Finding 1170368 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-23

AI Summary

  • Core Issue: Management is responsible for preparing accurate financial statements and SEFA, but we assisted in drafting them, which raises concerns about accountability.
  • Impacted Requirements: Compliance with financial reporting standards is essential, and this finding is a repeat from last year, indicating ongoing issues.
  • Recommended Follow-Up: Management should thoroughly review the financial statements and SEFA for accuracy and seek clarification from auditors on any unclear items before finalizing documents.

Finding Text

#2025-001: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Affected: All Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: As a matter of practicality and efficiency, we have assisted in drafting the financial statements and SEFA, in both form and content, based on information provided by management during the audit. Criteria and Effect: Management and those charged with governance are ultimately responsible for preparing and presenting the financial statements and SEFA in accordance with the applicable financial reporting framework. The auditor’s responsibility for the financial statements and SEFA is to express an opinion on them based on the audit evidence obtained. Repeat Finding from Prior Year: Yes, prior year finding #2024-001. Recommendation: Management should review the financial statements and SEFA for accuracy of account balances and context of note disclosures. Management and governance should inquire of the auditors about any balances or disclosures which management does not understand or cannot reconcile to internal records prior to signing the management representation letter. Response/Corrective Action Plan: The School agrees with the above Finding. See Corrective Action Plan.

Corrective Action Plan

Responsible Individuals: Craig Crosswait, Business Manager Corrective Action Plan: Management of the School has reviewed the financial statements and SEFA prepared by Ketel Thorstenson, LLP. The financial statements have been compared and reconciled to the internal records maintained by the School. Management and the School Board have been given adequate opportunity to ask questions regarding the financial statements, SEFA, and note disclosures and have received sufficient responses from the auditors prior to final publication of the audited financial statements and SEFA. Management is satisfied that appropriate actions have been taken to allow them to take responsibility for the financial statements and SEFA. Anticipated Completion Date: Ongoing

Categories

Reporting

Other Findings in this Audit

  • 1170366 2025-001
    Material Weakness Repeat
  • 1170367 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $534,026
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $499,237
84.425 EDUCATION STABILIZATION FUND $242,159
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $152,516
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $66,400
10.553 SCHOOL BREAKFAST PROGRAM $39,661
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $26,686
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $25,397
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $20,151
10.555 NATIONAL SCHOOL LUNCH PROGRAM $15,322
15.227 DISTRIBUTION OF RECEIPTS TO STATE AND LOCAL GOVERNMENTS $12
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $9