, started. We also recommend a follow up within 20 days of semester end to ensure internships were completed. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Education Student Financial Aid Cluster CFDA # 84.268 ? Federal Direct Student Loans 2021-2022 Award Year Special Tests and Provisions ? Return of Title IV Funds Significant Deficiency in Internal Controls over Compliance Criteria: 34 CFR 668.22 sets forth the criteria for timely withdrawal determination requirement for return of Title IV funds. Condition: 1 of 30 students selected for testing had a withdrawal determination date outside of the 30 day requirement. For a student who withdraws without providing notification from a school that is not required to take attendance, the school must determine the withdrawal date no later than 30 days after the end of the earlier of 1) the payment period or the period of enrollment, 2) the academic year, or 3) the student?s educational program. Cause: Student was part of the agriculture program and was intended to finish the semester with an internship. LATC was notified outside of the 30-day requirement by the employer that the internship did not take place. Effect: The error in withdrawal determination resulted in determination dates outside of the required timeframe which will result in return of direct loans outside of the required timeframe. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 30 students with a withdrawal status out of 146 students with a withdrawal status were selected for testing of return of Title IV Funds requirements. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the financial aid and registrar?s offices implement controls to verify intended internships beginning during an in-progress semester have, in fact, started. We also recommend a follow up within 20 days of semester end to ensure internships were completed. Views of Responsible Officials: Management agrees with the finding.