EIN: 830212875
UEI: QU7AFTEKUJK8
Audited by: CARVER FLOREK & JAMES, CPA'S
Oversight agency: 84 [Department of Education]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 9, 2025. 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 June 9, 2026 (83 days ago).
What is a management decision? →FAC accepted this audit on November 25, 2024 — management decision was due May 25, 2025.
FAC accepted this audit on December 4, 2023 — management decision was due June 4, 2024.
During our sample testing of 34 transactions for allowable costs and proper internal controls, we noted there was a lack of documentation of internal controls processes in place over compliance. For credit card charges and other expenditures, we found 11 of 34 transactions tested, did not have pre-authorized purchase order approval, prior to the charge. Questioned Costs: None. Cause: Insufficient staffing and training to ensure proper protocols are followed seems to be the main cause of this finding. Effect: Without proper internal controls, there is greater risk of unallowable expenditures being charged to the grant. Allowable costs could be charged to federal awards with reasonable assurance of compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recommendation: We recommend that the District continue to work on implementation of expenditure controls at all school levels before the expenditure is submitted to the accounting department for payment execution.
Show full finding ▾Hide full finding ▴2023-002 - Expenditure Controls - Significant Deficiency Compliance Requirement: Allowable Costs and Cost Principles ALN: 84.425 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our sample testing of 34 transactions for allowable costs and proper internal controls, we noted there was a lack of documentation of internal controls processes in place over compliance. For credit card charges and other expenditures, we found 11 of 34 transactions tested, did not have pre-authorized purchase order approval, prior to the charge. Questioned Costs: None. Cause: Insufficient staffing and training to ensure proper protocols are followed seems to be the main cause of this finding. Effect: Without proper internal controls, there is greater risk of unallowable expenditures being charged to the grant. Allowable costs could be charged to federal awards with reasonable assurance of compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recommendation: We recommend that the District continue to work on implementation of expenditure controls at all school levels before the expenditure is submitted to the accounting department for payment execution.
2023-002 - Expenditure Controls - Significant Deficiency The District agrees that while significant progress has been made in this area, there is still work to do regarding the pre-authorization of purchases. The Business Manager has held meetings with each building and department individually to communicate proper procedures. She has also issued All Staff emails outlining these procedures and referencing board policy supporting these practices. Proper procurement procedure instructions are also available via video through a link on the Business Office Department page of the District website for reference. We recognize that proper training is imperative to compliance in all departments and the Business Office will continue to provide training throughout the year, with an emphasis in departments with new staff.
While detail testing found no unallowed costs, without written policies addressing the verification of vendor suspensions or debarment, vendors could be debarred or suspended that are paid under Federal contracts. The School District could not provide documentation that vendors paid - were verified through SAMS.gov for debarment or suspension. Effect: The School District must use funds as required under the Federal Award guidelines under Uniform Guidance to prevent mismanagement of projects funded by Federal Awards. Questioned Costs: None. Recommendation: We recommend that the Board of Trustees and School Officials review Financial Internal Control Policies and ensure that Uniform Guidance policies are incorporated for Federal Grant Expenditures. These policies be reviewed with Federal Grant Award Guidelines.
Show full finding ▾Hide full finding ▴2023-003 Procurement SAMS.gov - Significant Deficiency ALN: 84.425 Criteria: Uniform Guidance policies, 2 CRF Part 180, states written policies and procedures related to internal controls be written and documented in regard to SAMS.gov vendor verification of debarment and suspension. Cause: The School District does not have internal control Federal written updated policies implementing Debarment and Suspension. Condition: While detail testing found no unallowed costs, without written policies addressing the verification of vendor suspensions or debarment, vendors could be debarred or suspended that are paid under Federal contracts. The School District could not provide documentation that vendors paid - were verified through SAMS.gov for debarment or suspension. Effect: The School District must use funds as required under the Federal Award guidelines under Uniform Guidance to prevent mismanagement of projects funded by Federal Awards. Questioned Costs: None. Recommendation: We recommend that the Board of Trustees and School Officials review Financial Internal Control Policies and ensure that Uniform Guidance policies are incorporated for Federal Grant Expenditures. These policies be reviewed with Federal Grant Award Guidelines.
