North Marion School District No. 15

EIN: 936000759

UEI: KG3DEVQZGPD8

Data as of August 23, 2026

North Marion School District No. 1510 audit years6 findings2 repeat
10
Audit Years
6
Total Findings
2
Repeat Findings

FY 2025-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on January 28, 2026. 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 July 28, 2026 (26 days ago).

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2025-002
Cost Allowability
QUESTIONED COSTS

Views of responsible officials: The District understands and concurs with this finding.

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Views of responsible officials: The District understands and concurs with this finding.

Corrective Action Plan

The District has adjusted settings within the accounting system to ensure that data within different modules (payroll and general ledger) are aligned when retroactive funding adjustments are made. This will allow for increased oversight, monitoring, and validation of allowable costs within payroll as required for restricted funding.

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FY 2024-06-30

FAC accepted this audit on November 21, 2024 — management decision was due May 21, 2025.

2024-002
Special Tests & Provisions

Views of responsible officials: The District understands and concurs with this finding.

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Views of responsible officials: The District understands and concurs with this finding.

Corrective Action Plan

Moving forward, the District will require all staff to sign-in at all testing trainings. Test training sign-in sheets and completed test assurance forms will be kept on file. Completed test assurance forms and training sign-in sheets will be cross-checked against identified test administrators.

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FY 2021-06-30

FAC accepted this audit on November 10, 2021 — management decision was due May 10, 2022.

2021-001
Activities Allowed or Unallowed / Cost Allowability
REPEAT

A significant deficiency in controls over compliance was identified for controls over compliance requirements A and B from 2020 Office of Management and Budget (OMB) Compliance Supplement due to a lack of segregation of duties. This was also considered to be a significant deficiency in controls over financial reporting. Cause: The cause appears to be related to turnover in accounting personnel that left the District with only one individual to record and/or process certain transactions, including payroll. Effect or potential effect: The payroll for September 2020 appears to have been prepared and processed without independent review. A lack of effective internal controls over compliance for payroll expenditures could cause expenditure of funds for unallowable activities and/or costs. Additionally, the lack of proper segregation of duties has the potential to allow a material misstatement due to error or fraud. Questioned Costs: No known or estimated questioned costs identified. Context: The lack of segregation of duties was identified during inquires to obtain an understanding of internal controls and while performing audit procedures over account balances. Recommendation: The District should implement policies and procedures to ensure proper segregation of duties that would prevent or detect and correct a material misstatement. Views of responsible officials: The District understands and concurs with this finding. Condition: A lack of segregation of duties, considered to be significant deficiency in controls over financial reporting, was identified. Corrective Action: The District employed an individual for the HR/Payroll position in October 2020. The HR/Payroll person and the Business Manager checked and approved each other?s work as was past practice. Corrective action not fully implemented during a portion of the year ended June 30, 2021.

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Federal program: Education Stabilization Fund (Assistance Listing Number 84.425) Criteria: Per Title 2, Subtitle A, Chapter II, Subpart D, Section 202.303 (a), a non- Federal entity must "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)." Additionally, the District has the responsibility for establishing and maintaining effective internal control over financial reporting. Condition: A significant deficiency in controls over compliance was identified for controls over compliance requirements A and B from 2020 Office of Management and Budget (OMB) Compliance Supplement due to a lack of segregation of duties. This was also considered to be a significant deficiency in controls over financial reporting. Cause: The cause appears to be related to turnover in accounting personnel that left the District with only one individual to record and/or process certain transactions, including payroll. Effect or potential effect: The payroll for September 2020 appears to have been prepared and processed without independent review. A lack of effective internal controls over compliance for payroll expenditures could cause expenditure of funds for unallowable activities and/or costs. Additionally, the lack of proper segregation of duties has the potential to allow a material misstatement due to error or fraud. Questioned Costs: No known or estimated questioned costs identified. Context: The lack of segregation of duties was identified during inquires to obtain an understanding of internal controls and while performing audit procedures over account balances. Recommendation: The District should implement policies and procedures to ensure proper segregation of duties that would prevent or detect and correct a material misstatement. Views of responsible officials: The District understands and concurs with this finding. Condition: A lack of segregation of duties, considered to be significant deficiency in controls over financial reporting, was identified. Corrective Action: The District employed an individual for the HR/Payroll position in October 2020. The HR/Payroll person and the Business Manager checked and approved each other?s work as was past practice. Corrective action not fully implemented during a portion of the year ended June 30, 2021.

