EIN: 436001555
UEI: LJ8CQE7FWQX5
Audited by: Wade Stables P.C.
Oversight agency: 84 [Department of Education]
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Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 12, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 12, 2026 (95 days from today).
What is a management decision? →During testing, we noted a lack of oversight on one of the monthly Claim for Reimbursement forms. There was no indication that a review was performed before the form was submitted to DESE, nor was there indication that a subsequent review was performed after submission. It was noted that one building submitted a Claim for Reimbursement form for February 2025 that was not correctly completed. The meal count for lunch on the Claim for Reimbursement form did not match the meal count reported on the District’s Infinite Campus software. Cause: Control procedures were not in place to ensure that monthly Claims for Reimbursements and Free and Reduced applications are accurately calculated and input before the forms are submitted. Effect: Without timely review of reports before submission, requested grant revenue can be understated or overstated when based on incorrect grant reports. In addition, other grant noncompliance can be overlooked. This could result in missed funding, excess funding, or other adverse conditions with the grantors. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be an isolated issue as only one of the twelve months tested contained an error where the meal count on the Claim for Reimbursement form did not match the meal count reported on the District’s Infinite Campus Software. Recommendation: We recommend that the District implement written procedures that require a monthly review be performed by a second party for Claims for Reimbursement for the food service programs. This should be done prior to submitting the reimbursement claim to DESE. The review should be performed to ensure that all information has been entered, is accurate, and is classified on the appropriate lines to ensure reimbursements are for the correct amounts.
Show full finding ▾Hide full finding ▴Finding 2025-001 – Significant Deficiency (Repeat Finding) Federal Agency: U.S. Department of Agriculture Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: Child Nutrition Cluster – 10.553 School Breakfast Program, 10.555 National School Lunch Program, 10.555 COVID-19 Supply Chain Assistance, 10.559 Summer Food Service Program for Children. Compliance Requirement: L. Reporting Criteria: Per 7 CFR 210.8(a) and 7 CFR 220.11(c), the District is required to have proper internal controls over the reporting of monthly meal counts to ensure that information submitted for free and reduced meals is accurate and complete. The monthly meal counts are reported to DESE for reimbursement based on the number of free and reduced meals served during the month. The amount of reimbursement will depend on the number of each type of meal and whether it was for breakfast or lunch. Condition: During testing, we noted a lack of oversight on one of the monthly Claim for Reimbursement forms. There was no indication that a review was performed before the form was submitted to DESE, nor was there indication that a subsequent review was performed after submission. It was noted that one building submitted a Claim for Reimbursement form for February 2025 that was not correctly completed. The meal count for lunch on the Claim for Reimbursement form did not match the meal count reported on the District’s Infinite Campus software. Cause: Control procedures were not in place to ensure that monthly Claims for Reimbursements and Free and Reduced applications are accurately calculated and input before the forms are submitted. Effect: Without timely review of reports before submission, requested grant revenue can be understated or overstated when based on incorrect grant reports. In addition, other grant noncompliance can be overlooked. This could result in missed funding, excess funding, or other adverse conditions with the grantors. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be an isolated issue as only one of the twelve months tested contained an error where the meal count on the Claim for Reimbursement form did not match the meal count reported on the District’s Infinite Campus Software. Recommendation: We recommend that the District implement written procedures that require a monthly review be performed by a second party for Claims for Reimbursement for the food service programs. This should be done prior to submitting the reimbursement claim to DESE. The review should be performed to ensure that all information has been entered, is accurate, and is classified on the appropriate lines to ensure reimbursements are for the correct amounts.
Corrective Action Plan 1. Establish Written Procedures o The District will develop and adopt written procedures outlining the process for preparing, reviewing, and approving monthly Claims for Reimbursement for all food service programs (Breakfast, Lunch, and Summer). o Procedures will specify responsible staff, required documentation, timelines, and review steps prior to submission. 2. Implement Dual Review Process o The Food Service Director ( or designee) will prepare the monthly meal count report using data from the Infinite Campus system. o The assistant to the food service coordinator will perform a secondary review before submission to DESE. o The review will confirm: • Meal counts match Infinite Campus reports. • Correct classification of free, reduced, and paid meals. • Accuracy of totals by meal type (breakfas1/lunch). o Both preparer and reviewer will sign and date the Monthly Meal Count Verification Form as documentation ofreview. 3. Post-Submission Verification o After clairo submission, the reviewer will retain a copy of the DESE Claim for Reimbursement and supporting Infinite Campus reports in a centralized digital folder. o Random quarterly spot checks will be performed to confirm continued accuracy and compliance. 4. Training o The Food Service Director and business office staff will receive annual training on meal count reporting procedures and DESE claim submission requirements. o Training records will be maintained. 5. Timeline for Implementation o Written procedures finalized and approved by December 15, 2025. o Dual review process implemented beginning with the December 2025 claim. o Staff training completed by January 31, 2026. 6. Responsible Parties o Food Service Director - preparation and initial verification. o Chief Operations Officer - review and approval. o Superintendent - oversight and policy adoption. We are committed to ensuring the accuracy and integrity of our meal count reporting and eligibility determinations. The District will implement these corrective actions in a timely manner to address the identified findings and ensure compliance with applicable federal regulations.
2024-002
FAC accepted this audit on January 6, 2025 — management decision was due July 6, 2025.
During the course of our audit, we reviewed semi-annual certifications for all Title I teachers, as required. These certifications are used to verify that the employee spent one hundred percent of their time working in the Title I program. Per requirements, these certifications should be signed at the end of the applicable period as that is when the actual time spent in the program is known. However, during our review, we noted that all the certifications were signed at the beginning of the applicable semi-annual period. Cause: There is a lack of oversight in this area. Supervisors should ensure the teachers complete the semi-annual certifications in a timely manner after the end of each semi-annual period. Also, program directors should be reviewing the signed certifications to ensure all program requirements are followed to avoid any noncompliance issues and consequences. Effect: Semi-annual certifications are listed under the Allowable Costs/Cost Principles compliance requirement. In order to apply expenditures to the Title I Program, the employees need to certify that they are spending all of their time on that program. Without this certification, it is not clear that the amounts reported as Title I expenditures are indeed eligible expenditures. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be a systemic problem since all Title I semi-annual certifications for the fiscal year 2024 were reviewed and all certifications were filled out at the beginning of each semi-annual period instead of subsequent to the period. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend that the District employ stronger oversight in this area by assigning a review to the Title Program Director or equivalent. Once the certifications are signed by a supervisor, they should be forwarded to this point person for their review and signature. The certifications should be reviewed to ensure each Title teacher is completing a semi-annual certification and that it is being signed by the supervisor. These certifications should also have a due date twice a year to ensure they are done timely and are not overlooked. These should be added to the review checklist already used for Title I reporting. Views of Responsible Officials: The District will set up automated reminders through the internal tracking system with specific deadlines to ensure that all certifications are completed and signed no later than 30 business days after the end of the applicable periods. Regular checks will be conducted by the Title 1 Coordinator to verify that all certifications are completed and signed within the required timeframes. All relevant staff members will undergo training on the new procedures, and will be assigned roles and responsibilities for monitoring and submitting the certifications. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Findings and Questioned Costs – Major Federal Award Programs Audit Federal Agency: U.S. Department of Education Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: 84.010 Title I Grants to Local Educational Agencies Compliance Requirement: B. Allowable Costs Criteria: Per 2 CFR 200.430(g)(1)(i), the District is required to have records that are supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The District uses semi-annual certifications to determine if the salaries and/or employee benefits of its employees are allowable for the grant. These certifications are to be signed after each semi-annual period by the teacher and the Title I program director. These certifications show that the teachers’ time was spent under the Title I program, and their salaries and benefits are allowable for the Title I program. Condition: During the course of our audit, we reviewed semi-annual certifications for all Title I teachers, as required. These certifications are used to verify that the employee spent one hundred percent of their time working in the Title I program. Per