Finding 575462 (2024-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-03

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) had inaccuracies and was not reconciled with the general ledger, leading to potential misstatements in financial reporting.
  • Impacted Requirements: Compliance with CFR Part 200.508 and 200.510, which mandate accurate reporting of federal awards and reconciliation with accounting records.
  • Recommended Follow-Up: Implement policies for accurate reporting, conduct regular reconciliations, and provide training for staff involved in SEFA preparation by August 1, 2025.

Finding Text

Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness) Assistance Listing Number and Title: 84.041 Impact Aid Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.010 Title I Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch Name of Federal Agency: U.S. Department of Agriculture Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.   Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including: • Overclaimed revenues for Title I • Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation • Incorrect reporting of state and federal revenues for National School Lunch Program. Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger. Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following: SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs. Planned Implementation Date: August 1, 2025 Responsible Person: District Business Manager Section IV—Summary Schedule of Prior Audit Findings There were no findings for the fiscal year ended June 30, 2023.

Categories

Reporting

Other Findings in this Audit

  • 575455 2024-003
    Material Weakness
  • 575456 2024-003
    Material Weakness
  • 575457 2024-003
    Material Weakness
  • 575458 2024-003
    Material Weakness
  • 575459 2024-003
    Material Weakness
  • 575460 2024-003
    Material Weakness
  • 575461 2024-004
    Material Weakness
  • 575463 2024-004
    Material Weakness
  • 575464 2024-004
    Material Weakness
  • 575465 2024-004
    Material Weakness
  • 575466 2024-004
    Material Weakness
  • 575467 2024-004
    Material Weakness
  • 1151897 2024-003
    Material Weakness
  • 1151898 2024-003
    Material Weakness
  • 1151899 2024-003
    Material Weakness
  • 1151900 2024-003
    Material Weakness
  • 1151901 2024-003
    Material Weakness
  • 1151902 2024-003
    Material Weakness
  • 1151903 2024-004
    Material Weakness
  • 1151904 2024-004
    Material Weakness
  • 1151905 2024-004
    Material Weakness
  • 1151906 2024-004
    Material Weakness
  • 1151907 2024-004
    Material Weakness
  • 1151908 2024-004
    Material Weakness
  • 1151909 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $749,939
84.010 Title I Grants to Local Educational Agencies $282,526
84.027 Special Education Grants to States $203,135
10.553 School Breakfast Program $152,111
84.060 Indian Education Grants to Local Educational Agencies $69,567
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $42,121
84.424 Student Support and Academic Enrichment Program $16,525
10.555 National School Lunch Program $12,005
10.185 Local Food for Schools Cooperative Agreement Program $6,841
10.559 Summer Food Service Program for Children $6,320
84.425 Education Stabilization Fund $3,837
10.582 Fresh Fruit and Vegetable Program $1,464
84.173 Special Education Preschool Grants $1,300
10.649 Pandemic Ebt Administrative Costs $653