2025-003: Significant Deficiency, Cut-off Errors in Preparing the SEFA U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425D (COVID-19—Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award years 2023-2025 Criteria: The schedule of expenditures of federal awards (SEFA) is required to be prepared on a basis consistent with the financial statements. Expenditures of federal awards are to be reported on the modified accrual basis of accounting and should be reported on the SEFA when incurred. Condition: The District reported expenditures on the fiscal year 2025 SEFA that were incurred in fiscal year 2024. Therefore, they were not reported on the SEFA in a manner consistent with the fiscal year in which they were reported as expenditures in the financial statements. This resulted in $24,762 of allowable costs reported on the fiscal year 2025 SEFA which were incurred in previous fiscal years. Cause: Inadequate reviews were in place to ensure that expenditures were reported on the SEFA in a manner consistent with the year they were incurred in the financial statements. Effect or potential effect: Inaccurate reporting of expenditures can result in actions taken by oversight agencies, which could impact future funding. Questioned costs: None Context: Approximately $24,762 of the $664,215 total Education Stabilization Funds reported on the fiscal year 2025 SEFA were incurred in a prior fiscal year. Identification as a repeat finding, if applicable: Not a repeat finding. Recommendation: We recommend the District implement procedures to ensure proper cutoff-is achieved in reporting expenditures on the SEFA. View of responsible officials: Management agrees with this finding. Corrective Action: Management is in the process of hiring or procuring an individual or firm with the knowledge, skills, and experience to assist oversite and to serve as additional level of review when needed. Management is also considering changes to current policies and procedures to prevent future incidents. Anticipated Completion Date: June 30, 2026 Contact Person: Dominic Accurso, Controller 816-321-5000 Dominic.accurso@nkcschools.org