requirements, these certifications should be signed at the end of the applicable period as that is when the actual time spent in the program is known. However, during our review, we noted that all the certifications were signed at the beginning of the applicable semi-annual period. Cause: There is a lack of oversight in this area. Supervisors should ensure the teachers complete the semi-annual certifications in a timely manner after the end of each semi-annual period. Also, program directors should be reviewing the signed certifications to ensure all program requirements are followed to avoid any noncompliance issues and consequences. Effect: Semi-annual certifications are listed under the Allowable Costs/Cost Principles compliance requirement. In order to apply expenditures to the Title I Program, the employees need to certify that they are spending all of their time on that program. Without this certification, it is not clear that the amounts reported as Title I expenditures are indeed eligible expenditures. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be a systemic problem since all Title I semi-annual certifications for the fiscal year 2024 were reviewed and all certifications were filled out at the beginning of each semi-annual period instead of subsequent to the period. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend that the District employ stronger oversight in this area by assigning a review to the Title Program Director or equivalent. Once the certifications are signed by a supervisor, they should be forwarded to this point person for their review and signature. The certifications should be reviewed to ensure each Title teacher is completing a semi-annual certification and that it is being signed by the supervisor. These certifications should also have a due date twice a year to ensure they are done timely and are not overlooked. These should be added to the review checklist already used for Title I reporting. Views of Responsible Officials: The District will set up automated reminders through the internal tracking system with specific deadlines to ensure that all certifications are completed and signed no later than 30 business days after the end of the applicable periods. Regular checks will be conducted by the Title 1 Coordinator to verify that all certifications are completed and signed within the required timeframes. All relevant staff members will undergo training on the new procedures, and will be assigned roles and responsibilities for monitoring and submitting the certifications. See Corrective Action Plan.
Corrective Action Plan for Title I semi-annual Certifications In response to the finding regarding the completion and signing of Title I Semi-annual Certifications, the Hannibal School District has developed the following Corrective Action Plan (CAP) to ensure full compliance with Title I regulations moving forward. The plan outlines the actions that will be taken, identifies the responsible individual(s), and specifies the anticipated completion date for corrective actions. Corrective Action Plan Details: 1. Finding: The Title I semi-annual Certifications were not completed and signed in accordance with the required timeline after the applicable period. 2. Planned Actions: o Immediate Review and Verification: The District will immediately review all Title I semi-annual Certifications for the current year to ensure they are completed, signed, and filed properly. Any missing or unsigned certifications will be identified and corrected. o Establishment of Procedures for Timely Completion and Signing: A formal procedure will be established to ensure that all Title I semi-annual Certifications are completed and signed after the applicable period ends. This includes: ■ Clear Timelines: Specific deadlines will be set to ensure all certifications are completed and signed no later than 30 business days after the end of the applicable period. ■ Automated Reminders: The District will set up automated reminders through our internal tracking system to ensure certification completion and signing is done promptly. ■ Internal Monitoring: Regular checks will be conducted by the Title I coordinator to verify that all certifications are completed and signed within the required timeframe. o Training and Staff Accountability: All relevant staff members, including Title I coordinators and administrative personnel, will undergo training on the new procedures and the importance of meeting the required deadlines. Additionally, clear roles and responsibilities will be assigned to individuals for monitoring and submitting the certifications. 3. Person(s) Responsible: o Superintendent of Schools: Oversee the implementation of this Corrective Action Plan to ensure that all procedures are followed. o Title I Coordinator: Ensure that all certifications are completed and signed on time and monitor staff adherence to the new processes. 60 o Administrative Staff: Responsible for assisting with the timely submission of required documentation. • 4. Anticipated Completion Date: The District aims to have the corrective actions fully implemented and the procedures in place by February 1st, 2025. We are committed to ensuring compliance with Title I requirements and addressing any discrepancies that may arise. The District will provide updates on progress as needed and will conduct periodic reviews to ensure ongoing compliance. If you have any questions or require additional information, please feel free to contact me directly. Sincerely, Susan Johnson Superintendent of Schools Hannibal School District #60
