Finding 12201 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-09-12
Audit: 16323
Organization: Lyon County School District (NV)

AI Summary

  • Core Issue: An accounting error led to a duplication of expenses in the District's reimbursement request, resulting in an excess payment of $398,578.
  • Impacted Requirements: Reimbursement requests must comply with GAAP, be consistently treated, and adequately documented.
  • Recommended Follow-Up: The District should ensure all reimbursement requests are thoroughly verified for accuracy before submission.

Finding Text

Finding #2022-2 ? Material Weakness ? Requests for Reimbursement (RFR) U.S. DEPARTMENT OF EDUCATION Passed through the Nevada Department of Education ARP ESSER III ? CFDA #84.425U Grant Period: 7/1/20 through 9/30/24 Compliance Requirement: L (Reporting) Condition: An accounting error occurred related to the preparation of the District?s January 26, 2023 Request for Reimbursement (RFR). This error consisted of the duplication of expenses totaling $398,578, which resulted in an excess reimbursement to the District of that amount on March 9, 2023. Criteria: Costs submitted for reimbursement must be in accordance with generally accepted accounting principles (GAAP); be accorded consistent treatment; and, be adequately documented. Cause: While procedures exist for supervisory approval of the District?s submission of Requests for Reimbursement (RFR), the turnover in key positions resulted in difficulties preparing timely and accurate RFRs. Effect: The portion of the reimbursement attributable to the accounting error may be disallowed. Context: The RFR was submitted on January 26, 2023 for expenditures incurred for the period ended June 30, 2022, as follows: Please see Schedule of Findings and Questioned Costs for table. Recommendation: The District should verify the accuracy of all RFRs prior to submission for reimbursement. Additionally, as discussed in Finding 2022-3, the District should comply with the following condition of award: Questioned Cost: $398,578.

Corrective Action Plan

Views of Responsible Officials and Planned Correction Action: The Grants and Business Departments have worked together to create a process with appropriate checks and balances regarding moving expenses across individual grants and major funds. This process will consist of multiple levels of approval and specific documentation. Any entries will be processed in a timely manner and all expenditure reports will be checked for errors monthly. This process will ensure that expenditure reports are accurate at the time they are submitted for reimbursement.

Categories

Questioned Costs Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 12198 2022-003
    Significant Deficiency
  • 12199 2022-003
    Significant Deficiency
  • 12200 2022-003
    Significant Deficiency
  • 12202 2022-003
    Significant Deficiency
  • 588640 2022-003
    Significant Deficiency
  • 588641 2022-003
    Significant Deficiency
  • 588642 2022-003
    Significant Deficiency
  • 588643 2022-002
    Material Weakness
  • 588644 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $5.42M
10.553 School Breakfast Program $1.74M
84.010 Title I Grants to Local Educational Agencies $1.57M
84.287 Twenty-First Century Community Learning Centers $953,120
84.367 Improving Teacher Quality State Grants $237,205
10.555 National School Lunch Program $223,373
10.559 Summer Food Service Program for Children $173,665
84.048 Career and Technical Education -- Basic Grants to States $144,372
84.323 Special Education - State Personnel Development $99,082
84.424 Student Support and Academic Enrichment Program $87,136
84.196 Education for Homeless Children and Youth $61,037
84.173 Special Education_preschool Grants $48,836
84.027 Special Education_grants to States $45,564
84.365 English Language Acquisition State Grants $35,195
84.184 Safe and Drug-Free Schools and Communities_national Programs $5,280
84.011 Migrant Education_state Grant Program $1,026