USD #449, Easton, KansasLocal Government

2022-001 Preparation of and Internal controls over Schedule of Expenditures of Federal Awards -(Material Weakness) Federal Agency: U.S Department of Education Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555 and 10.559 Award Period: June 30, 2022 Criteria: According to 2 CFR 200, Subpart F, the District is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with §200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended June 30, 2022. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule by the District, as required by Uniform Guidance. Cause: The District’s policies and procedures were not designed to ensure the District’s preparation of the schedule in conformity with Uniform Guidance. Effect: The District did not prepare the schedule in conformity with Uniform Guidance. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Education and management review the financial reporting process. Once this review is complete, the District should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure that the District prepares the schedule conformity with Uniform Guidance. Questioned Costs: None. Repeat Finding: No. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the District’s preparation of the schedule as required by Uniform Guidance.

2022-002 Reporting to the Federal Audit Clearinghouse (Material Weakness) Federal Agency: U.S Department of Education Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555 and 10.559 Award Period: June 30, 2022 Criteria: According to 2 CFR 700, Subpart F the District must submit, the audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse within 30 days after receipt of the auditor's report or nine months after the end of the fiscal year —whichever comes first. Condition: Audit tests revealed that required submission of the audit package and the data collection form was not submitted to the Federal Audit Clearinghouse for the audit of fiscal year ended June 30, 2022 in a timely manner. Cause: Proper internal controls were not in place to ensure that audit package and data collection form was submitted to the Federal Audit Clearinghouse within the required timeline for the audit of fiscal year ended June 30, 2022. Effect: The Organization’s lack of proper internal control over the timely submission of the audit package and data collection forms to the Federal Audit Clearinghouse. Recommendation: We recommend that the District implement internal control procedures that will ensure timely submission of the audit package and data collections form to the Federal Audit Clearinghouse within the required timeline. Questioned Costs: None. Repeat Finding: No. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement procedures that will ensure timely submission of the audit package and data collection form to the Federal Audit Clearinghouse.