During our testing, we noted a lack of oversight regarding the monthly Claims for Reimbursement. There was no review noted before they were submitted to DESE nor was there a subsequent review performed after submission. It was noted that the Claims for Reimbursements for February and April were not completed correctly. The Lunch and Breakfast meal counts were switched on both monthly claims. We also noted that the applications for free and reduced lunch were not being reviewed by the Food Service Director for accuracy. We noted one application during testing that had illegible numbers and, therefore, the total income was not clear. The household was determined to be free by the District but there was no clarification to confirm the illegible numbers were correct as assumed. Per discussion with the Food Service Director, they agreed that the income number could have been improperly calculated and that the household could have been incorrectly determined as eligible for free meals. Cause: Control procedures were not in place to ensure that monthly Claims for Reimbursements and Free and Reduced applications were accurately entered/calculated before being submitted. Effect: Without timely review of reports before submission, requested grant revenue can be understated or overstated when based on erroneous submitted grant reports, In addition, other grant noncompliance can be overlooked. This could result in missed funding, excess funding, or other adverse conditions with the grantors. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be a systemic issue as two out of the four months tested contained errors where the Lunch and Breakfast meal counts were switched on the Claims for Reimbursement form. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend that the District develop written procedures that require a monthly review by another party for Claims for Reimbursement for the food service programs. This should be done prior to submitting the reimbursement claim to DESE. The review should be done to ensure that all information has been entered, is accurate, and is classified in the appropriate line to ensure reimbursements are for the correct amounts. In addition, we recommend that the District develop written procedures that require Free and Reduced Applications, including the calculations of income, be reviewed before being entered into the District’s tracking program. The review should be done to ensure that calculations of household income and determination of eligibility are correct when referenced to the Income Eligibility Guide.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Agriculture Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: Child Nutrition Cluster – 10.553 School Breakfast Program, 10.555 National School Lunch Program, 10.559 Summer Food Service Program for Children. Compliance Requirement: L. Reporting Criteria: Per 7 CFR 210.8(a) and 7 CFR 220.11(c), the District is required to have proper internal controls over the reporting of monthly meal counts to ensure that information submitted for free and reduced meals is accurate and complete. The monthly meal counts are reported to DESE for reimbursement based on the number of free and reduced meals served during the month. The amount of reimbursement will depend on the number of each type of meal and whether it was for breakfast or lunch. In accordance with 7 CFR 210.7(c)(1)(i), the District is required to correctly determine eligibility for free and reduced price lunches and afterschool snacks based on the requirements under 7 CFR 245. Under 7 CFR 245.6(c)(4), if the student is not automatically eligible under direct certification or another exception, the District must use income information provided by the household of the student to calculate the student's eligibility for free or reduced prices. The District makes applications available to households so that their income can be reported to the District for such purposes. The District then calculates the income on the applications and references the Income Eligibility Guidelines for the school year to determine if households are eligible or ineligible for free or reduced meals. Condition: During our testing, we noted a lack of oversight regarding the monthly Claims for Reimbursement. There was no review noted before they were submitted to DESE nor was there a subsequent review performed after submission. It was noted that the Claims for Reimbursements for February and April were not completed correctly. The Lunch and Breakfast meal counts were switched on both monthly claims. We also noted that the applications for free and reduced lunch were not being reviewed by the Food Service Director for accuracy. We noted one application during testing that had illegible numbers and, therefore, the total income was not clear. The household was determined to be free by the District but there was no clarification to confirm the illegible numbers were correct as assumed. Per discussion with the Food Service Director, they agreed that the income number could have been improperly calculated and that the household could have been incorrectly determined as eligible for free meals. Cause: Control procedures were not in place to ensure that monthly Claims for Reimbursements and Free and Reduced applications were accurately entered/calculated before being submitted. Effect: Without timely review of reports before submission, requested grant revenue can be understated or overstated when based on erroneous submitted grant reports, In addition, other grant noncompliance can be overlooked. This could result in missed funding, excess funding, or other adverse conditions with the grantors. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be a systemic issue as two out of the four months tested contained errors where the Lunch and Breakfast meal counts were switched on the Claims for Reimbursement form. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend that the District develop written procedures that require a monthly review by another party for Claims for Reimbursement for the food service programs. This should be done prior to submitting the reimbursement claim to DESE. The review should be done to ensure that all information has been entered, is accurate, and is classified in the appropriate line to ensure reimbursements are for the correct amounts. In addition, we recommend that the District develop written procedures that require Free and Reduced Applications, including the calculations of income, be reviewed before being entered into the District’s tracking program. The review should be done to ensure that calculations of household income and determination of eligibility are correct when referenced to the Income Eligibility Guide.
