Finding 546967 (2024-005)

Material Weakness
Requirement
ABFGLMN
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351351
Organization: Farrell Area School District (PA)

AI Summary

  • Core Issue: The District failed to prepare a required Schedule of Expenditures of Federal Awards, violating 2 CFR 200.510(a).
  • Impacted Requirements: Compliance with federal regulations regarding the accurate reporting of federal awards expended.
  • Recommended Follow-Up: Establish clear policies for tracking federal assistance and implement review procedures to ensure accuracy and completeness of the Schedule.

Finding Text

Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.

Corrective Action Plan

Preparation of Schedule of Expenditures of Federal Awards Type of Finding: Material Weakness in Internal Control over Financial Reporting/ Compliance • Contact Person Responsible: Frank Antuono, Business Manager • Corrective Action to be Taken: The District will establish formal written policies and procedures for the preparation of the Schedule of Expenditures of Federal Awards (SEFA) in compliance with 2 CFR 200.51 0(a). These procedures will: o Identify all sources of federal revenue o We have added the assigned federal funding source codes to our district budget operation in CSIU, which will now allow us to track these expenditures back to our internally controlled spreadsheets as verification of expenditures. o Track expenditures using dedicated account codes in the general ledger o Assign responsibility for monthly reconciliation and schedule preparation o Include a secondary review of the SEFA by someone other than the preparer The Business Office will undergo training on SEFA requirements and reconciliation practices. These changes will ensure complete and accurate reporting of federal expenditures for all future reporting periods.

Categories

Material Weakness Reporting School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 546968 2024-005
    Material Weakness
  • 546969 2024-005
    Material Weakness
  • 546970 2024-005
    Material Weakness
  • 546971 2024-005
    Material Weakness
  • 546972 2024-006
    Material Weakness
  • 546973 2024-006
    Material Weakness
  • 1123409 2024-005
    Material Weakness
  • 1123410 2024-005
    Material Weakness
  • 1123411 2024-005
    Material Weakness
  • 1123412 2024-005
    Material Weakness
  • 1123413 2024-005
    Material Weakness
  • 1123414 2024-006
    Material Weakness
  • 1123415 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $5.25M
93.556 Marylee Allen Promoting Safe and Stable Families Program $577,848
10.555 National School Lunch Program $505,782
10.553 School Breakfast Program $226,972
84.027 Special Education Grants to States $205,529
84.287 Twenty-First Century Community Learning Centers $84,655
10.558 Child and Adult Care Food Program $33,069
10.559 Summer Food Service Program for Children $23,836
10.649 Pandemic Ebt Administrative Costs $653