Corrective Action Plan

The District plans to employ an HR/Payroll person along with a Business Manager. The HR/Payroll person and the Business Manager will check and approve each other's work as they have in the past. These past processes have met all segregation of duties as required by the auditors. In the event there is not an HR/Payroll person, the Superintendent will review the payroll records.

Prior Finding References

2020-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2020-06-30

FAC accepted this audit on December 9, 2020 — management decision was due June 9, 2021.

2020-002
Activities Allowed or Unallowed / Cost Allowability
REPEAT

A significant deficiency in controls over compliance was identified for controls over compliance requirements A and B from 2020 Office of Management and Budget (OMB) Compliance Supplement. Controls over employee timecards were found not to be implemented as designed. Cause: Oversights by administrative staff, which may have been due to a lack of familiarity with the time keeping software utilized by the District. Effect or potential effect: A lack of effective internal controls over compliance for payroll expenditures could cause expenditure of funds for unallowable activities and/or costs. In the fiscal year ended June 30, 2020, payroll related expenditures for the Child Nutrition Cluster programs were $609,564. Questioned costs: No known or estimated questioned costs identified. Context: Out of a population of 333 payroll transactions subjected to sampling, TKW noted the following out of 60 sample items: 1 timecard was missing documentation of approval, 1 timecard was not approved timely, 1 timecard was missing documentation of the date of review, and 1 time card had a variance between the documentation provided and the time keeping system. Recommendation: The District should develop and implement policies and procedures to ensure that all timecards are reviewed in a timely manner and documented appropriately. Views of responsible officials: The District understands and concurs with this finding. Identification as a repeat finding, if applicable: Repeat of Finding 2019-001

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Federal program: Child Nutrition Cluster (CFDA 10.553, 10.555, 10.559) Criteria: Per Title 2, Subtitle A, Chapter II, Subpart D, Section 202.303 (a), a non- Federal entity must "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 ?Interna l Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)." Condition: A significant deficiency in controls over compliance was identified for controls over compliance requirements A and B from 2020 Office of Management and Budget (OMB) Compliance Supplement. Controls over employee timecards were found not to be implemented as designed. Cause: Oversights by administrative staff, which may have been due to a lack of familiarity with the time keeping software utilized by the District. Effect or potential effect: A lack of effective internal controls over compliance for payroll expenditures could cause expenditure of funds for unallowable activities and/or costs. In the fiscal year ended June 30, 2020, payroll related expenditures for the Child Nutrition Cluster programs were $609,564. Questioned costs: No known or estimated questioned costs identified. Context: Out of a population of 333 payroll transactions subjected to sampling, TKW noted the following out of 60 sample items: 1 timecard was missing documentation of approval, 1 timecard was not approved timely, 1 timecard was missing documentation of the date of review, and 1 time card had a variance between the documentation provided and the time keeping system. Recommendation: The District should develop and implement policies and procedures to ensure that all timecards are reviewed in a timely manner and documented appropriately. Views of responsible officials: The District understands and concurs with this finding. Identification as a repeat finding, if applicable: Repeat of Finding 2019-001

Corrective Action Plan

November 13, 2020 Corrective Action Plans Audit Finding 2020-001 The District plans to employ an HR/Payroll person along with a Business Manager. The HR/Payroll person and the Business Manager will check and approve each other's work as they have in the past. These past processes have met all segregation of duties as required by the auditors. Audit Finding 2020-002 We will continue to conduct trainings for all administrative and department heads that are responsible for approving timesheets in our electronic system. In addition, weekly reminders are sent automatically from this electronic system. Monthly reminders will be sent out from the HR/Payroll person starting in November 2020.

Prior Finding References

2019-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2019-06-30

FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.

2019-001
Activities Allowed or Unallowed / Cost Allowability

Per Title 2, Subtitle A, Chapter II, Subpart D, Section 202.303 (a), a non-Federal entity must "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)."

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Full finding narrative

Per Title 2, Subtitle A, Chapter II, Subpart D, Section 202.303 (a), a non-Federal entity must "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)."

Corrective Action Plan

Timesheet Approvals Corrective Action Plan: In the future, we will conduct trainings for all administrative and department heads that are responsible for approving timesheets in our electronic system. In addition, weekly reminders are sent automatically from the electronic system. Monthly reminders will also be sent out from payroll.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2016-06-30

FAC accepted this audit on January 4, 2017 — management decision was due July 4, 2017.

2016-003
Special Tests & Provisions

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.

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