FAC Explorer

Finding 386214 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-03-27
Audit: 298650
Organization: Klamath Falls City School District (OR)
Auditor: Molatore Scroggin Peterson & CO LLP

AI Summary

  • Core Issue: Excess indirect costs of $70,531 were claimed due to a staff transition causing duplicate claims.
  • Impacted Requirements: Grant agreements permit indirect costs, but they must not be claimed more than once.
  • Recommended Follow-Up: Management should submit one indirect cost request at the end of the grant period to prevent duplication.

Finding Text

Section III: Federal Awards Findings Finding 2023-02: 84.027/84.173 Special Education Cluster Criteria: The grant agreements allow an indirect cost rate to be applied to the direct costs of the grant expenditures. Condition: Excess indirect costs of $70,531 were requested and received. Cause: The excess was primarily due to a period of transition of business staff. This created a duplicated claim for 2 quarters for a majority of the amount identified. Effect or Potential Effect: The management has been in contact with the oversight agencies to ensure excess funds are returned or applied to subsequent requests. The impact was that indirect costs were paid through other funds instead. Questioned Costs: The costs of $70,531 were related to excess requests. Context: The indirect accidently claimed twice due to change in staff. Recommendation: We recommend that management make 1 indirect request once at the end of the grant period. This request will be for the total amount of the indirect that would be allowed to avoid claiming indirect on the same cost more than once. Views of the Responsible Officials and Planned Corrective Actions: Management accepts the recommendation and plan to calculate an estimated indirect cost at the beginning of the contract to ensure programs are not over spent with the actual request being submitted upon closing the program.

Corrective Action Plan

Please find below the corrective action plans for Klamath Falls City School’s audit for the period ending June 30, 2023. Finding: Excess indirect costs of $70,531 were requested and received. Department’s Response: Cause: The excess was primarily due to a period of transition of business staff. This created a duplicated claim for 2 quarters for a majority of the amount identified. After the transition of department personnel, the corrective action to assure that this issue does not happen again is to submit claims monthly and claim indirect costs at that time. At the end of each quarter review each account and reconcile expenses to claimed indirect costs to assure we are 100% in compliance. Name of Responsible Person: Charity Roach, Business Manager Name of Department Contact: Charity Roach, Business Manager Projected Implementation Date: Implemented

Categories

Questioned Costs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 386215 2023-002
    Material Weakness
  • 386216 2023-002
    Material Weakness
  • 386217 2023-002
    Material Weakness
  • 386218 2023-002
    Material Weakness
  • 386219 2023-002
    Material Weakness
  • 386220 2023-002
    Material Weakness
  • 386221 2023-002
    Material Weakness
  • 386222 2023-002
    Material Weakness
  • 962656 2023-002
    Material Weakness
  • 962657 2023-002
    Material Weakness
  • 962658 2023-002
    Material Weakness
  • 962659 2023-002
    Material Weakness
  • 962660 2023-002
    Material Weakness
  • 962661 2023-002
    Material Weakness
  • 962662 2023-002
    Material Weakness
  • 962663 2023-002
    Material Weakness
  • 962664 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.87M
10.553 School Breakfast Program $581,734
84.027 Special Education_grants to States $528,810
84.287 Twenty-First Century Community Learning Centers $315,654
84.181 Special Education-Grants for Infants and Families $149,527
10.555 National School Lunch Program $146,248
84.367 Improving Teacher Quality State Grants $137,818
84.424 Student Support and Academic Enrichment Program $86,260
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $57,281
84.358 Rural Education $51,918
84.060 Indian Education_grants to Local Educational Agencies $35,428
84.365 English Language Acquisition State Grants $16,390
10.558 Child and Adult Care Food Program $6,504
93.658 Foster Care_title IV-E $4,246
84.010 Title I Grants to Local Educational Agencies $3,433
84.173 Special Education_preschool Grants $2,162