FAC Explorer

Audit 7557

FY End
2023-06-30
Total Expended
$2.96M
Findings
2
Programs
16
Organization: Buhl Joint School District #412 (ID)
Year: 2023 Accepted: 2023-12-19
Auditor: R Michael Burr CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
5641 2023-003 Material Weakness - B
582083 2023-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.18M Yes 1
84.010 Title I Grants to Local Educational Agencies $424,747 Yes 0
10.555 National School Lunch Program - Cash $304,572 - 0
10.553 School Breakfast Program $183,368 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $141,050 - 0
84.367 Improving Teacher Quality State Grants $69,794 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $65,571 - 0
84.048A Career and Technical Education -- Basic Grants to States $57,667 - 0
84.027 Special Education_grants to States $51,733 - 0
10.582 Fresh Fruit and Vegetable Program $44,522 - 0
10.555 National School Lunch Program - Commodities $40,688 - 0
84.011 Migrant Education_state Grant Program $34,019 - 0
84.424 Student Support and Academic Enrichment Program $27,364 - 0
84.365 English Language Acquisition State Grants $27,192 - 0
84.173 Special Education_preschool Grants $14,018 - 0
10.666 Federal Forest $225 - 0

Contacts

Name Title Type
QNS1HPNBK655 Krista Newton Auditee
2085436436 Mike Burr Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs were applied. Direct cost used all of the grant funds. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Buhl Joint School District No. 412 under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Buhl Joint School District No. 412, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Buhl Joint School District No. 412.
Title: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs were applied. Direct cost used all of the grant funds. Expenditures reported on the Schedule are reported on the accrual 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: PASS-THROUGH NUMBER Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs were applied. Direct cost used all of the grant funds. Grant revenue is passed through the Idaho State Department of Education. The department has assigned no pass-through number. The State fund number is 0348.
Title: FOOD DISTRIBUTION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs were applied. Direct cost used all of the grant funds. Non-monetary assistance is reported in the schedule at the fair market value of the commodities received and used.
Title: EXPENDITURES TO SUB-RECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs were applied. Direct cost used all of the grant funds. The District receives federal funds passed-through the Sate of Idaho for the "Vocational Education Basic Grants to States", CFDA 84.048A. The District spends some of these funds for itself and passes some through to other school districts. The amounts and districts are as follows: Hansen School District #415 $7,056.74, Castleford School District #417 $5,974.69, and Kimberly School District #414 $21,054.78 for a toal of $34,086.21.

Finding Details

Finding 2023-003
2023-003 Check Issued for a Materially Misstated Amount Statement of Condition: A check for $5,872.00 was incorrectly written and sent to the vendor for $58,720.00. Criteria: Checks should be written for the amount of the invoice and approved prior to mailing. Cause: New personnel did not follow proper internal controls in place and failed to compare the check written to the actual invoice prior to mailing. Effect: The effect could be misappropriation of funds with the refund of the excess amount, non-compliance with grant requirements, or misappropriation of funds by the vendor. Questioned Costs: The amount of questioned costs is $52,848. Perspective Information: This is a new issue that will not happen again with proper training. Identification of Repeat Findings: This appears to be an isolated instance. Recommendation: Follow internal controls already in place, double check work prior to finalizing, and provide education to the personnel on the proper procedures and internal controls. Views of Responsible Official and Planned Corrective Actions: We concur with the recommendation. Also, we believe that this was an isolated occurrence and personnel changes have been made. 2023-003 Check Issued for a Materially Misstated Amount Elementary and Secondary School Emergency Relief Assistance Listing No. 84.425U (Covid Grant) Material Weakness: As discussed at Finding 2023-003, a check for $5,872.00 was incorrectly written and sent to the vendor for $58,720.00. Item was discovered through the audit process and was corrected with the incorrect check being voided and a check for the correct amount being reissued. Since it was discovered through the audit, it is not determined if the item would have been discovered by other District personnel through future procedures. Internal control procedures are in place to prevent this but was circumvented by new personnel. Proper training on the internal control procedures should be provided, overseen, and required for all new personnel.
Finding 2023-003
2023-003 Check Issued for a Materially Misstated Amount Statement of Condition: A check for $5,872.00 was incorrectly written and sent to the vendor for $58,720.00. Criteria: Checks should be written for the amount of the invoice and approved prior to mailing. Cause: New personnel did not follow proper internal controls in place and failed to compare the check written to the actual invoice prior to mailing. Effect: The effect could be misappropriation of funds with the refund of the excess amount, non-compliance with grant requirements, or misappropriation of funds by the vendor. Questioned Costs: The amount of questioned costs is $52,848. Perspective Information: This is a new issue that will not happen again with proper training. Identification of Repeat Findings: This appears to be an isolated instance. Recommendation: Follow internal controls already in place, double check work prior to finalizing, and provide education to the personnel on the proper procedures and internal controls. Views of Responsible Official and Planned Corrective Actions: We concur with the recommendation. Also, we believe that this was an isolated occurrence and personnel changes have been made. 2023-003 Check Issued for a Materially Misstated Amount Elementary and Secondary School Emergency Relief Assistance Listing No. 84.425U (Covid Grant) Material Weakness: As discussed at Finding 2023-003, a check for $5,872.00 was incorrectly written and sent to the vendor for $58,720.00. Item was discovered through the audit process and was corrected with the incorrect check being voided and a check for the correct amount being reissued. Since it was discovered through the audit, it is not determined if the item would have been discovered by other District personnel through future procedures. Internal control procedures are in place to prevent this but was circumvented by new personnel. Proper training on the internal control procedures should be provided, overseen, and required for all new personnel.