Re: Corrective Action Plan for Findings Related to Monthly Claims for Reimbursement and Free/Reduced Meal Applications In response to the findings regarding the District's internal controls over monthly meal count reporting, Claims for Reimbursement, and the review of Free and Reduced Meal applications, Hannibal School District 60 has developed the following Corrective Action Plan (CAP) to address the identified issues and ensure compliance with federal regulations under 7 CFR 210.B(a), 7 CFR 220.11(c), and 7 CFR 245.6(c)(4). Corrective Action Plan Details: 1. Finding 1: Lack of Oversight on Monthly Claims for Reimbursement Condition: The District did not conduct a review of monthly Claims for Reimbursement before submission to the Department of Elementary and Secondary Education (DESE), nor was a subsequent review performed after submission. Additionally, the Claims for Reimbursement for February and April were submitted with the lunch and breakfast meal counts incorrectly switched. Planned Actions: o Review Process for Claims: The District will establish a clear and documented procedure for reviewing the monthly Claims for Reimbursement before submission to DESE. This process will include a verification checklist to confirm the accuracy of meal counts for both breakfast and lunch. o Secondary Review by Senior Staff: A second, independent review will be conducted by the Food Service Supervisor or another designated senior staff member before submission. The purpose of this review will be to ensure that meal counts are correctly reported and to identify any discrepancies before the claims are submitted. o Training: All staff involved in the preparation and submission of monthly meal claims will undergo additional training on the accurate completion of meal count reports and claims for reimbursement. 2. Person(s) Responsible: o Food Service Director: Oversee the implementation of the new review procedures for monthly Claims for Reimbursement. o Food Service Supervisor: Conduct a secondary review of the monthly meal count reports before submission. 3. Anticipated Completion Date: The review procedures and training will be fully implemented by January 1st, 2025 4. Finding 2: Inadequate Review of Free and Reduced Meal Applications Condition: During testing, it was noted that one app.lication had illegible numbers, resulting in unclear income figures. The household was assumed to be eligible for free meals, but the accuracy of the income figures was not verified, which could have led to improper eligibility determination. Planned Actions: o Review and Verification Process: The District will implement a formal review process to ensure that all Free and Reduced Meal 58 applications are thoroughly checked for legibility and accuracy. This review will include verifying income calculations and ensuring that illegible numbers or unclear data are clarified before eligibility determinations are made. o Enhanced Application Procedures: A standardized checklist will be developed for reviewing applications, with specific attention to legibility, accuracy, and completeness. The checklist will be used by staff during the application review process. o Follow-up with Households: If any data on an application is unclear or illegible, the District will contact the household to clarify the information before proceeding with the eligibility determination. o Training: The Food Service Director and application review staff will receive training on the proper review and verification of Free and Reduced Meal applications, including the importance of ensuring that all information is clear and accurate. 5. Person(s) Responsible: o Food Service Director: Oversee the review and verification process for Free and Reduced Meal applications. o Food Service Staff: Review applications for legibility and accuracy, and follow up with households if necessary. 6. Anticipated Completion Date: The new review process and training will be fully implemented by January 1st, 2025 7. Cause of Findings: The primary cause of these findings was the misinterpretation of handwritten reported income by the applicant and a mix-up of breakfast and lunch counts during the reporting of Free and Reduced meal counts for one school over the course of a few months. 8. Effect of Findings: Without a robust review process in place, there is a risk of submitting inaccurate meal count data and miscalculating eligibility for free and reduced meals. This could result in the District receiving either too much or too little funding from DESE, affecting the financial stability of the program. Additionally, failure to ensure accurate eligibility determinations could result in noncompliance with federal regulations, potentially leading to penalties or loss of funding. Implementation and Monitoring: • Ongoing Monitoring: The Food Service Director will regularly monitor the new procedures to ensure they are being followed correctly and will conduct random spot checks of meal counts and application reviews to ensure compliance. • Reporting: The Food Service Director will report on the status of the corrective actions to the Superintendent on a monthly basis until the corrective actions are fully integrated into the District's operational processes. We are committed to ensuring the accuracy and integrity of our meal count reporting and eligibility determinations. The District will implement these corrective actions in a timely manner to address the identified findings and ensure compliance with applicable federal regulations. If you have any questions or require further details, please do not hesitate to contact me. Sincerely, Susan Johnson Superintendent of Schools Hannibal School District #60
FAC accepted this audit on December 18, 2023 — management decision was due June 18, 2024.
During the course of our audit, we noted that the District requested reimbursement for expenses that were not properly supported by the necessary project codes and source codes in the financial management system. The grant payment request for reimbursements for respective Federal grants were not reconciled to the District’s general ledger and the classification of expenditures did not agree to what was detailed on the grant payment request for reimbursements. Additionally, the calculation for allocating expenses and the journal entries made were not approved. The District must be able to specifically identify and provide support for every Federal expenditure that is reimbursed. Statement of Cause: Control procedures were not in place to reconcile the general ledger project codes to the grant payment request for reimbursement for the grant. The District failed to review expenses throughout the year to ensure transactions were properly classified. Controls were not in place to properly review expense allocations or journal entries. Statement of Effect: Without timely reconciliations and monitoring processes, grant expenditures can be omitted or overstated on submitted grant reports or other grant noncompliance can be overlooked. This could result in missed funding or noncompliance with grant agreements which could lead to adverse conditions with the grantors. Questioned Costs: No questioned costs. Perspective Information: This appears to be a systemic problem because after reviewing other grants received by the District, the correct project codes and source codes were not being properly utilized. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend that the District develop written procedures that require grant payment request for reimbursements and any other required reporting to be reconciled to the internal accounting records prior to report submission. The District must be able to specifically identify and provide support for every expenditure that is reimbursed. A review should be performed to ensure the expenditures are properly classified and allowable. This process should be attainable if each grant utilizes the proper project codes and sources codes as required by the grant agreements. The reconciliation should be monitored by someone not responsible for the recording and procedures should be put in place to ensure the reconciliation is being performed timely. Controls should be implemented for adjustments that need to be made to be reviewed by a person other than the one recording the adjustment. Evidence of reconciliations and reviews should be clearly identifiable. Views of Responsible Officials: The Hannibal School District received millions of one-time federal grant monies to assist with expenditures incurred as a result of the effects of the coronavirus pandemic. Although these funds were hugely helpful, minimal guidance was available. This is not a finding that has been presented to us in the past. The school district has received federal and state grants annually that are reconciled to the appropriate project codes and this process will be diligently followed as in prior years. For example, the district was awarded the Immediate Responses Services grant in Fall 2023. The expenditure project codes for this grant have been provided by grant guidance and any and all expenditures will be coded using these expenditures codes. This should prevent any need for future journal entries moving forward. This process is an example of the systematic process that will be followed for all grants. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Findings and Questioned Costs – Major Federal Award Programs Audit Finding 2023-003 Material Weakness Federal Agency: U.S. Department of Education Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: 84.425 Education Stabilization Fund – Elementary and Secondary Education Compliance Requirements: B. Allowable Costs and L. Reporting Criteria: In accordance with 2 CFR part 200.302, the District is required to maintain financial management systems to trace funds to expenditures to establish that funds have been used according to Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system must provide for records that identify adequately the source and application of funds for federally-funded activities, among other conditions. The reporting of the federal expenditures should be supported by these records. Amounts may not be expended from project funds on an arbitrary basis. Thus, it is critical to have a process in place to regularly reconcile underlying financial records with the grant reports. This will also help ensure correct revenue is being reported and underlying costs in the financial records are supported. Statement of Condition: During the course of our audit, we noted that the District requested reimbursement for expenses that were not properly supported by the necessary project codes and source codes in the financial management