TALAWANDA SCHOOL DISTRICT Single Audit Reports Year Ended June 30, 2008
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TALAWANDA SCHOOL DISTRICT Single Audit Reports Year Ended June 30, 2008 Board of Education Talawanda School District 131 W. Chestnut Street Oxford, Ohio 45056 We have reviewed the Independent Auditors’ Report of the Talawanda School District, Butler County, prepared by Clark, Schaefer, Hackett & Co., for the audit period July 1, 2007 through June 30, 2008. Based upon this review, we have accepted these reports in lieu of the audit required by Section 117.11, Revised Code. The Auditor of State did not audit the accompanying financial statements and, accordingly, we are unable to express, and do not express an opinion on them. Our review was made in reference to the applicable sections of legislative criteria, as reflected by the Ohio Constitution, and the Revised Code, policies, procedures and guidelines of the Auditor of State, regulations and grant requirements. The Talawanda School District is responsible for compliance with these laws and regulations. Mary Taylor, CPA Auditor of State February 13, 2009 88 E. Broad St. / Fifth Floor / Columbus, OH 43215‐3506 Telephone: (614) 466‐4514 (800) 282‐0370 Fax: (614) 466‐4490 www.auditor.state.oh.us This Page is Intentionally Left Blank. TABLE OF CONTENTS Schedule of Expenditures of Federal Awards...............................................................................1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards........................................................2 – 3 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133.................................................................................................4 – 5 Schedule of Findings and Questioned Costs................................................................................6 This Page is Intentionally Left Blank. TALAWANDA CITY SCHOOL DISTRICT Schedule of Expenditures of Federal Awards Year Ended June 30, 2008 Pass-Through Federal Entity CFDA Federal Federal Federal Grantor/Program Title Number Number Revenues Expenditures U.S. Department of Agriculture: (Passed through Ohio Department of Education) Food Donation n/a 10.550 $ 40,617 40,617 Nutrition Cluster: School Breakfast Program 05PU-2008 10.553 62,892 62,892 National School Lunch Program LLP4-2008 10.555 307,864 307,864 Nutrition Cluster Total 370,756 370,756 Total U.S. Department of Agriculture 411,373 411,373 U.S. Department of Education: (Passed through Ohio Department of Education) Title I Grants to Local Educational Agencies C1S1-2007 84.010 77,696 45,155 Title I Grants to Local Educational Agencies C1S1-2008 84.010 326,914 339,602 404,610 384,757 Special Education Cluster: Special Education - Grants to States 6BSF-2007 84.027 73,914 68,144 Special Education - Grants to States 6BSF-2008 84.027 655,922 664,342 Special Education - Preschool Grants PGS1-2008 84.173 3,004 1,824 Special Education - Preschool Grants PGS1-2008 84.173 10,371 10,909 Special Education Cluster Total 743,211 745,219 Safe and Drug-Free Schools and Communities DRS1-2008 84.186 7,654 7,505 State Grants for Innovative Programs C2S1-2007 84.298 - 191 State Grants for Innovative Programs C2S1-2008 84.298 4,941 5,427 4,941 5,618 Education Technology State Grants TJS1-2007 84.318 - 1,606 Education Technology State Grants TJS1-2008 84.318 2,362 1,948 2,362 3,554 Comprehensive School Reform Demonstration RFCC-2007 84.332 10,481 13,913 Improving Teacher Quality State Grants TRS1-2007 84.367 30,276 19,990 Improving Teacher Quality State Grants TRS1-2008 84.367 108,346 105,370 138,622 125,360 Total U.S. Department of Education 1,311,881 1,285,926 Total Federal Awards $ 1,723,254 1,697,299 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS: NOTE A - SIGNIFICANT ACCOUNTING POLICIES The schedule of expenditures of federal awards is a summary of the activity of the School District's federal award programs. The schedule has been prepared on the cash basis of accounting. NOTE B - FOOD DONATION Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. NOTE C - NUTRITION CLUSTER Cash receipts from the U.S. Department of Agriculture are commingled with State grants. It is assumed federal monies are expended first. 1 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Education Talawanda School District: We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Talawanda School District (the “School District”) as of and for the year ended June 30, 2008, which collectively comprise the School District’s basic financial statements and have issued our report thereon dated December 29, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the School District’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the School District’s internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity’s financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 2 Compliance And Other Matters As part of obtaining reasonable assurance about whether the School District’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the School District in a separate letter dated December 29, 2008. This report is intended solely for the information and use of the School District’s management, the Board of Education, others within the entity, the Ohio Auditor of State and federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than those specified parties. Cincinnati, Ohio December 29, 2008 3 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Board of Education Talawanda School District: Compliance We have audited the compliance of the Talawanda School District (the “School District”) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2008. The School District’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the School District’s management. Our responsibility is to express an opinion on the School District’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing