Audit 53506

FY End
2022-06-30
Total Expended
$11.34M
Findings
8
Programs
24
Organization: Sandusky City School District (OH)
Year: 2022 Accepted: 2023-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
47205 2022-002 Material Weakness - L
47206 2022-002 Material Weakness - L
47207 2022-001 Significant Deficiency Yes N
47208 2022-001 Significant Deficiency Yes N
623647 2022-002 Material Weakness - L
623648 2022-002 Material Weakness - L
623649 2022-001 Significant Deficiency Yes N
623650 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.425 Covid-19 Esser II $2.51M Yes 0
84.425 Covid-19 Esser III $1.83M Yes 0
84.010 Title I Grants to Local Educational Agencies $1.51M Yes 0
10.555 National School Lunch Program $1.19M - 0
84.027 Idea-B $1.01M - 0
84.268 Federal Direct Student Loans $588,950 Yes 1
84.425 Education Stabilization Fund $581,996 Yes 1
10.553 School Breakfast Program $408,221 - 0
84.063 Federal Pell Grant Program $350,510 Yes 1
84.425 Covid-19 Education Stabilization Fund $216,000 Yes 1
84.424 Title IV-A - Student Support and Academic Enrichment $207,577 - 0
84.367 Title II-A Improving Teacher Quality $169,653 - 0
10.555 Covid-19 National School Lunch Program $125,015 - 0
84.002 Adult Education - Basic Grants to States $109,898 - 0
84.027 Covid-19 - Idea-B $89,350 - 0
84.048 Career and Technical Education -- Basic Grants to States $55,114 - 0
84.173 Preschool Grants $50,014 - 0
21.019 Covid-19 Crf - Broadband Ohio Connectivity Grant $39,061 - 0
10.558 Child and Adult Care Food Program $36,212 - 0
84.425 Covid-19 Esser I $28,299 Yes 0
45.310 Library Services Tech $25,598 - 0
84.358 Title V-B Rural and Low Income $24,346 - 0
84.425 Covid-19 Esser Homeless Round II $16,490 Yes 0
84.173 Covid-19 Preschool Grants $2,476 - 0

Contacts

Name Title Type
HLZMDB2M7E83 Yvonne Anderson Auditee
4199841005 Chad Gorfido Auditor
No contacts on file

Notes to SEFA

Title: NOTE A BASIS OF PRESENTATION Accounting Policies: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Sandusky City School District (the School District) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 cash flows of the School District.
Title: NOTE D - CHILD NUTRITION CLUSTER Accounting Policies: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the School District assumes it expends federal monies first.
Title: NOTE E FOOD DONATION PROGRAM Accounting Policies: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District reports commodities consumed on the Schedule at the entitlement value. The School District allocated donated food commodities to the respective programs that benefitted from the use of those donated food commodities.
Title: NOTE F - FEDERAL DIRECT LOAN PROGRAM Accounting Policies: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District participates in the William D. Ford Federal Direct Loan Program. The School District originates the loans which are then funded through the U.S. Department of Education.Federal Subsidized Loans$ 210,434Federal Unsubsidized Loans 378,516Total Federal Direct Student Loans$ 588,950

