EIN: 926000703
UEI: HA8LNJG2J6C9
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 10, 2024. 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 10, 2025 (443 days ago).
What is a management decision? →Finding 2024-002 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Elementary-Secondary School Emergency Relief Programs ALN: 84.425 Pass-through Award Number: ER 24.HGSD.01 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: The District was unable to provide supporting documentation for all credit card transactions charged to the grant. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs are $10,611. This is the total balance of purchases made on the district’s credit card charged to the grant. Repeat Finding: Yes, this is a repeat of Finding 2023-004. Since this is a repeat finding, we believe this to be a systemic issue. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding 2024-002 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Elementary-Secondary School Emergency Relief Programs ALN: 84.425 Pass-through Award Number: ER 24.HGSD.01 Award Years: 2024 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: The District was unable to provide supporting documentation for all credit card transactions charged to the grant. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs are $10,611. This is the total balance of purchases made on the district’s credit card charged to the grant. Repeat Finding: Yes, this is a repeat of Finding 2023-004. Since this is a repeat finding, we believe this to be a systemic issue. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2024-002 Lack of Internal Control / Noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Name of Contact: Elena Begojevic, Business Manager Corrective Action Plan: Management will ensure that the system of internal controls over cash disbursements is designed appropriately and operates effectively to ensure all transactions are coded, reviewed, and approved before payment is made. The Business manager and the Superintendent will conduct a review of claims to determine whether they are proper and valid charges. Once reviewed, all transactions will be authorized. DocuSign will be used for electronic signature approval. The accounts payable clerk will ensure that all transactions include copies of receipts for the goods or services purchased. Finally, the Finance department will work with the program directors to ensure that expenses are coded accurately and within a reasonable timeframe to allow for timely submission of grant reports. Proposed Completion Date: Fiscal Year 2025
2023-004
FAC accepted this audit on May 7, 2024 — management decision was due November 7, 2024.
Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We selected a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 17 of these transactions. We also selected a sample of 11 expenditures transactions for ALN 84.299. The District did not provide supporting documentation for 8 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 2 payroll transactions for ALN 84.184 and 9 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. This is a repeat finding of 2022-008. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs for ALN 84.184 are $35,226 and known quested costs for ALN 84.299 are $126,821 due to no supporting documentation provided. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or Material Weakness Unallowed and Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We selected a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 17 of these transactions. We also selected a sample of 11 expenditures transactions for ALN 84.299. The District did not provide supporting documentation for 8 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 2 payroll transactions for ALN 84.184 and 9 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. This is a repeat finding of 2022-008. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Known questioned costs for ALN 84.184 are $35,226 and known quested costs for ALN 84.299 are $126,821 due to no supporting documentation provided. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and adequate support for transaction is maintained. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Federal Award Findings and Questioned Costs Finding 2023-004 Lack of Internal Control / Noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Name of Contact Person: Elena Begojevic, Business Manager Corrective Action Plan: Management will ensure that the system of internal controls over cash disbursements is designed appropriately and operates effectively to ensure all transactions are coded, reviewed, and approved before payment is made. The Business manager and the Superintendent will conduct a review of claims to determine whether they are proper and valid charges. Once reviewed, all transactions will be authorized. DocuSign will be used for electronic signature approval. Accounts payable clerk will ensure that all transactions include copies of receipts for the goods or services purchased. Finally, the Finance department will work with the program directors to ensure that expenses are coded accurately and within reasonable timeframe to allow for timely submission of grant reports. Proposed Completion Date: Fiscal Year 2024
Finding 2023-005 Lack of Internal Control / Noncompliance over Subrecipient Monitoring Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities ALN: 84.184 Award Numbers: S184G190154-23 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Subrecipient monitoring principles are defined in 2 CFR 200.400. Condition and Context: We selected 2 of the subrecipients that received pass thru funds. The District did not provide supporting documentation ensuring that adequate subreciepient monitoring activities were being followed. Cause: Lack of internal control over subrecipient monitoring. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the subrecipient is not allowed. Questioned Costs: Actual and likely questioned costs estimated to be above the reporting threshold of $25,000. Based on the auditor’s review of program expenditures provided by the District, we estimate that the amount charged by subrecipients to the District was $184,651. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and to ensure that subreipients are appropriately spending passed through federal money. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding 2023-005 Lack of Internal Control / Noncompliance over Subrecipient Monitoring Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities ALN: 84.184 Award Numbers: S184G190154-23 Award Years: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Subrecipient monitoring principles are defined in 2 CFR 200.400. Condition and Context: We selected 2 of the subrecipients that received pass thru funds. The District did not provide supporting documentation ensuring that adequate subreciepient monitoring activities were being followed. Cause: Lack of internal control over subrecipient monitoring. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the subrecipient is not allowed. Questioned Costs: Actual and likely questioned costs estimated to be above the reporting threshold of $25,000. Based on the auditor’s review of program expenditures provided by the District, we estimate that the amount charged by subrecipients to the District was $184,651. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed and to ensure that subreipients are appropriately spending passed through federal money. Management’s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-005 Lack of Internal Control / Noncompliance over Subrecipient Monitoring Name of Contact Person: Elena Begojevic, Business Manager Corrective Action Plan: HCSD established a Subrecipient Monitoring Checklist as a monitoring tool to ensure that subrecipients are successful and compliant and the subawards are used in accordance with federal statutes, regulations, and the terms and conditions of the federal and state awards. Proposed Completion Date: Fiscal Year 2024
Finding 2023-006 Lack of Internal Control / Noncompliance over Reporting Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: The School District is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end or by any Office of Management and Budget extended deadlines. Condition and Context: The Form SF-SAC for the fiscal year ended June 30, 2023 was not filed on time. Cause: The audit was not completed in time to file the form. This was due to a delay in closing the books and records as well as not timely remitting audit documentation to the audits. Effect: The District was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: No Recommendation: We recommend the District implement internal control procedures to ensure timely closing of books and records to ensure timely submission of the Form SF-SAC in the future. Management’s Response: Management concurs with this finding. See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2023-006 Lack of Internal Control / Noncompliance over Reporting Material Weakness Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S184G190154-23 and S299A180025-21 Award Years: 2021 for ALN 84.299 and 2023 for ALN 84.184 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: The School District is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end or by any Office of Management and Budget extended deadlines. Condition and Context: The Form SF-SAC for the fiscal year ended June 30, 2023 was not filed on time. Cause: The audit was not completed in time to file the form. This was due to a delay in closing the books and records as well as not timely remitting audit documentation to the audits. Effect: The District was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: No Recommendation: We recommend the District implement internal control procedures to ensure timely closing of books and records to ensure timely submission of the Form SF-SAC in the future. Management’s Response: Management concurs with this finding. See corrective action plan.
