FAC Explorer

Finding 366810 (2023-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-02-12
Audit: 289852
Organization: Stanly County Board of Education (NC)
Auditor: Anderson Smith & Wike PLLC

AI Summary

  • Core Issue: The Board held $959,865 in federal funds for over two years, violating program requirements.
  • Impacted Requirements: Federal grant funds must be disbursed within two business days of deposit.
  • Recommended Follow-Up: Implement internal controls to ensure timely disbursement or return of federal funds.

Finding Text

Cash Management – Noncompliance and Material Weakness U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425 Criteria: Under program requirements, federal grant funds must be disbursed within two business days from the date the funds are deposited into the Board’s account. Condition: $959,865 of program funding was held by the Board for over two years. Effect: The Board is not in compliance with federal program requirements. Cause: The Board did not have proper internal controls in place to monitor federal cash balances to ensure federal funds were disbursed or returned to the oversight agency in a timely manner. Questioned costs: None as the funds were held and not expended. Identification of a repeat finding: This is a repeat finding from the previous audit. Recommendation: We recommend that management implement controls so that federal funds are expended or returned to the oversight agency in a timely manner. Management Response: The Board agrees with this finding and recommendation.

Corrective Action Plan

Name of Contact Person: Terry Dudney, Chief Finance Officer Corrective Action Plan: Management will return the excess funds received and implement controls and procedures to ensure that federal funds are expended in a timely manner. Proposed Completion Date: As soon as possible.

Categories

Internal Control / Segregation of Duties Cash Management Material Weakness

Other Findings in this Audit

  • 943252 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Arp - Esser III - K-12 Emergency Relief Fund $3.76M
10.555 National School Lunch Program $2.76M
84.010 Title I Grants to Local Educational Agencies - Educationally Deprived Children $2.13M
84.027 Individuals with Disabilities Education Act - Grants to States $1.86M
84.425 Crrsa - Esser II - K-12 Emergency Relief Fund $1.48M
10.553 School Breakfast Program $879,833
10.555 National School Lunch Program (commodities) $324,189
84.184 School Climate Transformation Grant - Lea Grants $271,601
10.559 Supply Chain Assistance $221,624
84.367 Supporting Effeective Instruction State Grants $166,287
84.048 Basic Grants to States - Program Development $139,060
84.425 Crrsa - Esser II - Learning Loss Funding $139,034
84.027 Arp - Esser III - Grants to States $138,227
84.318 Title II - Educational Technology $128,044
93.994 School Nurse Funding Initiative $100,000
84.425 Arp - Esser III - Cyberbullying & Suicide Prevention Grants $84,827
84.336 Teacher Quality Partnership Grants $80,610
84.425 Cares Act - Esser I - Exceptional Children Grants $66,692
84.425 Crrsa - Esser II - Summer Career Accelerator Program $66,250
10.559 Summer Food Service Program for Children $60,711
84.425 Cares Act - Esser I - Sp. Inst. Supp. Pers. for Covid-19 Resp $55,926
12.000 Jrotc $54,377
84.425 Crrsa - Esser II - Supp. Contracted Inst. Support Funding $53,762
84.425 Crrsa - Esser II - Competency-Based Assessment $45,035
84.173 Individuals with Disabilities Education Act - Preschool Handicapped $43,069
84.173 Arp - Esser III - Preschool Grants $41,138
84.425 Arp - Esser III - Gaggle Grants $26,523
84.287 21st Century Community Learning Center $24,426
10.555 After School Snack Program $24,011
84.425 Cares Act - Esser I - Digital Curricula $21,662
84.365 English Language Acquisition Grants $18,569
84.425 Arp - Esser III - Principal Retention Supplements $15,585
10.185 Local Food for Schools Cooperative Agreement Program $15,235
84.027 Individuals with Disabilities Education Act - Targeted Assistance $15,233
84.010 Title I - School Improvement Grant $12,245
84.425 Arp - Esser III - Homeless II $8,568
84.425 Arp - Esser III - School Psychologists Grant Program $5,320
10.579 Child Nutrition Equipment $5,229
84.323 Title Vi-B, Education of the Handicapped $4,654
84.425 Arp - Esser III - Homeless I $3,836
84.425 Arp - Esser III - Grants for Id & Location of Missing Students $2,878
84.173 Individuals with Disabilities Education Act - Targeted Assistance for Preschool $71
84.196 Homeless Assistance Act $45
84.425 Cares Act - K-12 Emergency Relief Fund - Esser I $24