Finding Details

Finding Number: 2022-002 Federal Program: Higher Education Emergency Relief Fund Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.425F & 84.425E Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: No Material Weakness & Material Noncompliance ? Reporting Criteria: The U.S. Department of Education (ED) requires all Higher Education Emergency Relief Fund (HEERF) to annually report how HEERF funds were utilized. ED developed the HEERF Data Collection Form that institutions must have used to satisfy the annual reporting requirement for HEERF I. This form collects information about how the school used its CARES Act Section 18004(a)(1), (a)(2), and (a)(3) HEERF I funds. The form was required to be submitted to ED via the Annual Report Data Collection System between April 11, 2022 and May 6, 2022 and applied to the reporting period from January 1, 2021 through December 31, 2021. Additionally, the CARES, CRRSAA, and ARP institutional quarterly portion reporting requirements involve publicly posting completed forms on the District's website. The forms must be conspicuously posted on the District's primary website on the same page the reports of the Institution of Higher Education?s (IHEs) activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. IHEs must post this quarterly report form no later than 10 days after the end of each calendar quarter (September 30, December 31, March 31, and June 30). Condition: The School District did not include $345,437 of institutional expenditures in the 2021 annual report submitted to ED. The original reporting for the quarterly report were posted timely; however, original reports were determined to be inaccurate and had to be revised after the required due dates and reposted to reflect the corrections. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: While reviewing the annual report for accurate information, noted the institutional expenditures did not agree to the School District?s expenditure ledgers. The original quarterly reports posted to the School District?s website were not accurate. Subsequent revisions were required after the due date for all four quarters and corrected reports were reposted.Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for the annual and quarterly reporting. The School District did not have procedures in place to ensure that accurate information was included in the annual and quarterly reports. Failure to have procedures in place to complete annual and quarterly reporting requirements accurately may result in the School District being in non-compliance. Recommendation: The School should implement controls and processes to ensure that accurate information is reported on the quarterly and annual reports as required by the grant agreement. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2022-002 Federal Program: Higher Education Emergency Relief Fund Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.425F & 84.425E Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: No Material Weakness & Material Noncompliance ? Reporting Criteria: The U.S. Department of Education (ED) requires all Higher Education Emergency Relief Fund (HEERF) to annually report how HEERF funds were utilized. ED developed the HEERF Data Collection Form that institutions must have used to satisfy the annual reporting requirement for HEERF I. This form collects information about how the school used its CARES Act Section 18004(a)(1), (a)(2), and (a)(3) HEERF I funds. The form was required to be submitted to ED via the Annual Report Data Collection System between April 11, 2022 and May 6, 2022 and applied to the reporting period from January 1, 2021 through December 31, 2021. Additionally, the CARES, CRRSAA, and ARP institutional quarterly portion reporting requirements involve publicly posting completed forms on the District's website. The forms must be conspicuously posted on the District's primary website on the same page the reports of the Institution of Higher Education?s (IHEs) activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. IHEs must post this quarterly report form no later than 10 days after the end of each calendar quarter (September 30, December 31, March 31, and June 30). Condition: The School District did not include $345,437 of institutional expenditures in the 2021 annual report submitted to ED. The original reporting for the quarterly report were posted timely; however, original reports were determined to be inaccurate and had to be revised after the required due dates and reposted to reflect the corrections. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: While reviewing the annual report for accurate information, noted the institutional expenditures did not agree to the School District?s expenditure ledgers. The original quarterly reports posted to the School District?s website were not accurate. Subsequent revisions were required after the due date for all four quarters and corrected reports were reposted.Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for the annual and quarterly reporting. The School District did not have procedures in place to ensure that accurate information was included in the annual and quarterly reports. Failure to have procedures in place to complete annual and quarterly reporting requirements accurately may result in the School District being in non-compliance. Recommendation: The School should implement controls and processes to ensure that accurate information is reported on the quarterly and annual reports as required by the grant agreement. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2022-001 Federal Program: Student Financial Assistance Cluster Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.063 and 84.268 Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: Yes ? 2021-001 Significant Deficiency & Noncompliance ? Special Tests and Provisions - Enrollment Reporting Criteria: Federal Pell Grant Program?An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans?Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a updated enrollment roster report sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Updated enrollment roster reports are required to be returned to NSLDS within 15 days of receiving the enrollment roster file from the Department of Education. Condition: The School District did not provide updated enrollment reporting roster files to NSLDS within the required 15 day timeframe for 2 of the 6 enrollment roster files received in fiscal year 2022. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Of the 6 enrollment reporting roster files received by the School District, 2 were not updated and returned within the required timeframe. Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for enrollment reporting. The School District did not have procedures in place to ensure that changes in students' statuses were being monitored and reported timely to NSLDS. Without proper controls to ensure that changes in students' statuses are reported timely, there is a risk that the School District's records and NSLDS' records may not match and that improper financial aid could be awarded in the future. Recommendation: The School should implement controls and processes to ensure that enrollment reporting changes are monitored and submitted in a timely manner to NSLDS. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2022-001 Federal Program: Student Financial Assistance Cluster Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.063 and 84.268 Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: Yes ? 2021-001 Significant Deficiency & Noncompliance ? Special Tests and Provisions - Enrollment Reporting Criteria: Federal Pell Grant Program?An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans?Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a updated enrollment roster report sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Updated enrollment roster reports are required to be returned to NSLDS within 15 days of receiving the enrollment roster file from the Department of Education. Condition: The School District did not provide updated enrollment reporting roster files to NSLDS within the required 15 day timeframe for 2 of the 6 enrollment roster files received in fiscal year 2022. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Of the 6 enrollment reporting roster files received by the School District, 2 were not updated and returned within the required timeframe. Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for enrollment reporting. The School District did not have procedures in place to ensure that changes in students' statuses were being monitored and reported timely to NSLDS. Without proper controls to ensure that changes in students' statuses are reported timely, there is a risk that the School District's records and NSLDS' records may not match and that improper financial aid could be awarded in the future. Recommendation: The School should implement controls and processes to ensure that enrollment reporting changes are monitored and submitted in a timely manner to NSLDS. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2022-002 Federal Program: Higher Education Emergency Relief Fund Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.425F & 84.425E Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: No Material Weakness & Material Noncompliance ? Reporting Criteria: The U.S. Department of Education (ED) requires all Higher Education Emergency Relief Fund (HEERF) to annually report how HEERF funds were utilized. ED developed the HEERF Data Collection Form that institutions must have used to satisfy the annual reporting requirement for HEERF I. This form collects information about how the school used its CARES Act Section 18004(a)(1), (a)(2), and (a)(3) HEERF I funds. The form was required to be submitted to ED via the Annual Report Data Collection System between April 11, 2022 and May 6, 2022 and applied to the reporting period from January 1, 2021 through December 31, 2021. Additionally, the CARES, CRRSAA, and ARP institutional quarterly portion reporting requirements involve publicly posting completed forms on the District's website. The forms must be conspicuously posted on the District's primary website on the same page the reports of the Institution of Higher Education?s (IHEs) activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. IHEs must post this quarterly report form no later than 10 days after the end of each calendar quarter (September 30, December 31, March 31, and June 30). Condition: The School District did not include $345,437 of institutional expenditures in the 2021 annual report submitted to ED. The original reporting for the quarterly report were posted timely; however, original reports were determined to be inaccurate and had to be revised after the required due dates and reposted to reflect the corrections. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: While reviewing the annual report for accurate information, noted the institutional expenditures did not agree to the School District?s expenditure ledgers. The original quarterly reports posted to the School District?s website were not accurate. Subsequent revisions were required after the due date for all four quarters and corrected reports were reposted.Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for the annual and quarterly reporting. The School District did not have procedures in place to ensure that accurate information was included in the annual and quarterly reports. Failure to have procedures in place to complete annual and quarterly reporting requirements accurately may result in the School District being in non-compliance. Recommendation: The School should implement controls and processes to ensure that accurate information is reported on the quarterly and annual reports as required by the grant agreement. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2022-002 Federal Program: Higher Education Emergency Relief Fund Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.425F & 84.425E Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: No Material Weakness & Material Noncompliance ? Reporting Criteria: The U.S. Department of Education (ED) requires all Higher Education Emergency Relief Fund (HEERF) to annually report how HEERF funds were utilized. ED developed the HEERF Data Collection Form that institutions must have used to satisfy the annual reporting requirement for HEERF I. This form collects information about how the school used its CARES Act Section 18004(a)(1), (a)(2), and (a)(3) HEERF I funds. The form was required to be submitted to ED via the Annual Report Data Collection System between April 11, 2022 and May 6, 2022 and applied to the reporting period from January 1, 2021 through December 31, 2021. Additionally, the CARES, CRRSAA, and ARP institutional quarterly portion reporting requirements involve publicly posting completed forms on the District's website. The forms must be conspicuously posted on the District's primary website on the same page the reports of the Institution of Higher Education?s (IHEs) activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. IHEs must post this quarterly report form no later than 10 days after the end of each calendar quarter (September 30, December 31, March 31, and June 30). Condition: The School District did not include $345,437 of institutional expenditures in the 2021 annual report submitted to ED. The original reporting for the quarterly report were posted timely; however, original reports were determined to be inaccurate and had to be revised after the required due dates and reposted to reflect the corrections. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: While reviewing the annual report for accurate information, noted the institutional expenditures did not agree to the School District?s expenditure ledgers. The original quarterly reports posted to the School District?s website were not accurate. Subsequent revisions were required after the due date for all four quarters and corrected reports were reposted.Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for the annual and quarterly reporting. The School District did not have procedures in place to ensure that accurate information was included in the annual and quarterly reports. Failure to have procedures in place to complete annual and quarterly reporting requirements accurately may result in the School District being in non-compliance. Recommendation: The School should implement controls and processes to ensure that accurate information is reported on the quarterly and annual reports as required by the grant agreement. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2022-001 Federal Program: Student Financial Assistance Cluster Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.063 and 84.268 Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: Yes ? 2021-001 Significant Deficiency & Noncompliance ? Special Tests and Provisions - Enrollment Reporting Criteria: Federal Pell Grant Program?An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans?Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a updated enrollment roster report sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Updated enrollment roster reports are required to be returned to NSLDS within 15 days of receiving the enrollment roster file from the Department of Education. Condition: The School District did not provide updated enrollment reporting roster files to NSLDS within the required 15 day timeframe for 2 of the 6 enrollment roster files received in fiscal year 2022. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Of the 6 enrollment reporting roster files received by the School District, 2 were not updated and returned within the required timeframe. Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for enrollment reporting. The School District did not have procedures in place to ensure that changes in students' statuses were being monitored and reported timely to NSLDS. Without proper controls to ensure that changes in students' statuses are reported timely, there is a risk that the School District's records and NSLDS' records may not match and that improper financial aid could be awarded in the future. Recommendation: The School should implement controls and processes to ensure that enrollment reporting changes are monitored and submitted in a timely manner to NSLDS. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.
Finding Number: 2022-001 Federal Program: Student Financial Assistance Cluster Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.063 and 84.268 Federal Agency: U.S. Department of Education Pass-through Entity: None Repeat Finding: Yes ? 2021-001 Significant Deficiency & Noncompliance ? Special Tests and Provisions - Enrollment Reporting Criteria: Federal Pell Grant Program?An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans?Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a updated enrollment roster report sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Updated enrollment roster reports are required to be returned to NSLDS within 15 days of receiving the enrollment roster file from the Department of Education. Condition: The School District did not provide updated enrollment reporting roster files to NSLDS within the required 15 day timeframe for 2 of the 6 enrollment roster files received in fiscal year 2022. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Of the 6 enrollment reporting roster files received by the School District, 2 were not updated and returned within the required timeframe. Cause and Effect: There was significant turnover in management within the financial aid department. This caused confusion regarding procedures and responsibilities within the department, including the specific timing and requirements for enrollment reporting. The School District did not have procedures in place to ensure that changes in students' statuses were being monitored and reported timely to NSLDS. Without proper controls to ensure that changes in students' statuses are reported timely, there is a risk that the School District's records and NSLDS' records may not match and that improper financial aid could be awarded in the future. Recommendation: The School should implement controls and processes to ensure that enrollment reporting changes are monitored and submitted in a timely manner to NSLDS. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.