The District has policies in place to ensure vendors paid under Federal contracts are not subject to debarment or suspension. Policy EFAB - DJ/DJA/DJB outlines these requirements. As of 11/10/2023, the District has taken corretive action regarding this finding by utilizing a custom field within our accounting software. Each vendor now contains a SAM.GOV VERIFICATION field where the Accounting Technician will note the date the vendor was verified along with their initials. This will be updated annually. If the vendor does not have a Unique Entity ID on SAM.gov, the Accounting Technician will utilize the Certification Regarding Debarment, Suspension, Ineligibility And Voluntary Exclusion contained in Policy EFAB-E(2).
FAC accepted this audit on December 19, 2022 — management decision was due June 19, 2023.
2022-004 ? Expenditure Controls ? Material Weakness Compliance Requirement: Allowable Costs and Cost Principles ALN: 84.425 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition / Context: During our sample testing of 25 transactions for allowable costs and proper internal controls, we noted there was a lack of documentation of internal controls processes in place over compliance. For credit card charges and other expenditures, we found 17 of 25 transactions tested, did not have pre-authorized purchase order approval, prior to the charge. Additionally, we found that 4 of 25 transactions tested, were only supported by a quote and not an actual invoice. Furthermore, we were unable to trace 9 of 25 transactions to the authorized board minutes. Questioned Costs: None. Cause: Insufficient staffing and training to ensure proper protocols are followed seems to be the main cause of this finding. Effect: Without proper internal controls, there is greater risk of unallowable expenditures being charged to the grant. Allowable costs could be charged to federal awards with reasonable assurance of compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recommendation: We recommend that the District continue to work on implementation of expenditure controls at all school levels before the expenditure is submitted to the accounting department for payment execution. Furthermore, the District should improve the organization of supporting documentation for all expenditures and care should be taken to ensure all payments are approved by the School Board listing for approval. Corrective actions: Please see the last page for management?s response as prepared on District letterhead.
Show full finding ▾Hide full finding ▴2022-004 ? Expenditure Controls ? Material Weakness Compliance Requirement: Allowable Costs and Cost Principles ALN: 84.425 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition / Context: During our sample testing of 25 transactions for allowable costs and proper internal controls, we noted there was a lack of documentation of internal controls processes in place over compliance. For credit card charges and other expenditures, we found 17 of 25 transactions tested, did not have pre-authorized purchase order approval, prior to the charge. Additionally, we found that 4 of 25 transactions tested, were only supported by a quote and not an actual invoice. Furthermore, we were unable to trace 9 of 25 transactions to the authorized board minutes. Questioned Costs: None. Cause: Insufficient staffing and training to ensure proper protocols are followed seems to be the main cause of this finding. Effect: Without proper internal controls, there is greater risk of unallowable expenditures being charged to the grant. Allowable costs could be charged to federal awards with reasonable assurance of compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recommendation: We recommend that the District continue to work on implementation of expenditure controls at all school levels before the expenditure is submitted to the accounting department for payment execution. Furthermore, the District should improve the organization of supporting documentation for all expenditures and care should be taken to ensure all payments are approved by the School Board listing for approval. Corrective actions: Please see the last page for management?s response as prepared on District letterhead.
SECTION III - FEDERAL AWARDS FINDINGS 2022-004 - Expenditure Controls - Material Weakness The business office was recently restructured and changes will take effect starting January 1, 2022. With the changes taking effect, the business office has spread out the duties and responsibilities for managing transactions controls. Specifically, purchases will be required to go through the requisition process and be approved prior to purchases being made. This process has already been initiated but will be further emphasized in the coming year. Kathy Groh - federal grant financial manager, Chauncy Johnson - Outgoing business manager, and Jessica Benefiel - incoming business manager will oversee these changes and ensure compliance in purchasing procedures.
FAC accepted this audit on December 9, 2021 — management decision was due June 9, 2022.
