Finding 478366 (2022-012)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-07-12

AI Summary

  • Core Issue: The District's audit for fiscal years 2021 and 2022 was submitted late, with completion in May 2024 instead of the required March deadlines.
  • Impacted Requirements: The audits were due to the State and Federal government by March 31, 2022, and March 31, 2023, as per MT Administrative Rules and Federal Uniform Guidance.
  • Recommended Follow-up: Ensure timely completion of future audits by signing contracts with audit firms well in advance and providing necessary documentation promptly.

Finding Text

2021/2022-012 Late Audit Submission CFDA Title: Impact Aid CFDA Number: 84.041 Federal Award Number: 2021 and 2022 Federal Agency: U.S. Department of Education Pass-through Entity: Direct Condition: Montana local governments with a June 30th fiscal year end must submit their audit report to the MT Department of Administration and the Federal Clearing house by March 31st, following the fiscal year end. The District’s audit was not completed until May 2024. Criteria: The audit for the fiscal year ended June 30, 2021 and June 30th, 2022, was due to the State and the Federal government by March 31, 2022 for fiscal year 2021 and March 31, 2023 for fiscal year 2022 as required by MT Administrative Rules 2.4.411 and the Federal Uniform Guidance/A-133 rules. Context: Per review of the audit compliance requirements for both the State of Montana and the Federal government. Effect: The District is late in completing their fiscal year 2021 and 2022 audit. Cause: The District did not even sign a contract with the audit firm until July 2023 and was unable to provide needed documentation to complete both the financial statement portion of the audit and the federal compliance testing for the audit. Recommendation: We recommend the District complete their annual audits in compliance with MT Administrative Rules 2.4.411 and federal rules described in the Uniform Guidance/A-133.

Corrective Action Plan

FINDING 2021/2022-012: Late Audit Submission Response: The District was in compliance with timely submissions until the auditor notified the District he was not able to complete the audit due to serious health issues. Du to the shortage of OPI approved auditors, the District was not able to acquire and auditing firm.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 478365 2022-011
    Material Weakness
  • 478367 2022-013
    Significant Deficiency
  • 1054807 2022-011
    Material Weakness
  • 1054808 2022-012
    Material Weakness
  • 1054809 2022-013
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $4.00M
84.425 Education Stabilization Fund $80,569
10.559 Summer Food Service Program for Children $71,941
10.553 School Breakfast Program $69,344
84.060 Indian Education_grants to Local Educational Agencies $61,791
15.130 Indian Education_assistance to Schools $50,484
84.010 Title I Grants to Local Educational Agencies $37,643
84.358 Rural Education $23,640
21.019 Coronavirus Relief Fund $13,993
10.582 Fresh Fruit and Vegetable Program $9,180
10.555 National School Lunch Program $7,039
84.048 Career and Technical Education -- Basic Grants to States $6,461