Orleans Parish School BoardLocal Government

2024-006: Timely Filing of the Federal Data Collection Questioned Costs: N/A Criteria: The United States General Services Administration (GSA) is designated as the administrator of the Federal Audit Clearinghouse (FAC) for the receipt of Single Audit Reports from state and local governments, and not for profit organizations. In this capacity, the GSA serves as the central collection point and repository for audit reports prepared and submitted under provisions of the Single Audit Act of 1984 (amended in 1996), and Uniform Guidance. States, local governments, Indian Tribes or Tribal Organizations, institutions of higher education (IHEs), and nonprofit organizations that annually expend $750,000 or more in federal awards must perform a Single Audit and complete Form SFSAC for every fiscal period during which they meet the reporting dollar threshold. Without any waivers, the report is due no later than nine months after an entity’s year end. Condition: The School Board did not file the single audit report with the Federal Audit Clearinghouse in the timeline established by regulation. Cause: Turnover in the chief financial officer position, and turnover by other key individuals responsible for payroll, grants, revenue, and expenditures processes during the year delayed the completion of various reconciliations. Additionally, a delay occurred that resulted from discrepancies between Ad Valorem taxes collected and distributed between the City of New Orleans and the School Board. Combined, these elements caused a lack of ability to provide sufficient single audit documentation and the report being delayed. Effect: The lack of timely filing may result in delays or denial of federal grant assistance. Recommendation: The School Board should strengthen its controls including its review and approval processes over the information and balances that are accumulated and used in connection with the Federal Data Collection Form necessary to meet filing requirements. View of Responsible Official: Management agrees with the reported finding. See Management’s Corrective Action Plan.

2024-007: Preparation of the Schedule of Expenditures of Federal Awards Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) to include an accurate reporting of federal awards expended based on the terms and conditions of the grants. For the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Condition: The SEFA prepared by the School Board’s personnel did not properly report the correct amount of the federal awards expended for the Federal programs administered by the School Board. The amount of expenditures reported included the grant award amounts and not the federal expenditure amounts of these programs. Cause: A formal review of the SEFA by an individual not involved in the preparation of the schedule of expenditure of federal awards was not performed. Effect: The SEFA provided to us did not contain the correct amounts of expenditures for federal awards incurred during the fiscal year which is the basis used to determine the major federal programs to be audited in a fiscal year. Major programs selected and tested by the auditor may be incorrect and result in additional costs to the School Board for any revisions and testing of additional programs. Recommendation: The School Board should strengthen its controls including its review and approval processes over the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal costs. View of Responsible Official: Management agrees with the reported finding. See Management’s Corrective Action Plan.

2021-006: Preparation of the Schedule of Expenditures of Federal Awards Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) to include an accurate reporting of federal awards expended based on the terms and conditions of the grants. For the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Condition: The SEFA prepared by the School Board?s personnel did not properly report the correct amount of the federal awards expended for the Federal programs administered by the School Board. The amount of expenditures reported included the grant award amounts and not the federal expenditure amounts of these programs. This is a repeat finding from the prior year. Cause: A formal review of the SEFA by an individual not involved in the determination of the federal awards reported was not performed. Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year. Recommendation: The School Board should strengthen its controls including its review and approval processes over the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal costs. View of Responsible Official: Grants management responsibilities and the coordination with accounting staff has been changed including process management as well as organizational structures. The SEFA schedule will be reviewed by the Comptroller and the Chief Financial Officer prior to issuance in order to verify expenditures as well as ensure any claims outstanding have been properly recorded and accrued. Changes made in the FY20 audit to individual grants and the timing of the issuance of the FY20 audit did not allow for proper review and analysis of each grant.

2020?007: Preparation of the Schedule of Expenditures of Federal AwardsQuestioned Costs: N/ACriteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) to include an accurate reporting of federal awards expended based on the terms and conditions of the grants. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA.Condition: The SEFA prepared by the School Board?s personnel did not properly report the correct amount of the federal awards expended for the Federal programs administered by the School Board. The amount of expenditures reported included the grant award amounts and not the federal expenditure amounts of these programs.Cause: A formal review of the SEFA by an individual not involved in the determination of the federal awards reported was not performed.Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year.Recommendation: The School Board should strengthen its controls including its review and approval processes over the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal costs.View of Responsible Official: The grant staff as well as accounting staff will be trained on the proper accounting of charter school expenses and reimbursements through the claim process as well as year-end accruals in order to properly state the expenditure of federal awards and not the allocation amount of federal awards. Year-end close out processes support the determination of fiscal year status for those grants whose program period do not align with the OPSB fiscal year.

2020?008: Internal Controls over the Reconciliation of Federal Expenditures to the Appropriate Funding Sources and Reports SubmittedQuestioned Costs: N/ACriteria: The 2 CFR section 200.303 of Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The 2 CFR section 200.514 requires auditors to obtain an understanding of the non-federal entity?s internal control over federal programs sufficient to plan the audit to support a low assessed level of control risk of noncompliance for major programs, and, unless internal control is likely to be ineffective, plan the testing of internal control over major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program and perform testing of internal control as planned. The objectives of internal control over compliance as found in 2 CFR section 200.62, are as follows:1. Transactions are properly recorded and accounted for in order to: a) Permit the preparation of reliable financial statements and federal reports; b) Maintain accountability over assets; and c) Demonstrate compliance with federal statutes, regulations, and the terms and conditions of the federal award;2. Transactions are executed in compliance with: a) Federal statutes, regulations, and the terms and conditions of the federal award that could have a direct and material effect on a federal program; and the applicable compliance supplement b) Any other federal statutes and regulations that are identified in the Compliance Supplement; and3. Funds, property, and other assets are safeguarded against loss from unauthorized use or disposition.Condition: While testing a sample of expenditures recorded in the fund which tracks the use of disaster assistance grant funding, it was noted that some of these expenditures were to be reimbursed from other federal or local sources based on reports maintained by the School Board?s outsourced grant administrator. A reconciliation of costs maintained by the grants administrator and the general ledger is not being performed. Our testing did not disclose any non-compliance with respect to amounts submitted for reimbursements during the fiscal year.Cause: Accounting personnel were not properly trained in monthly reconciliation procedures to ensure expenditures were classified to the correct fund.Effect: Financial reports prepared were not accurate. This misclassification of expenditures prevented a timely reconciliation of fund account detail to reports submitted. A material adjustment was necessary to properly state several funds of the School Board including the Hurricane Katrina Fund and two other capital project funds.Recommendation: The School Board should strengthen its controls including its review and approval processes over the information and balances that are accumulated and reported by the grants administrator to make sure the expenditures reported are an accurate representation of federal costs recorded in the appropriate fund, and a reconciliation of reports submitted for reimbursement are correct.View of Responsible Official: Accounting procedures will include a monthly close process that includes the review of funds to ensure proper recording of expenditures. This monthly process will also assist in the year end close process. Accounting staff and operations staff functioning as grant administrators will communicate regularly on the reconciliation of funds in order to ensure proper classification of revenues and expenditures within each fund.