Finding 399854 (2023-003)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-06-03
Audit: 307955
Organization: Elko County School District (NV)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Elko County School District lacks effective internal controls, leading to missing timecards for payroll costs charged to federal programs.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations Part 200, which mandates proper documentation and internal controls for federal awards.
  • Recommended Follow-Up: Implement policies to ensure timecards are maintained and approved for all payroll costs related to the School Breakfast and National School Lunch Programs.

Finding Text

2023-003: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 10.553 and 10.555 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is adequate documentation to support payroll costs through approved timecards. Condition: Payroll costs charged to the program did not have evidence of timecards by the employee. Cause: Elko County School District did not have adequate internal controls to ensure maintenance of timecards charged to the program with approvals. Effect: Unallowable costs may be charged to the program and not detected by Elko County School District. Questioned Costs: None noted Context/Sampling: A nonstatistical sample of 40 payroll charges out of a population of 2,021 charges were selected for testing. For five charges made there was no documented timecards with appropriate approval. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of timecards for the program with appropriate approvals. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2023-003 Fed Agency Name: US Department of Agriculture Program Name: Child Nutrition Cluster – School Breakfast Program and National School Lunch Program CFDA #: 10.553 and 10.555 Finding Summary: During the Single Audit, it was discovered the District had five charges out of 40 tested where the payroll cost charged to the program did not have evidence of timecards by the employee. Corrective Action Plan: The District will improve its internal control process over the submission of timecards related to federal funds. Responsible Individual: Cassandra Stahlke Chief Financial Officer Anticipated Completion Date: June 30, 2024

Categories

Allowable Costs / Cost Principles School Nutrition Programs

Other Findings in this Audit

  • 399850 2023-004
    Material Weakness
  • 399851 2023-004
    Material Weakness
  • 399852 2023-004
    Material Weakness
  • 399853 2023-004
    Material Weakness
  • 399855 2023-004
    Material Weakness
  • 399856 2023-003
    Material Weakness
  • 399857 2023-004
    Material Weakness
  • 399858 2023-004
    Material Weakness
  • 399859 2023-004
    Material Weakness
  • 399860 2023-004
    Material Weakness
  • 976292 2023-004
    Material Weakness
  • 976293 2023-004
    Material Weakness
  • 976294 2023-004
    Material Weakness
  • 976295 2023-004
    Material Weakness
  • 976296 2023-003
    Material Weakness
  • 976297 2023-004
    Material Weakness
  • 976298 2023-003
    Material Weakness
  • 976299 2023-004
    Material Weakness
  • 976300 2023-004
    Material Weakness
  • 976301 2023-004
    Material Weakness
  • 976302 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.82M
10.555 National School Lunch Program $2.52M
84.041 Impact Aid $2.48M
84.010 Title I Grants to Local Educational Agencies $1.17M
84.287 Twenty-First Century Community Learning Centers $406,197
10.553 School Breakfast Program $331,393
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $292,739
84.367 Improving Teacher Quality State Grants $255,207
84.027 Special Education_grants to States $166,300
84.060 Indian Education_grants to Local Educational Agencies $107,291
84.365 English Language Acquisition State Grants $101,515
84.048 Career and Technical Education -- Basic Grants to States $96,939
84.369 Grants for State Assessments and Related Activities $91,039
10.582 Fresh Fruit and Vegetable Program $70,262
84.425 Education Stabilization Fund $29,538
93.575 Child Care and Development Block Grant $25,673
84.011 Migrant Education_state Grant Program $12,199
66.604 Environmental Justice Small Grant Program $6,269
84.173 Special Education_preschool Grants $5,668