Segregation of duties was not met at all times due to the small size of the Entity. Recommendation: Many aspects of internal controls rely upon adequate segregation of duties. Segregation of duties provides that one individual not be able to handle or dominate transactions from initiation to posting and/or have access to both assets and the accounting records. Due to the small size of the District?s administrative staff, it is not practical for them to maintain adequate segregation of duties. For the financial statements, I believe this is a significant deficiency. For Federal funds, including major programs, the State of Wyoming Department of Education provides controls on the release of funds and review of activity sufficient for this condition to not be as significant deficiency in reference to Federal Awards. Although there is not cost effective features that may eliminate this condition, I feel that management, Board, and other agency review of activity reduces the risk. Current Status Segregation of Duties has been and will continue to be a significant deficiency repeated as 2021-001
Show full finding ▾Hide full finding ▴Finding 2021-001: Segregation of Duties Statement of Condition: Segregation of duties was not met at all times due to the small size of the Entity. Recommendation: Many aspects of internal controls rely upon adequate segregation of duties. Segregation of duties provides that one individual not be able to handle or dominate transactions from initiation to posting and/or have access to both assets and the accounting records. Due to the small size of the District?s administrative staff, it is not practical for them to maintain adequate segregation of duties. For the financial statements, I believe this is a significant deficiency. For Federal funds, including major programs, the State of Wyoming Department of Education provides controls on the release of funds and review of activity sufficient for this condition to not be as significant deficiency in reference to Federal Awards. Although there is not cost effective features that may eliminate this condition, I feel that management, Board, and other agency review of activity reduces the risk. Current Status Segregation of Duties has been and will continue to be a significant deficiency repeated as 2021-001
Hot Springs County School District NO 1"Re: Responses to the 2020-2021 Schedule of Findings and Questioned Costs Dear Debra Raugutt, CPA: The following are HSCSD#l's responses to the 2020-2021 Schedule of Findings and Questioned Costs. They are listed per finding using your numbering system. Finding 2021-001 Segregation of Duties We acknowledge that with our small fiscal staff it is difficult to maintain the strict separation of duties that would ensure the least amount of risk. We will make every effort to follow procedures and monitor financial activity to maintain security for our financial assets. We provide monthly reports to the board for review and answer any inquiries that arise from board members in order to provide the highest level transparency possible. The board also maintains and updates fiscal policies to be followed by the business office. Please let me know if you need further clarification regarding these responses. Sincerely, Chauncy Johnson, Business Manager
2020-001
FAC accepted this audit on January 13, 2021 — management decision was due July 13, 2021.
Finding 2020-001 Segregation of Duties Criteria An effective internal control structure of an entity will include policies and procedures to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the entity?s policies, procedures, and statutory requirements. 3. Evaluate and performance of personnel to promote efficient operations 4. Ensure accurate and reliable operating and accounting data. One of the primary requirement of an effective system of internal control is the segregation of duties. Segregation of duties provides that one individual not be able to handle transactions from initiation to posting and/or have access to both assets and the accounting records. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an entity separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being detected on a timely basis. Segregation of duties is a deterrent to fraud as the conduct of fraudulent activity would require collusion with another person to accomplish it. Condition The District employs a full-time Business Manager and three assistants. This level of staffing does not include sufficient personnel to achieve adequate segregation of duties at all times. Cause Due to the size of your entity as measure by the scope, volume, and complexity of the entity?s activities and financial transactions, it is not practical for you to employ sufficient staff to maintain and adequate segregation of duties. Effect The potential effect of the internal control deficiency is an increase in risk of fraud and undetected errors in the processing of financial transactions. Recommendations The Board must formulate oversight policies and procedures and perform them conscientiously to mitigate the risk of lack of segregation of duties.
Show full finding ▾Hide full finding ▴Finding 2020-001 Segregation of Duties Criteria An effective internal control structure of an entity will include policies and procedures to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the entity?s policies, procedures, and statutory requirements. 3. Evaluate and performance of personnel to promote efficient operations 4. Ensure accurate and reliable operating and accounting data. One of the primary requirement of an effective system of internal control is the segregation of duties. Segregation of duties provides that one individual not be able to handle transactions from initiation to posting and/or have access to both assets and the accounting records. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an entity separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being detected on a timely basis. Segregation of duties is a deterrent to fraud as the conduct of fraudulent activity would require collusion with another person to accomplish it. Condition The District employs a full-time Business Manager and three assistants. This level of staffing does not include sufficient personnel to achieve adequate segregation of duties at all times. Cause Due to the size of your entity as measure by the scope, volume, and complexity of the entity?s activities and financial transactions, it is not practical for you to employ sufficient staff to maintain and adequate segregation of duties. Effect The potential effect of the internal control deficiency is an increase in risk of fraud and undetected errors in the processing of financial transactions. Recommendations The Board must formulate oversight policies and procedures and perform them conscientiously to mitigate the risk of lack of segregation of duties.
