Bayfield School DistrictLocal Government

Eligibility Material Weakness, Internal Control Over Compliance Criteria: The Child Nutrition Cluster programs provide food related benefits to eligible children in public and summer programs. The District is responsible for determining the eligibility program participants based on the program requirements. Condition and Cause: The District did not have documented internal controls over the eligibility determinations for the period under audit. Effect: The District may not timely detect errors in eligibility determinations for program participants Questioned Costs: None Context: 60 participant eligibility determination were reviewed. Identification As A Repeat Finding: N/A Recommendation: We recommend that District management ensure effective internal controls are consistently documented. Views Of Responsible Officials And Planned Corrective Action: The District agrees with the finding and has put together a correction action plan for the finding. See corrective action plan included in this report.

Material Weakness, Inaccurate Schedule Of Expenditures Of Federal Awards (The SEFA) Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of a SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. The District is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The initial SEFA was inaccurate, which led to errors in reporting federal awards. The District incorrectly reported expenditures within two programs totaling $220,070 that were in excess of actual expenditures. Cause: The District did not have adequate training and oversight in place for accounting staff to ensure its SEFA was prepared in accordance with federal requirements. The District received new sources of federal funding, and the preparer and reviewer were not familiar with federal requirements and the guidance for the SEFA; this resulted in the errors noted above. Effect: As a result of the errors, the SEFA was materially incorrect. Inaccurate identification of federal awards may also result in inaccurate identification of compliance requirements, risk assessments, major program determination, materiality determinations and reporting errors. Questioned Costs: None Context: N/A Identification As A Repeat Finding: N/A Recommendation: The District should strengthen its internal controls by implementing additional training and oversight of personnel to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: The District agrees with the finding and has put together a correction action plan for the finding. See corrective action plan included in this report.

Finding 2020-001 Allowable Costs And Cost Principles, Allowable Activities And Period Of Performance Significant Deficiency, Internal Control Over Compliance CFDA 21.019 - Coronavirus Relief Funds Federal Agency: U.S. Department of Treasury Pass-Through Entity: Colorado Department of Education Criteria Or Specific Requirement: Certain costs and activities are considered allowable if they are incurred during the period of performance as outlined in the grant agreement and related Uniform Guidance. Each activity and expenditure that is paid for using federal funds must be considered allowable and be within the period of performance in accordance with the guidance outlined within grant agreement and Uniform Guidance. The District is expected to have internal controls over the expenditure process that ensures only allowable costs and activities for the specified period of performance are allocated to federal funds. Condition: The District, did not have consistently documented internal controls over allowable costs and activities for the specified period of performance by the grant. There was partially documented evidence of internal controls over the expenditure review process within the 60 transactions tested. Cause: A documented review process was not consistently in place during the year ended June 30, 2020. Effect: Due to insufficient monitoring and internal controls over compliance, the District may not timely detect an error in allowable costs and activities determinations and may incur unallowable expenditures which would be required to be funded with funds other than federal funds. Questioned Costs: Not applicable Context: A nonstatistical sample of 60 transactions was selected for testing. Identification As A Repeat Finding: N/A Recommendation: We recommend that the program management ensure that effective internal controls are effectively designed and consistently documented. Views Of Responsible Officials And Planned Corrective Action: The District agrees with the finding and has created a corrective action plan for the finding. See the corrective action plan included in this report.