Finding 526764 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-03-12

Audit: 345793

Organization: Caverna Independent School District (KY)

Auditor: Campbell Myers and Rutledge PLLC

AI Summary

Core Issue: There is a significant deficiency in internal controls over financial reporting due to payments made without required purchase orders.
Impacted Requirements: This violates Title 2 U.S. Code of Federal Regulations Part 200, which mandates that purchase orders must be attached to invoices for payment.
Recommended Follow-Up: The treasurer should ensure all staff are informed that purchase orders must be approved before any expenditures occur.

Finding Text

2024-001 Current Year Findings Reference Number 2024-001 – Significant Deficiency in internal control of financial reporting Department of Education-Child Nutrition Cluster- FALN 10.553, 10.555, 10.559 Criteria: Purchase orders are required to be attached to all invoices presented for payment to be completed under the provisions of Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition: Expenditures were paid without prior approval on a purchase order. Cause: Expenditures had been incurred when no purchase order had been initiated prior to purchase. Effect: Compliance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) was not achieved. Recommendation: We recommend that the treasurer advise all staff that purchase orders must be approved before expenditures are incurred. Response: The District will implement procedures to ensure that purchase orders are completed and approved before any purchases are made.

Corrective Action Plan

January 23,2025 Kentucky Department of Education Caverna Independent School District, respectfully submits the following corrective action plan for the year ended June 30, 2024. Campbell, Myers & Rutledge, PLLC 410 South Broadway Glasgow, Kentucky 42141 Audit Period: June 30, 2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS- FINANCIAL STATEMENT AUDIT NONE. FINDINGS- FEDERAL AWARDS PROGRAM AUDITS DEPARTMENT OF EDUCATION- CHILD NUTRITION CLUSTER 2020-001 Child Nutrition Cluster National School Lunch Program- CFDA NO. 10.555 Summer Food Service Program- CFDA NO. 10.559 National School Breakfast Program- CFDA NO. 10.553 Significant Deficiencies: See Finding 2024-001. Recommendation: Caverna Independent School District should ensure that all staff fill out purchase orders and must be approved before expenditures are incurred. Action Taken: Procedures have been implemented to ensure that purchase orders are completed and approved before any purchases are made. If Kentucky Department of Education has questions regarding this plan, please call Lisa Austin at 270-773-2530. Sincerely Yours, Lisa Austin Finance Officer Caverna Board of Education

Other Findings in this Audit

526765 2024-001

Significant Deficiency
526766 2024-001

Significant Deficiency
1103206 2024-001

Significant Deficiency
1103207 2024-001

Significant Deficiency
1103208 2024-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$1.26M
84.010	Title I Grants to Local Educational Agencies	$748,200
10.555	National School Lunch Program	$402,969
16.710	Public Safety Partnership and Community Policing Grants	$362,148
84.027	Special Education Grants to States	$225,832
10.553	School Breakfast Program	$181,605
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$57,412
84.173	Special Education Preschool Grants	$38,955
93.243	Substance Abuse and Mental Health Services Projects of Regional and National Significance	$36,475
84.424	Student Support and Academic Enrichment Program	$27,423
10.051	Commodity Loans and Loan Deficiency Payments	$25,767
10.559	Summer Food Service Program for Children	$23,907
10.582	Fresh Fruit and Vegetable Program	$20,908
84.048	Career and Technical Education -- Basic Grants to States	$11,751
84.358	Rural Education	$6,594
10.558	Child and Adult Care Food Program	$4,500
10.560	State Administrative Expenses for Child Nutrition	$3,026