Audit 55782

FY End
2022-06-30
Total Expended
$1.95M
Findings
12
Programs
10
Organization: Whitehall Public Schools (MT)
Year: 2022 Accepted: 2023-04-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
59778 2022-001 Significant Deficiency - F
59779 2022-001 Significant Deficiency - F
59780 2022-001 Significant Deficiency - F
59781 2022-001 Significant Deficiency - F
59782 2022-001 Significant Deficiency - F
59783 2022-001 Significant Deficiency - F
636220 2022-001 Significant Deficiency - F
636221 2022-001 Significant Deficiency - F
636222 2022-001 Significant Deficiency - F
636223 2022-001 Significant Deficiency - F
636224 2022-001 Significant Deficiency - F
636225 2022-001 Significant Deficiency - F

Contacts

Name Title Type
YMKAFXY2ZQ31 Patti Drake Auditee
4062873455 Debbie Ouellette Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) included the federal award activity of the Whitehall Public Schools under programs of the federal government for the year ended June 30, 2022. 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.
Financial Statement and Federal Awards Finding Finding # 2022-001 ? Fixed Asset Accounting Criteria: Fixed asset accounting is required by generally accepted accounting principles because it provides control over safeguarding a significantly valuable investment and reporting accurate data on financial reports. Accountability is required for fixed assets acquired with federal grant awards. Condition: There were multiple instances where fixed asset acquisition or construction were not recorded into the financial records by using the appropriate capital outlay expenditure and object codes per the Montana School Accounting Manual. There were also instances where expenditures were coded into capital outlay objects when those expenditures did not meet the capitalization policy of $5,000. Adjustments were made to the audited financial statements to correct the recording of fixed assets. Effect: GAAP requires that purchases of fixed assets be recorded as capital outlay expenditures in the governmental funds and recorded as fixed assets in the Statement of Net Position. Equipment and property management requirements for grant funds include additional requirements to inventory and monitor assets purchased with grant awards. Federal guidance is that assets are capitalized when the per unit cost exceeds $5,000. Not using the expenditure and object codes defined in the MT School Accounting Manual presents significant risk that fixed assets purchased or constructed during the period might not be appropriately reported and included in fixed asset records or inventoried and monitored in accordance with grant requirements. Cause: Multiple expenditures for the acquisition or construction of District assets were not coded appropriately in the financial records. Recommendation: Expenditures that meet the district?s capitalization policy should be recorded in the appropriate expenditure code and object per the Montana School Accounting Manual. Expenditures below the capitalization policy should not be recorded as capital outlay. Fixed assets purchased with grant funds should be appropriately recorded, inventoried and monitored per grant requirements.