MCCORMICK COUNTY SCHOOL DISTRICT

Federal Agency: U.S. Department of Education Pass-Through Agency: South Carolina Department of Education IDEA Cluster: CFDA #?s 84.027 and 84.173 Pass-Through Grantor?s Award Numbers and Years: 2020 H63010100920; 2020 H63010100820; 2021 H63010100921; 2021 H63010100821 FAIN: H027A190081; H173A190085; H027A200081; H173A200085 Repeat Comment from Prior Year? Yes 2021-002: PROCUREMENT, SUSPENSION AND DISBARMENT The District did not operate in accordance with its policies and procedures. During our testing, there were many instances where a purchase order was not issued or approved in a timely manner before making a purchase for the IDEA program. All expenditures for this program should be processed according to the District?s purchasing policies. In performing our compliance testing, we noted twelve transactions where the purchase order was not approved by the Superintendent in a timely manner as required by the District?s procurement policies and procedures. We also noted three transactions that did not have an approved purchase order as required by the District?s procurement policies and procedures. We recommend that the District operate according to the procedures and controls as documented in its Accounting Procedures Manual and Procurement Code. The District held a training for its staff to remind them of the District?s purchasing policies and procedures and will continue to reinforce the need for staff to follow the District?s procurement policies and procedures.

Federal Agency: U.S. Department of Education Pass-Through Agency: South Carolina Department of Education IDEA Cluster: CFDA #?s 84.027A and 84.173A Pass-Through Grantor?s Award Numbers and Years: 2020 H63010100920; H63010100820 Repeat Finding from Prior Year? Yes 2020-004: ALLOWABLE COSTS (PAYROLL AND NON-PAYROLL DISBURSEMENTS) Certain expenditures for this program had been paid but had not been approved by the Superintendent and / or the IDEA Director until after they had been submitted for reimbursement and the claim amount had been received by the District. All expenditures for this program should be reviewed and approved by appropriate District personnel prior to being claimed for reimbursement. In performing our compliance testing, we noted five non-payroll disbursements and 1 payroll disbursement that had not been approved by the Superintendent and / or IDEA Director until after the transactions had been submitted for reimbursement and the claim amount had been received. All of these transactions appeared to be adequately supported and properly charged to this program, so no questioned costs were reported. We recommend that the District implement procedures and controls to ensure that only expenditures as allowable by the SDE are charged to this program by ensuring timely approval of expenditures. The District concurs. The District is looking into reviewing several accounting policies and roles to ensure all expenditures are appropriately approved in a timely manner.

Federal Agency: U.S. Department of Education Pass-Through Agency: South Carolina Department of Education IDEA Cluster: CFDA #?s 84.027 and 84.173 Pass-Through Grantor?s Award Numbers and Years: 2020 H63010100920; H63010100820 Repeat Comment from Prior Year? No 2020-005: PROCUREMENT, SUSPENSION AND DISBARMENT The District did not have procurement policies and procedures in place at the beginning of the year, and when policies and procedures were established halfway through the year, the District did not operate in accordance to its policies and procedures. During our testing, there were many instances where a purchase order was not issued or approved in a timely manner before making a purchase for the IDEA program. All expenditures for this program should be processed according to the District?s purchasing policies. In performing our compliance testing, we noted eight transactions where the purchase order was not approved by the Superintendent in a timely manner as required by the District?s procurement policies and procedures. We also noted seven transactions that did not have an approved purchase order as required by the District?s procurement policies and procedures. We recommend that the District implement procedures and controls to verify that they will not enter into transactions without following procurement policies and procedures. The District concurs and will implement and follow the District?s procurement policies and procedures.

Federal Agency: U.S. Department of Education Pass-Through Agency: South Carolina Department of Education Title I: CFDA #?s 84.010 and 84.010A Pass-Through Grantor?s Award Numbers and Years: 2020 H63010100120 Repeat Finding from Prior Year? No 2020-006: ALLOWABLE COSTS (PAYROLL AND NON-PAYROLL DISBURSEMENTS) Certain expenditures for this program had been paid but had not been approved by the Superintendent and / or the Title I Director until after they had been submitted for reimbursement and the claim amount had been received by the District. All expenditures for this program should be reviewed and approved by appropriate District personnel prior to being claimed for reimbursement. In performing our compliance testing, we noted three non-payroll disbursements and 1 payroll disbursement that had not been approved by the Superintendent and / or Title I Director until after the transactions had been submitted for reimbursement and the claim amount had been received. All of these transactions appeared to be adequately supported and properly charged to this program, so no questioned costs were reported. We recommend that the District implement procedures and controls to ensure that only expenditures as allowable by the SDE are charged to this program by ensuring timely approval of expenditures. The District concurs. The District is looking into reviewing several accounting policies and roles to ensure all expenditures are appropriately approved in a timely manner.

PRIOR YEAR DATA COLLECTION FORM: During our audit of the School District we noted the prior year (fiscal year 2018) data collection form and prior year (fiscal year 2018) audit had not been uploaded to the Federal Audit Clearing House (?FAC?) within the nine-month time window after that fiscal year end. The data collection form and the audit should be submitted to the FAC within nine-months after the year end date. A lack of understanding related to requirements regarding federal funding. We recommend that the District personnel improve their understanding of requirements regarding federal funding and ensure the data collection form and audit is submitted to the FAC within the allowable time frame. The District concurs and will improve their understanding to ensure no future requirements and due dates are not met.

Federal Agency: U.S. Department of Education Pass-Through Agency: South Carolina Department of Education IDEA Cluster: CFDA #?s 84.027 and 84.173 Pass-Through Grantor?s Award Numbers and Years: 2018 H027A180081; H6304520 Repeat Finding from Prior Year? No ALLOWABLE COSTS (NON-PAYROLL DISBURSEMENTS): Certain expenditures for this program had not been approved by the Superintendent and / or the IDEA Director until after they had been submitted for reimbursement and the claim amount had been received by the District. All expenditures for this program should be reviewed and approved by appropriate District personnel prior to being claimed for reimbursement. In performing our compliance testing, we noted four non-payroll disbursements that had not been approved by the Superintendent and / or IDEA Director until after the transactions had been submitted for reimbursement and the claim amount had been received. All of these transactions appeared to be adequately supported and properly charged to this program, so no questioned costs were reported. We recommend that the District implement procedures and controls to ensure that only expenditures as allowable by the SDE are charged to this program. The District concurs. The District is looking into reviewing several accounting policies and roles to ensure all expenditures are appropriately approved in a timely manner.

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