FAC Explorer

Audit 86360

FY End
2022-06-30
Total Expended
$1.96M
Findings
4
Programs
9
Organization: Clarion-Limestone Area School District (PA)
Year: 2022 Accepted: 2023-03-23
Auditor: Brooks & Rhoads CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
94095 2022-003 Material Weakness Yes F
94096 2022-002 Material Weakness Yes F
670537 2022-003 Material Weakness Yes F
670538 2022-002 Material Weakness Yes F

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $256,302 - 0
10.553 School Breakfast Program $99,149 - 0
84.367 Improving Teacher Quality State Grants $35,997 - 0
84.424 Student Support and Academic Enrichment Program $15,467 - 0
10.555 National School Lunch Program $3,108 - 0
84.173 Special Education_preschool Grants $2,652 - 0
84.027 Special Education_grants to States $2,000 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0
84.425 Education Stabilization Fund $213 Yes 0

Contacts

Name Title Type
R54ZJ4DXGPG5 Colette Vickers Auditee
8147645111 Melissa Kemmer-Daugherty Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 - PROGRAM DISCLOSURES Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Clarion-Limestone Area School District programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirement 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 Clarion-Limestone Area School District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Clarion-Limestone Area School District.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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, where in 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. Food Distribution Donated Commodities Donated foods are priced at values provided by the USDA. For the year ended June 30, 2022, Clarion-Limestone Area School District expended $27,683 in donated food commodities, with an ending inventory totaling $610.
Title: NOTE 6 - RECONCILIATION OF REVENUE RECOGNIZED TO FINANCIAL STATEMENTS Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Clarion-Limestone Area School District programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirement 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 Clarion-Limestone Area School District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Clarion-Limestone Area School District.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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, where in 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. A reconciliation of revenues recognized on the Schedule of Expenditures of Federal Awards to the revenue reported on the financial statements follows:A.General FundTotal revenue recognized per the schedule of Expendituresof Federal Awards:U.S. Department of Education$1,422,903U.S. Department of Treasury---U.S. Department of Health and Human Services ---Total Federal Assistance$1,422,903Total Federal Revenues per Fund Financial Statements$1,290,347Add: Federal Revenue from I.U.: Regular IDEA Grant135,166 IDEA Section 619 2,6521,428,165Less: Access Medicaid Reimbursement (5,914)Plus: Title II Prior Year Revenue Deducted 652Total Federal Revenue as Adjusted$ 1,422,903B.Food Service FundTotal revenue recognized per the Schedule of Expendituresof Federal Awards:U.S. Department of Agriculture$ 534,914Total Federal Revenue per Fund Financial Statements$ 535,262Less: Increase in Donated Commodities Inventory (348) $ 534,914

Finding Details

Finding 2022-003
2022-003 Education Stabilization Fund, CFDA No 84.425 Material Weakness: As discussed in Finding 2022-001, a control system to ensure adequate safeguards to prevent loss, damage, or theft of property is required by the Uniform Guidance. As the personnel of the District changed, the controls in place and policies were not being followed due to a lack of staff and adequate training. This situation has been corrected by bringing in outside consultants to formalize policies and procedures and provide additional training.
Finding 2022-002
2022-002 Equipment and Real Property Maintenance ? Education Stabilization Fund CFDA No. 84.425 Criteria: The Uniform Guidance requires non-federal entities other than states to develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of property in accordance with 2 CFR Section 200.313 (d) (3). Condition: We inquired of District personnel regarding the procedures in place, specifically for inventorying and safe guarding of real property and equipment. The procedures put into place after the previous audit were not being followed after the change in personnel in the IT Department. Cause: The lack of procedures for safeguarding equipment caused the District to not be in compliance with 2 CFR Section 200.3 (d) (3) of the Uniform Guidance. Effect: Internal Controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Recommendation: The District has developed a specific set of procedures to ensure the proper inventorying and safeguarding of real property and equipment. We recommend the District adhere to these procedures, and have written policies in place to ensure this is not overlooked in the event of changes in personnel. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and have established written policies and procedures. The District has subsequently identified and maintained these assets to comply with federal property records. Now that the District has written policies in place, this should not occur again.
Finding 2022-003
2022-003 Education Stabilization Fund, CFDA No 84.425 Material Weakness: As discussed in Finding 2022-001, a control system to ensure adequate safeguards to prevent loss, damage, or theft of property is required by the Uniform Guidance. As the personnel of the District changed, the controls in place and policies were not being followed due to a lack of staff and adequate training. This situation has been corrected by bringing in outside consultants to formalize policies and procedures and provide additional training.
Finding 2022-002
2022-002 Equipment and Real Property Maintenance ? Education Stabilization Fund CFDA No. 84.425 Criteria: The Uniform Guidance requires non-federal entities other than states to develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of property in accordance with 2 CFR Section 200.313 (d) (3). Condition: We inquired of District personnel regarding the procedures in place, specifically for inventorying and safe guarding of real property and equipment. The procedures put into place after the previous audit were not being followed after the change in personnel in the IT Department. Cause: The lack of procedures for safeguarding equipment caused the District to not be in compliance with 2 CFR Section 200.3 (d) (3) of the Uniform Guidance. Effect: Internal Controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Recommendation: The District has developed a specific set of procedures to ensure the proper inventorying and safeguarding of real property and equipment. We recommend the District adhere to these procedures, and have written policies in place to ensure this is not overlooked in the event of changes in personnel. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and have established written policies and procedures. The District has subsequently identified and maintained these assets to comply with federal property records. Now that the District has written policies in place, this should not occur again.