Proposed Completion Date: Fiscal Year 2024 Finding 2023-006 Lack of Internal Control / Noncompliance over Reporting Name of Contact Person: Elena Begojevic, Business Manager Corrective Action Plan: HCSD hired an experienced and independent contract business manager who would ensure that audited financial statements are completed within 9 months of the end of the district’s fiscal year end. Proposed Completion Date: Fiscal Year 2024
FAC accepted this audit on January 4, 2023 — management decision was due July 4, 2023.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Material Weakness Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S299A170061, S299A18022, S299A180025, and S18G190154 Award Years: 2017, 2018, and 2019 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We select a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 4 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 6 payroll transactions for ALN 84.184 and 15 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Actual and likely questioned costs estimated to be below the reporting threshold of $25,000. Based on the auditor?s review of pay rates, all employees were being paid a reasonable amount based on the their position and the auditor?s experience with similar entities. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed. Management?s Response: Management agrees with this finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Material Weakness Allowable Costs/Cost Principles Material Noncompliance Federal Agency: U.S. Department of Education Federal Program: School Safety National Activities and Native Youth Community Programs ALN: 84.184 and 84.299 Award Numbers: S299A170061, S299A18022, S299A180025, and S18G190154 Award Years: 2017, 2018, and 2019 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Allowable cost principles are defined in 2 CFR 200.400. Condition and Context: We select a sample of 25 expenditures transactions for ALN 84.184. The District did not provide supporting documentation for 4 of these transactions. The District also did not provide detailed payroll distribution reports to select samples from. We selected 6 payroll transactions for ALN 84.184 and 15 payroll transactions for ALN 84.299. The District did not provide the auditors with supporting documentation for any of the payroll transactions selected. Cause: Lack of internal control over transactions charged to the major programs. Effect: The lack of supporting documentation allows for the potential for misstatement of expenditures being charged to the major program for which the cost is unallowable. Questioned Costs: Actual and likely questioned costs estimated to be below the reporting threshold of $25,000. Based on the auditor?s review of pay rates, all employees were being paid a reasonable amount based on the their position and the auditor?s experience with similar entities. Repeat Finding: No. We believe this to be an isolated issue due to employee turnover. Recommendation: We recommend the District adhere to their internal control policies to ensure that the regulations contained in 2 CFR 200 are followed. Management?s Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Name of Contact Person: Bart Mwarey, Superintendent, and Yodean Armour, Business Manager Corrective Action Plan: District will adhere to internal control policies to ensure that the regulations contained in 2 CFR 200 are followed. Proposed Completion Date: June 30, 2023
FAC accepted this audit on January 5, 2020 — management decision was due July 5, 2020.
The District charged unallowed costs to the program. Criteria: Per OMB 200.403(a), costs should ?be necessary and reasonable for the performance of the Federal award.? Context: During our review of costs charged to program, we noted the District included $5,713 of costs that were not necessary or reasonable for the performance of the Federal award. Management subsequently moved these costs to the School Operating Fund. We believe this to be an isolated instance. Cause: Lack of internal controls over expenditures charged to the program. Questioned Costs: None above reporting threshold noted. Effect: Unallowable cost could be charged to the program. Repeat Finding: No. Recommendation: We recommend that management implement policies and procedures to ensure that only allowable costs are charged to the program. Managements Response: Management agrees with this finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding 2019-005 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program: Innovative Approaches to Literacy (SAIL) CFDA Number: 84.215 Award Number: S215G180155 Award Year: 2019 Pass-through Entity: Findings is related to direct award only. Type of Finding: Significant deficiency in internal control over compliance and noncompliance Condition: The District charged unallowed costs to the program. Criteria: Per OMB 200.403(a), costs should ?be necessary and reasonable for the performance of the Federal award.? Context: During our review of costs charged to program, we noted the District included $5,713 of costs that were not necessary or reasonable for the performance of the Federal award. Management subsequently moved these costs to the School Operating Fund. We believe this to be an isolated instance. Cause: Lack of internal controls over expenditures charged to the program. Questioned Costs: None above reporting threshold noted. Effect: Unallowable cost could be charged to the program. Repeat Finding: No. Recommendation: We recommend that management implement policies and procedures to ensure that only allowable costs are charged to the program. Managements Response: Management agrees with this finding. See Corrective Action Plan.
Finding 2019-005 Lack of Internal Controls Activities Allowed or Unallowed and Allowable Costs/Cost Principles Name of Contact Person: Bart Mwarey, Superintendent and Teri Hoover, Contracted Business Manager Corrective Action Plan: The district will have strict approval and review processes regarding all purchases made during FY 20 to ensure that only allowable costs are coded to federal grant programs. Proposed Completion Date: This process started July 1, 2019.
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