Finding 58907 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-05-14
Audit: 54958
Organization: Chase County Schools (NE)

AI Summary

  • Core Issue: The District lacks effective internal controls to ensure accurate reporting of federal award expenditures.
  • Impacted Requirements: The schedule of expenditures must comply with the modified cash basis of accounting, which is currently not being met.
  • Recommended Follow-Up: Management should review auditor adjustments and disclosures, and implement additional checks on financial statements.

Finding Text

SECTION III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS American Rescue Plan - Elementary and Secondary School Emergency Relief 84.425U Child Nutrition Cluster National School Lunch Program 10.553/10.555 Significant Deficiency 2022-003 INTERNAL CONTROL OVER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS PREPARATION AND REVIEW Criteria As described in our engagement letter, management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation of the schedule of expenditures of federal awards, including the notes to the schedule of expenditures of federal awards, in conformity with the modified cash basis of accounting. Condition The District does not have a system of internal control that would provide manage-ment with reasonable assurance that the District's schedule of expenditures of federal awards and related disclosures are complete and presented in accordance with the modified cash basis of accounting. As such, management requested us to compile the trial balance from the general ledger and prepare a draft of the schedule of expenditures of federal awards, including the related note disclosures. Cause Management does not prepare the schedule of expenditures of federal awards in accordance with the modified cash basis of accounting. Potential Effect The potential exists that a material misstatement of the schedule of expenditures of federal awards could occur and not be prevented or detected by the District's internal control. Recommendation We recommend that the District review and approve the proposed auditor adjusting entries and the adequacy of schedule of the expenditures of federal awards disclo-sures prepared by the auditors and apply analytic procedures to the draft financial statements, among other procedures as considered necessary by management.

Corrective Action Plan

520 E. 9111 Street; P.O. Box 577 Imperial, Nebraska 69033 Phone: 308-882-4304 Fax: 308-882-5629 CORRECTIVE ACTION PLAN May 2, 2023 Chase County Schools District No. 10 respectfully submits the following corrective action plan for the year ended August 31, 2022, for the findings identified by Dana F. Cole & Company, LLP, Grand Island, Nebraska. The findings from the schedule of findings and questioned costs are discussed below and are numbered consistently with the numbers assigned in that schedule. FEDERAL AWARD STATEMENTFINDINGS 2022-003 INTERNAL CONTROL OVER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS PREPARATION AND REVIEW Recommendation: The District should review and approve the proposed auditor adjusting entries and the adequacy of schedule of the expenditures of federal awards disclosures prepared by the auditors and apply analytic procedures to the draft financial statements, among other procedures as considered necessary by management. Action Taken: The District relies on the auditor to propose adjustments necessary to prepare the financial statements including the related note disclosures. The District reviews such financial statements and approves all adjustments. The District also uses analytic procedures, and other procedures determined necessary. If the Nebraska Department of Education has questions regarding this plan, please call Mr. Adam Lambert at 308.882.4304. Sincerely yours, Mr. Adam Lambert Superintendent

Categories

School Nutrition Programs Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 58908 2022-003
    Significant Deficiency
  • 58909 2022-003
    Significant Deficiency
  • 58910 2022-003
    Significant Deficiency
  • 58911 2022-003
    Significant Deficiency
  • 58912 2022-003
    Significant Deficiency
  • 58913 2022-003
    Significant Deficiency
  • 58914 2022-003
    Significant Deficiency
  • 58915 2022-003
    Significant Deficiency
  • 635349 2022-003
    Significant Deficiency
  • 635350 2022-003
    Significant Deficiency
  • 635351 2022-003
    Significant Deficiency
  • 635352 2022-003
    Significant Deficiency
  • 635353 2022-003
    Significant Deficiency
  • 635354 2022-003
    Significant Deficiency
  • 635355 2022-003
    Significant Deficiency
  • 635356 2022-003
    Significant Deficiency
  • 635357 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $289,111
84.027 Special Education_grants to States $149,960
84.010 Title I Grants to Local Educational Agencies $103,028
10.555 National School Lunch Program $29,119
84.048 Career and Technical Education -- Basic Grants to States $28,606
10.553 School Breakfast Program $20,892
84.173 Special Education_preschool Grants $6,677
93.778 Medical Assistance Program $5,578