system. The grant payment request for reimbursements for respective Federal grants were not reconciled to the District’s general ledger and the classification of expenditures did not agree to what was detailed on the grant payment request for reimbursements. Additionally, the calculation for allocating expenses and the journal entries made were not approved. The District must be able to specifically identify and provide support for every Federal expenditure that is reimbursed. Statement of Cause: Control procedures were not in place to reconcile the general ledger project codes to the grant payment request for reimbursement for the grant. The District failed to review expenses throughout the year to ensure transactions were properly classified. Controls were not in place to properly review expense allocations or journal entries. Statement of Effect: Without timely reconciliations and monitoring processes, grant expenditures can be omitted or overstated on submitted grant reports or other grant noncompliance can be overlooked. This could result in missed funding or noncompliance with grant agreements which could lead to adverse conditions with the grantors. Questioned Costs: No questioned costs. Perspective Information: This appears to be a systemic problem because after reviewing other grants received by the District, the correct project codes and source codes were not being properly utilized. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend that the District develop written procedures that require grant payment request for reimbursements and any other required reporting to be reconciled to the internal accounting records prior to report submission. The District must be able to specifically identify and provide support for every expenditure that is reimbursed. A review should be performed to ensure the expenditures are properly classified and allowable. This process should be attainable if each grant utilizes the proper project codes and sources codes as required by the grant agreements. The reconciliation should be monitored by someone not responsible for the recording and procedures should be put in place to ensure the reconciliation is being performed timely. Controls should be implemented for adjustments that need to be made to be reviewed by a person other than the one recording the adjustment. Evidence of reconciliations and reviews should be clearly identifiable. Views of Responsible Officials: The Hannibal School District received millions of one-time federal grant monies to assist with expenditures incurred as a result of the effects of the coronavirus pandemic. Although these funds were hugely helpful, minimal guidance was available. This is not a finding that has been presented to us in the past. The school district has received federal and state grants annually that are reconciled to the appropriate project codes and this process will be diligently followed as in prior years. For example, the district was awarded the Immediate Responses Services grant in Fall 2023. The expenditure project codes for this grant have been provided by grant guidance and any and all expenditures will be coded using these expenditures codes. This should prevent any need for future journal entries moving forward. This process is an example of the systematic process that will be followed for all grants. See Corrective Action Plan.
The Hannibal School District received millions of one-time federal grant monies to assist with expenditures incurred as a result of the effects of the coronavirus pandemic. Although these funds were hugely helpful, minimal guidance was available. This is not a finding that has been presented to us in the past. The school district has received federal and state grants annually that are reconciled to the appropriate project codes and this process will be diligently followed as in prior years. For example, the district was awarded the Immediate Responses Services grant in Fall 2023. The expenditure project codes for this grant have been provided by grant guidance and any and all expenditures will be coded using these expenditures codes. This should prevent any need for future journal entries moving forward. This process is an example of the systematic process that will be followed for all grants.
FAC accepted this audit on December 25, 2022 — management decision was due June 25, 2023.
FAC accepted this audit on January 3, 2022 — management decision was due July 3, 2022.
FAC accepted this audit on January 16, 2021 — management decision was due July 16, 2021.
FAC accepted this audit on June 4, 2020 — management decision was due December 4, 2020.
FAC accepted this audit on February 11, 2019 — management decision was due August 11, 2019.
FAC accepted this audit on March 26, 2018 — management decision was due September 26, 2018.
FAC accepted this audit on December 27, 2016 — management decision was due June 27, 2017.
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