Audit 845

FY End
2023-06-30
Total Expended
$1.38M
Findings
4
Programs
9
Year: 2023 Accepted: 2023-10-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403 2023-006 Material Weakness Yes P
404 2023-007 Material Weakness - P
576845 2023-006 Material Weakness Yes P
576846 2023-007 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $628,593 Yes 2
84.027 Special Education_grants to States $199,322 - 0
84.010 Title I Grants to Local Educational Agencies $146,754 - 0
84.358 Rural Education $110,514 - 0
10.553 School Breakfast Program $51,923 - 0
93.778 Medical Assistance Program $23,717 - 0
10.555 National School Lunch Program $15,327 - 0
84.173 Special Education_preschool Grants $9,193 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
Y3X9GDBJKKN3 Kevin Blankenship Auditee
2177423175 Suzanne Steckel Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Community Unit School District No. 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Of the federal expenditures presented in the schedule, Community Unit School District No. 1 did not provide any federal awards to subrecipients.
Title: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Community Unit School District No. 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following amounts were expended in the form of non-cash assistance by Community Unit School District No. 1 and should be included in the Schedule of Expenditures of Federal Awards: NON-CASH COMMODITIES (AL 10.555) $7,971; OTHER NON-CASH ASSISTANCE- DEPT. OF DEFENSE FRESH FRUITS AND VEGETABLES (AL 10.555) $15,327. Total non-cash assistance amounts to $23,298.
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Community Unit School District No. 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Commmunity Unit School District No. 1 did not expend any federal awards for insurance coverage, nor did it have any federal loans or loan guarantees in effect at June 30, 2023. Community Unit School District No. 1 did not have federal grants requiring matching expenditures.
Title: Reconciliation of SEFA to Financial Statement Expenditures Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Community Unit School District No. 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Total expenditures per SEFA $1,377,115 LESS $23,298 government-donated commodities not reported in the financial statements LESS $913 Medicaid Administrative Assessment of 4% not reported in the financial statements EQUALS $1,352,904 total federal expenditures per the statements of revenues received, expenditures disbursed, other financing sources (uses), and changes in fund balance.
Title: Reconciliation of "Final Status" Column Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Community Unit School District No. 1 and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 7/1/21-6/30/22 Expenditures per SEFA $880,736 PLUS 7/1/22-6/30/23 Expenditures per SEFA $1,377,115 PLUS 7/1/20-6/30/21 Expenditures Not on SEFA (ESSER, 2021-4998-E2, AL 84.425D) $6,999 EQUALS Final Status Per SEFA $2,264,850

Finding Details

Finding Number: 2023-006. Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in inadequate segregation of duties. Context: The District's accounting function is mainly controlled by one bookkeeper and one administrative assistant. Effect: The limited number of personnel hinders the overall effectiveness of internal controls. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal controls. Recommendation: The District should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial-related information. Management's Response: The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board about their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost-feasible to hire additional personnel.
Finding Number: 2023-007. Criteria or specific requirement: Adequate financial records should be maintained in accordance with 2 CFR 200.302(b)(3). Condition: The District did not maintain adequate financial records in accordance with 2 CFR 200.302(b)(3). Context: Grant expenditures were coded to the incorrect general ledger accounts. Effect: Due to grant expenditures being coded to the incorrect general ledger accounts, adequate financial records were not maintained in accordance with 2 CFR 200.302(b)(3). Cause: Grant expenditures were coded to the incorrect general ledger accounts. This resulted in inadequate financial records. Recommendation: The District should maintain adequate financial records capable of adequately identifying the source and application of grant funds in accordance wtih 2 CFR 200.302(b)(3). Management's Response: The District will work to maintain records capable of adequately identifying the source and application of grant funds.
Finding Number: 2023-006. Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in inadequate segregation of duties. Context: The District's accounting function is mainly controlled by one bookkeeper and one administrative assistant. Effect: The limited number of personnel hinders the overall effectiveness of internal controls. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal controls. Recommendation: The District should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial-related information. Management's Response: The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board about their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost-feasible to hire additional personnel.
Finding Number: 2023-007. Criteria or specific requirement: Adequate financial records should be maintained in accordance with 2 CFR 200.302(b)(3). Condition: The District did not maintain adequate financial records in accordance with 2 CFR 200.302(b)(3). Context: Grant expenditures were coded to the incorrect general ledger accounts. Effect: Due to grant expenditures being coded to the incorrect general ledger accounts, adequate financial records were not maintained in accordance with 2 CFR 200.302(b)(3). Cause: Grant expenditures were coded to the incorrect general ledger accounts. This resulted in inadequate financial records. Recommendation: The District should maintain adequate financial records capable of adequately identifying the source and application of grant funds in accordance wtih 2 CFR 200.302(b)(3). Management's Response: The District will work to maintain records capable of adequately identifying the source and application of grant funds.