Audit 76242

FY End

2022-06-30

Total Expended

$1.86M

Findings

4

Programs

7

Organization: El Paso County School District #22 (CO)

Year: 2022 Accepted: 2023-03-01

Auditor: Hoelting & Company INC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
83025	2022-005	Material Weakness	-	AB
83026	2022-005	Material Weakness	-	AB
659467	2022-005	Material Weakness	-	AB
659468	2022-005	Material Weakness	-	AB

ALN	Program	Spent	Major	Findings
84.425	Education Stabilization Fund	$435,820	Yes	1
84.010	Title I Grants to Local Educational Agencies	$235,580	-	0
10.553	School Breakfast Program	$71,525	-	0
10.555	National School Lunch Program	$43,092	-	0
84.367	Improving Teacher Quality State Grants	$30,001	-	0
10.649	Pandemic Ebt Administrative Costs	$18,447	-	0
84.424	Student Support and Academic Enrichment Program	$11,012	-	0

Contacts

Name	Title	Type
ZWMMGX2LBP29	Christina Vetromile	Auditee
7196832700	Thomas G. Sistare	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified-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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: El Paso County School District #22 has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of El Paso County School District #22 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of El Paso County School District #22, it is not intended to and does not present the financial position, changes in net position, or cash flows of El Paso County School District #22.

Title: Non-Cash Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the modified-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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: El Paso County School District #22 has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year end June 30, 2022, El Paso County School District #22 received $43,092 in non-cash assistance in the form of food commodities. Valuation of commodities is based on fair market value at the time of receipt.

Finding Details

Finding 2022-005

2022-005 Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-federal grant recipient should set reasonable budgets for programs to minimize incentives to miscode expenses. The recipient should compare budgeted and actual allowable costs and investigate variances where applicable. Condition: While the Organization created a budget for overall activities, they did not input the budget into their accounting system or create an outside tool to track actual grant expenditures with the budget. Questioned costs: None noted. Over drawn funds were reclassified to unearned revenue. Context: While performing walkthroughs and other tests of controls it was identified that the district did not create or maintain budget to actual reports for grant awards. Effect: The District drew a material amount of funds prior to incurring the related expenditures. Cause: Controls to ensure budgets are created and utilized are not properly designed or operating effectively. Recommendation: Management should implement procedures that include a creation of a budget for each grant award and track expenses against the budget. Views of responsible officials and planned corrective action: Management agrees with this finding and is working on implementing a budget to actual reporting process.

Finding 2022-005

2022-005 Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-federal grant recipient should set reasonable budgets for programs to minimize incentives to miscode expenses. The recipient should compare budgeted and actual allowable costs and investigate variances where applicable. Condition: While the Organization created a budget for overall activities, they did not input the budget into their accounting system or create an outside tool to track actual grant expenditures with the budget. Questioned costs: None noted. Over drawn funds were reclassified to unearned revenue. Context: While performing walkthroughs and other tests of controls it was identified that the district did not create or maintain budget to actual reports for grant awards. Effect: The District drew a material amount of funds prior to incurring the related expenditures. Cause: Controls to ensure budgets are created and utilized are not properly designed or operating effectively. Recommendation: Management should implement procedures that include a creation of a budget for each grant award and track expenses against the budget. Views of responsible officials and planned corrective action: Management agrees with this finding and is working on implementing a budget to actual reporting process.

Finding 2022-005

2022-005 Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-federal grant recipient should set reasonable budgets for programs to minimize incentives to miscode expenses. The recipient should compare budgeted and actual allowable costs and investigate variances where applicable. Condition: While the Organization created a budget for overall activities, they did not input the budget into their accounting system or create an outside tool to track actual grant expenditures with the budget. Questioned costs: None noted. Over drawn funds were reclassified to unearned revenue. Context: While performing walkthroughs and other tests of controls it was identified that the district did not create or maintain budget to actual reports for grant awards. Effect: The District drew a material amount of funds prior to incurring the related expenditures. Cause: Controls to ensure budgets are created and utilized are not properly designed or operating effectively. Recommendation: Management should implement procedures that include a creation of a budget for each grant award and track expenses against the budget. Views of responsible officials and planned corrective action: Management agrees with this finding and is working on implementing a budget to actual reporting process.

Finding 2022-005

2022-005 Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-federal grant recipient should set reasonable budgets for programs to minimize incentives to miscode expenses. The recipient should compare budgeted and actual allowable costs and investigate variances where applicable. Condition: While the Organization created a budget for overall activities, they did not input the budget into their accounting system or create an outside tool to track actual grant expenditures with the budget. Questioned costs: None noted. Over drawn funds were reclassified to unearned revenue. Context: While performing walkthroughs and other tests of controls it was identified that the district did not create or maintain budget to actual reports for grant awards. Effect: The District drew a material amount of funds prior to incurring the related expenditures. Cause: Controls to ensure budgets are created and utilized are not properly designed or operating effectively. Recommendation: Management should implement procedures that include a creation of a budget for each grant award and track expenses against the budget. Views of responsible officials and planned corrective action: Management agrees with this finding and is working on implementing a budget to actual reporting process.