Finding 47736 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-22
Audit: 53695

AI Summary

  • Issue: The Schedule of Expenditures of Federal Awards (SEFA) was understated by $33,592 due to inexperience in preparing it for the first time.
  • Requirements Impacted: The SEFA must include all federal program expenditures as per 2 CFR Subpart F Section 200.510b.
  • Follow-Up: Implement a review process involving administrative personnel to ensure SEFA accuracy and reconcile federal expenditures with filed claims.

Finding Text

Finding 2022-002 U.S. DEPARTMENT OF EDUCATION 84.358A RURAL EDUCATION GRANT Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Finding 2022-002 Condition : The Schedule of Expenditures of Federal Awards (SEFA) was materially understated by $33,592. Cause : This was the School's first single audit and the first time for the School's accountant to prepare the SEFA. The School does not have a process in place for School Administrative personnel who are familiar with the School's grants to review the SEFA for accuracy and completeness. Effect : An audit adjustment was made to increase the reported amount on the SEFA for the Rural Education Grant (84.358A) by $38,256 and reduce the reported amount on the SEFA for the Special Education Grants (84.027) by $8,288. The increase in expenditures resulted in the need to select a second federal award for testing. Recommendation : We recommend that the School's accountant work with administrative personnel to identify all awards from federal sources and implement a process whereby School administrative personnel review the SEFA prepared by the accountant. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.

Corrective Action Plan

Finding 2022-0002 Criteria: According to 2 CFR Subpart F Section 200.Sl0b, the auditee must prepare a Schedule of Expenditures of Federal Awards {SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was materially understated by $33,592. Cause: This was the School's first single audit and the first time for the School's accountant to prepare the SEFA. The School does not have a process in place for School Administrative personnel who are familiar with the School's grants to review the SEFA for accuracy and completeness. Effect: An audit adjustment was made to increase the reported amount on the SEFA for the Rural Education Grant (84.358A) by $38,256 and reduce the reported amount on the SEFA for the Special Education Grants (84.027) by $8,288. The increase in expenditures resulted in the need to select a second federal award for testing. Recommendation: We recommend that the School's accountant work with administrative personnel to identify all awards from federal sources and implement a process whereby School administrative personnel review the SEFA prepared by the accountant. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. Action Taken: As of the date of the exit conference, we will institute an in-person quarterly review of each award with the responsible party to ensure costs are appropriately allocated and reimbursements requested. As part of this quarterly review, we will identify the source of the award, year-to-date expenses, grant budget and year-to-date reimbursement claims submitted. The accountant will reconcile federal award expenditures to the claims filed for the year. Furthermore, at year-end, the SEFA will be prepared by the accountant and reviewed by the appropriate administrative personnel for completeness and accuracy.

Categories

Reporting

Other Findings in this Audit

  • 47733 2022-003
    Material Weakness
  • 47734 2022-003
    Material Weakness
  • 47735 2022-003
    Material Weakness
  • 624175 2022-003
    Material Weakness
  • 624176 2022-003
    Material Weakness
  • 624177 2022-003
    Material Weakness
  • 624178 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $207,387
84.425 Education Stabilization Fund $122,541
84.027 Special Education Grants to States $110,896
84.010 Title I Grants to Local Educational Agencies $107,926
10.553 School Breakfast Program $93,227
84.358 Rural Education $38,256
84.173 Special Education Preschool Grants $33,155
84.367 Supporting Effective Instruction State Grants $28,389
84.424 Student Support and Academic Enrichment Program $12,619