FAC Explorer

Finding 1153282 (2023-005)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2025-09-17
Audit: 366468
Organization: Dixon School District 9 (MT)
Auditor: Nicole M Noonan CPA PC

AI Summary

  • Core Issue: The District failed to include the funding source for federally funded equipment in their capital asset depreciation schedule.
  • Impacted Requirements: Federal regulations require that funding sources be documented to ensure compliance when selling federally funded assets.
  • Recommended Follow-Up: Update the capital asset depreciation schedule to include funding sources for future purchases and review past assets for compliance.

Finding Text

2023-005 Funding Source in Property Records (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Equipment and real property improvements funded with federal grants are required to include the funding source in the property records. This is to ensure the federal government is properly compensated for property that is sold. Condition: The District did not include the source of funding on their capital asset depreciation schedule. Cause: The District did not realize this information was required to be included on the capital asset depreciation schedule. Effect: If the equipment or property was sold, the District may not realize the additional requirements for federally funded items. Context: The District did not sell any federally funded capital assets in fiscal years 2022 or 2023. The District does not generally sell capital assets until their useful life has been exhausted. Repeat Finding: No. Recommendations: When federal grant funds are utilized for equipment and real property improvements, the funding source should be included on the capital asset depreciation schedule so if the asset is sold any additional requirements can be met. Views of Responsible Officials: The District will include the funding source on the capital asset depreciation schedule on future purchases. The District will make efforts to identify prior funding sources on prior capital assets and add that information to the capital asset depreciation schedule.

Corrective Action Plan

Corrective Action Planned: The business office will train new and existing staff to include the funding source on the capital asset depreciation schedule. Action has been taken to add columns to the spreadsheet with the capital assets depreciation schedule to note the funding sources for newly acquired items. Effort will be made in the next month to locate the funding sources for assets already listed on the schedule. Person responsible for corrective action: District Clerk, Breezy Stipe

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment Material Weakness

Other Findings in this Audit

  • 1153275 2023-004
    Material Weakness Repeat
  • 1153276 2023-005
    Material Weakness Repeat
  • 1153277 2023-004
    Material Weakness Repeat
  • 1153278 2023-005
    Material Weakness Repeat
  • 1153279 2023-004
    Material Weakness Repeat
  • 1153280 2023-005
    Material Weakness Repeat
  • 1153281 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $326,731
84.041 Impact Aid $242,736
84.010 Title I Grants to Local Educational Agencies $89,959
10.553 School Breakfast Program $18,629
84.060 Indian Education Grants to Local Educational Agencies $11,368
84.424 Student Support and Academic Enrichment Program $10,000
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $7,944
84.027 Special Education Grants to States $7,204
84.415 Indian Education National Activities (state Tribal Education Partnership (step) and Native American Language (nal) $5,379
10.555 National School Lunch Program $5,292
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $4,674
10.582 Fresh Fruit and Vegetable Program $3,857
84.358 Rural Education $2,448
10.559 Summer Food Service Program for Children $1,420