Finding 612278 (2022-007)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-28
Audit: 36991
Organization: Mineral County School District (NV)
Auditor: Sciarani & CO

AI Summary

  • Core Issue: The District lacked documentation showing that federal grant expenditures were reviewed and approved by management, indicating a significant deficiency in internal controls.
  • Impacted Requirements: Effective internal control systems must include management review and approval of financial reporting to prevent errors in grant reporting.
  • Recommended Follow-Up: Implement procedures to ensure all federal grant reports are reviewed and approved by management to enhance accountability and accuracy.

Finding Text

C. Findings and Questioned Costs - Major Federal Award Programs Department of Education Questioned Costs 2022-007 Federal Financial Reporting None Significant Deficiency Criteria: Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. One of the components of an effective system of internal control over financial reporting is the subsequent review and approval of grant reporting to grantor agencies. Condition: The District did not have supporting documentation that indicated reporting of federal grant expenditures were reviewed and approved by management. Effect of Condition: It is possible that errors in financial grant reporting could occur and not be prevented or detected. Cause of Condition: Due to turnover, the District was operating without a finance director for the period March through July. Recommendation: We recommend that District implement procedures that establish that all federal grant reports be reviewed and approved by management. Management Response and Corrective Action Plan: Management recognizes that there is an inherent and elevated risk associated with vacancies in key positions and inexperienced key personnel in certain positions. At present, all key positions are filled, and personnel are fully participating in NDE sponsored projects including program compliance monitoring, technical assistance support and evaluation studies as required. Two of the District?s Top Priorities are recruiting, retaining, and training (including cross-training in basic duties) essential personnel and updating policies, procedures and ARs to ensure internal controls and fiscal responsibility.

Categories

Reporting Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 35834 2022-007
    Significant Deficiency
  • 35835 2022-007
    Significant Deficiency
  • 35836 2022-007
    Significant Deficiency
  • 612276 2022-007
    Significant Deficiency
  • 612277 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $453,939
84.041 Impact Aid $257,428
84.010 Title I Grants to Local Educational Agencies $143,534
10.666 Schools and Roads - Grants to Counties $122,162
84.287 Twenty-First Century Community Learning Centers $99,895
10.553 School Breakfast Program $77,218
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $63,345
84.367 Improving Teacher Quality State Grants $20,880
84.048 Career and Technical Education -- Basic Grants to States $17,395
10.555 National School Lunch Program $16,310
84.358 Rural Education $16,085
84.027 Special Education_grants to States $8,871
84.424 Student Support and Academic Enrichment Program $7,837
12.558 Department of Defense Impact Aid (supplement, Cwsd, Brac) $5,393
84.060 Indian Education_grants to Local Educational Agencies $5,110
84.173 Special Education_preschool Grants $1,090