Finding 390163 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 301080
Organization: Yukon Flats School District (AK)

AI Summary

  • Core Issue: The District failed to submit required quarterly financial reports on time, violating grant agreement terms.
  • Impacted Requirements: Reporting must occur within 30 days after each quarter ends, as specified in the grant agreement.
  • Recommended Follow-Up: Management should strengthen internal controls to ensure timely compliance with reporting requirements.

Finding Text

Federal Agencies: U.S. Department of Education Federal Programs: COVID 19 - Education Stabilization Fund Assistance Listing Numbers: 84.425 U and D Award Numbers: Federal award number: S425D210020, Pass through entity award number: ER 23.YFSD.01 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and noncompliance. Criteria: Reporting requirements state that quarterly financial reports must be submitted within 30 days of the end of the quarter. The District is required to provide quarterly reimbursement request reports that contain program related costs incurred during the covered period. Condition and Context: During our test of reporting requirements of the program, it was noted that District did not submit any of the required reports timely; or within 30 days of quarter end, therefore not adhering to reporting requirements specified in the grant agreement. Cause: Lack of internal controls related to reporting requirements. Effect: Lack of internal control over compliance with reporting could affect future funding. Repeat Finding: This is a repeat of finding 2022-003, therefore we believe this to be a systemic issue to this program. Questioned Costs: None reported. Recommendation: We recommend that management implement stronger internal controls over reporting to ensure they comply with reporting requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Corrective Action Plan

Name of Contact Person: Elena Begojevic, Business Manager Corrective Action Plan: YFSD hired an experienced and independent contract grants specialist. She is using Outlook to set up reporting reminders to ensure timely submission of reports. In addition, the Business office started using a calendar developed by ALASBO which addresses all reporting requirements for the school districts in Alaska. Proposed Completion Date: March 31, 2024

Categories

Cash Management Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 390164 2023-005
    Material Weakness Repeat
  • 390165 2023-006
    Material Weakness
  • 390166 2023-006
    Material Weakness
  • 966605 2023-005
    Material Weakness Repeat
  • 966606 2023-005
    Material Weakness Repeat
  • 966607 2023-006
    Material Weakness
  • 966608 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $4.13M
84.299 Indian Education -- Special Programs for Indian Children $1.77M
84.425 Education Stabilization Fund $380,357
10.555 National School Lunch Program $82,646
84.010 Title I Grants to Local Educational Agencies $53,735
10.553 School Breakfast Program $36,337
84.367 Improving Teacher Quality State Grants $27,433
84.424 Student Support and Academic Enrichment Program $16,236
84.358 Rural Education $6,085
84.173 Special Education_preschool Grants $4,079
15.130 Indian Education_assistance to Schools $4,016
84.027 Special Education_grants to States $2,611
10.582 Fresh Fruit and Vegetable Program $2,438
84.060 Indian Education_grants to Local Educational Agencies $1,489