:Hot Springs County School District # 1 415 Springview Thermopolis, Wyoming 82443 Business Office 307-864-6580 cjohnson@holsprings1.org December 14, 2020 Debra Raugutt, LLC 90 Valley Drive Casper, WY 82604 Re: Responses to the 2019-2020 Federal Awards Findings Dear Debra Raugutt, CPA: The following are HSCSD#l's responses to the 2019-2020 Federal Awards Deficiencies. They are listed per finding using your numbering system. Finding 2020-001 Segregation of Duties We acknowledge that with our small fiscal staff it is difficult to maintain the strict separation of duties that would ensure the least amount of risk. We will make every effort to follow procedures and monitor financial activity to maintain security for our financial assets. We provide monthly reports to the board for review and answer any inquiries that arise from board members in order to provide the highest level transparency possible.
2019-001
FAC accepted this audit on January 15, 2020 — management decision was due July 15, 2020.
LAC Criteria An effective internal control structure of an entity will include policies and procedures to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the entity?s policies, procedures, and statutory requirements. 3. Evaluate and performance of personnel to promote efficient operations 4. Ensure accurate and reliable operating and accounting data. One of the primary requirement of an effective system of internal control is the segregation of duties. Segregation of duties provides that one individual not be able to handle transactions from initiation to posting and/or have access to both assets and the accounting records. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an entity separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being detected on a timely basis. Segregation of duties is a deterrent to fraud as the conduct of fraudulent activity would require collusion with another person to accomplish it. Condition The District employs a full-time Business Manager and three assistants. This level of staffing does not include sufficient personnel to achieve adequate segregation of duties at all times. Cause Due to the size of your entity as measure by the scope, volume, and complexity of the entity?s activities and financial transactions, it is not practical for you to employ sufficient staff to maintain and adequate segregation of duties. Effect The potential effect of the internal control deficiency is an increase in risk of fraud and undetected errors in the processing of financial transactions. Recommendations The Board must formulate oversight policies and procedures and perform them conscientiously to mitigate the risk of lack of segregation of duties. Views of Responsible Officials and Planned Corrective Actions See attached letter of response beginning on page 61. K OF SEGRETATION OF DUTIES
Show full finding ▾Hide full finding ▴LAC Criteria An effective internal control structure of an entity will include policies and procedures to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the entity?s policies, procedures, and statutory requirements. 3. Evaluate and performance of personnel to promote efficient operations 4. Ensure accurate and reliable operating and accounting data. One of the primary requirement of an effective system of internal control is the segregation of duties. Segregation of duties provides that one individual not be able to handle transactions from initiation to posting and/or have access to both assets and the accounting records. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an entity separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being detected on a timely basis. Segregation of duties is a deterrent to fraud as the conduct of fraudulent activity would require collusion with another person to accomplish it. Condition The District employs a full-time Business Manager and three assistants. This level of staffing does not include sufficient personnel to achieve adequate segregation of duties at all times. Cause Due to the size of your entity as measure by the scope, volume, and complexity of the entity?s activities and financial transactions, it is not practical for you to employ sufficient staff to maintain and adequate segregation of duties. Effect The potential effect of the internal control deficiency is an increase in risk of fraud and undetected errors in the processing of financial transactions. Recommendations The Board must formulate oversight policies and procedures and perform them conscientiously to mitigate the risk of lack of segregation of duties. Views of Responsible Officials and Planned Corrective Actions See attached letter of response beginning on page 61. K OF SEGRETATION OF DUTIES
Finding 2019-001 Segregation of Duties We acknowledge that with our small fiscal staff it is difficult to maintain the strict separation of duties that would ensure the least amount of risk. We will make every effort to follow procedures and monitor financial activity to maintain security for our financial assets. We provide monthly reports to the board for review and answer any inquiries that arise from board members in order to provide the highest level transparency possible.
2018-001
FAC accepted this audit on January 21, 2019 — management decision was due July 21, 2019.
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2010-001
FAC accepted this audit on March 28, 2018 — management decision was due September 28, 2018.
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2010-001
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2015-002
FAC accepted this audit on February 26, 2017 — management decision was due August 26, 2017.
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2010-001
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2015-002
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