FAC Explorer

Finding 969125 (2023-005)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-04-09
Audit: 302966
Organization: Vaughn Public Schools (MT)
Auditor: Denning Downey and Assoicates Cpa's

AI Summary

  • Core Issue: Several kitchen remodel purchases were incorrectly coded as purchased services instead of capital outlay.
  • Impacted Requirements: All remodel costs must be coded as capital outlay to accurately reflect capital assets.
  • Recommended Follow-up: Implement stronger internal controls to ensure proper coding of all construction and remodel expenses.

Finding Text

2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 392675 2023-004
    Material Weakness
  • 392676 2023-004
    Material Weakness
  • 392677 2023-004
    Material Weakness
  • 392678 2023-004
    Material Weakness
  • 392679 2023-004
    Material Weakness
  • 392680 2023-005
    Significant Deficiency
  • 392681 2023-005
    Significant Deficiency
  • 392682 2023-005
    Significant Deficiency
  • 392683 2023-005
    Significant Deficiency
  • 392684 2023-005
    Significant Deficiency
  • 969117 2023-004
    Material Weakness
  • 969118 2023-004
    Material Weakness
  • 969119 2023-004
    Material Weakness
  • 969120 2023-004
    Material Weakness
  • 969121 2023-004
    Material Weakness
  • 969122 2023-005
    Significant Deficiency
  • 969123 2023-005
    Significant Deficiency
  • 969124 2023-005
    Significant Deficiency
  • 969126 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $129,950
84.425 Education Stabilization Fund $28,339
10.553 School Breakfast Program $28,332
10.555 National School Lunch Program $12,544
84.358 Rural Education $12,132
10.574 Team Nutrition Grants $7,500
84.323 Special Education - State Personnel Development $6,697
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $6,127
10.579 Child Nutrition Discretionary Grants Limited Availability $4,768
10.559 Summer Food Service Program for Children $3,063