Finding 508263 (2024-001)

Material Weakness

Requirement

Questioned Costs

Year

2024

Accepted

2024-11-18

Audit: 328799

Organization: Alaska Gateway School District (AK)

Auditor: Altman Rogers & CO

AI Summary

Core Issue: There is a significant lack of internal control over reporting, leading to missed deadlines for quarterly financial reports.
Impacted Requirements: The Education Stabilization Fund mandates that reports be submitted within one month after each quarter ends.
Recommended Follow-up: Management should implement measures to ensure compliance with all reporting requirements to avoid potential loss of federal funding.

Finding Text

Finding 2024-001: Lack of Internal Control over Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Pass through agency: State of Alaska Department of Education and Early Development Federal Programs: Education Stabilization Fund Assistance Listing Number: 84.425 Award Numbers: ER.24.AGSD.01 Award Period: 2024 Type of Finding: Material Weakness in Internal Control over Compliance/Material Noncompliance Criteria: Reporting requirements for the Education Stabilization Fund Program state that a grantee must submit quarterly financial reports within the month following quarter end. Condition and Context: During our testing of reporting requirements, neither of the 2 quarterly reports we reviewed were submitted within the month following the end of each respective quarter. Cause: Lack of internal controls over reporting requirements. Effect: Failure to follow reporting requirements could result in the loss of federal funding. Questioned Costs: None. Repeat Finding: This is a not a repeat finding, Recommendation: We recommend that management comply with all reporting requirements of the Education Stabilization Fund. Management Response: Management concurs with this finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2023-001 Internal Control Over Financial Closing and Reporting Type of Finding: Material weakness Condition: During the course of the audit, we noted that a material weakness in internal control over financial reporting exists in the District’s financial statement close process for preparing its year-end financial statements. Some grants were not properly reconciled and accounts receivable, cash, inventory, due to/from, payroll liabilities and unearned revenue, required adjustments. Status: This finding has been resolved.

Other Findings in this Audit

508264 2024-001

Material Weakness
1084705 2024-001

Material Weakness
1084706 2024-001

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
84.041	Impact Aid	$953,241
84.425	Education Stabilization Fund	$716,968
84.299	Indian Education -- Special Programs for Indian Children	$595,084
84.287	Twenty-First Century Community Learning Centers	$488,444
84.011	Migrant Education State Grant Program	$477,411
84.371	Comprehensive Literacy Development	$339,935
84.374	Teacher and School Leader Incentive Grants (formerly the Teacher Incentive Fund)	$179,780
84.010	Title I Grants to Local Educational Agencies	$173,100
84.027	Special Education Grants to States	$168,053
84.060	Indian Education Grants to Local Educational Agencies	$104,954
10.533	Snap-Ed Toolkit	$89,777
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$65,497
10.558	Child and Adult Care Food Program	$49,765
10.582	Fresh Fruit and Vegetable Program	$43,858
10.555	National School Lunch Program	$32,110
84.424	Student Support and Academic Enrichment Program	$30,818
15.226	Payment in Lieu of Taxes	$29,967
84.048	Career and Technical Education -- Basic Grants to States	$29,671
10.559	Summer Food Service Program for Children	$12,572
84.358	Rural Education	$11,246
10.185	Local Food for Schools Cooperative Agreement Program	$6,281
10.708	Community Wood Energy and Wood Innovation Program	$3,100
84.365	English Language Acquisition State Grants	$1,966
10.560	State Administrative Expenses for Child Nutrition	$719