YOUNGSTOWN CITY SCHOOL DISTRICT MAHONING COUNTY TABLE OF CONTENTS TITLE PAGE Federal Awards Expenditures Schedule for the Year Ended June 30, 2005 ............................................... 1 Notes to the Federal Awards Expenditures Schedule - June 30, 2005 ........................................................ 3 Independent Accountants’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards .............................................................. 5 Independent Accountants’ Report on Compliance with Requirements Applicable to Each Major Federal Program and on Internal Control Over Compliance In Accordance With OMB Circular A-133 .................................................................................................................................... 7 Schedule of Findings – June 30, 2005.......................................................................................................... 9 This page intentionally left blank. YOUNGSTOWN CITY SCHOOL DISTRICT MAHONING COUNTY FEDERAL AWARDS EXPENDITURES SCHEDULE FOR THE YEAR ENDED JUNE 30, 2005 Pass Federal Grantor/ Through Federal Pass Through Grantor Entity CFDA Non-Cash Non-Cash Program Title Number Number Receipts Receipts Disbursements Disbursements U.S. DEPARTMENT OF AGRICULTURE Passed Through Ohio Department of Education: Nutrition Cluster: Food Donation 045161 10.550 $$ 282,932 $$ 282,932 National School Breakfast Program LL-P4 10.553 751,046 751046 National School Lunch Program LL-P4 10.555 2,328,395 2,328,395 Total U.S. Department of Agriculture - Nutrition Cluster $3,079,441$ 282,932 $3,079,441$ 282,932 U.S. DEPARTMENT OF DEFENSE Direct Program Junior Reserve Officer Training Corp 12.000 39,538 39,538 U.S. DEPARTMENT OF EDUCATION Direct Program Safe and Drug-Free Schools and Communities Grant - National DR-S1 84.184 169,915 149,870 Passed Through Ohio Department of Education: Special Education Cluster: Special Education Grants to States (IDEA Part B) 6B-SF 84.027 3,105,053 2,750,244 Special Education - Preschool Grant PG-S1 84.173 68,254 132,059 Total Special Education Cluster 3,173,307 2,882,303 Adult Education- State Grant Program AB-S1 84.002 384,461 246,335 Grants to Local Educational Agencies (ESEA Title I) C1-SS/SD 84.010 5,848,074 6,879,930 Vocational Education Basic Grants to States 20-C2 84.048 598,596 387,757 Federal Pell Grant Program --- 84.063 276,745 276,745 Safe and Drug-Free Schools and Communities Grant - State DR-S1 84.186 126,643 119,880 Education for Homeless Children and Youth HC-S1 84.196 86,516 116,754 Eisenhower Professional Development State Grant MS-S1 84.281 18,902 21st Century Community Learning Centers T1-S1 84.287 300,000 263,010 State Grants for Innovative Programs C2-S1 84.298 89,814 86,112 Education Technology State Grants TJ-S1 84.318 139,161 158,091 Advanced Placement Program AV-TF 84.330 5,976 5,976 Comprehensive Sch. Reform Demonstration RF-S3 84.332 28,935 60,518 Assistive Technology Infusion AT-S3 84.352 298 Reading First State Grant RS-S1 84.357 1,454,286 1,300,429 English Language Acquisition Grants T3-S1 84.365 29,788 27,327 Improving Teacher Quality State Grants TR-S1 84.367 1,934,713 1,328,044 Total U.S. Department of Education 14,646,930 14,308,281 1 YOUNGSTOWN CITY SCHOOL DISTRICT MAHONING COUNTY FEDERAL AWARDS EXPENDITURES SCHEDULE FOR THE YEAR ENDED JUNE 30, 2005 (Continued) Pass Federal Grantor/ Through Federal Pass Through Grantor Entity CFDA Non-Cash Non-Cash Program Title Number Number Receipts Receipts Disbursements Disbursements U.S. Department of Health and Human Services Passed Through Ohio Department of MRDD Medical Assistance Program 93.778 990,943 990,943 Corp. for National & Community Service Direct Program Americorps 94.006 88,308 149,192 Totals $18,845,160 $282,932 $18,567,395 $282,932 The accompanying notes to the Federal Awards Expenditures Schedule are an integral part of this schedule. 2 YOUNGSTOWN CITY SCHOOL DISTRICT MAHONING COUNTY NOTES TO THE FEDERAL AWARDS EXPENDITURES SCHEDULE FISCAL YEAR ENDED JUNE 30, 2005 NOTE A - SIGNIFICANT ACCOUNTING POLICIES The accompanying Federal Awards Expenditures Schedule (the Schedule) summarizes the activity of the District’s federal award programs. The Schedule has been prepared on the cash basis of accounting. NOTE B – CHILD NUTRITION CLUSTER Program regulations do not require the District to maintain separate inventory records for purchased food and food received from the U.S. Department of Agriculture. This non-monetary assistance (expenditures) is reported in the Schedule at the fair market value of the commodities received. Cash receipts from the U.S. Department of Agriculture are commingled with State grants. It is assumed federal monies are expended first. NOTE C - MATCHING REQUIREMENTS Certain Federal programs require that the District contribute non-Federal funds (matching funds) to support the Federally-funded programs. The District has complied with the matching requirements. The expenditure of non-Federal matching funds is not included on the Schedule. 3 This page intentionally left blank. 4 INDEPENDENT ACCOUNTANTS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING STANDARDS Youngstown City School District Mahoning County 20 West Wood Street Youngstown, Ohio 44501 To the Board of Education: We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Youngstown City School District, Mahoning County, (the District) as of and for the year ended June 30, 2005, which collectively comprise the District’s basic financial statements and have issued our report thereon dated April 27, 2006. 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 the Comptroller General of the United States’ Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the District’s internal control over financial reporting to determine our auditing procedures to express our opinions on the financial statements and not to opine on the internal control over financial reporting. Our consideration of the internal control would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts material to the financial statements we audited may occur and not be timely detected by employees when performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. In a separate letter to the District’s management dated April 27, 2006, we reported other matters involving internal control over financial reporting we did not deem reportable conditions. Compliance and Other Matters As part of reasonably assuring whether the District’s financial statements are free of material misstatement, we tested its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could directly and materially affect 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 an opinion. The results of our tests disclosed an instance of noncompliance or other matters that we must report under Government Auditing Standards which is described in the accompanying schedule of findings as item 2005-001. In a separate letter to the District’s management dated April 27, 2006, we reported other matters related to noncompliance we deemed immaterial. 5 Youngstown City School District Mahoning County Independent Accountants’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards Page 2 We intend this report solely for the information and use of the audit committee, management, Board of Education, federal awarding agencies, and pass-through entities. It is not intended for anyone other than these specified parties. Betty Montgomery Auditor of State April 27, 2006 6 INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Youngstown City School District Mahoning County 20 West Wood Street Youngstown, Ohio 44501 To the Board of Education: Compliance We have audited the compliance of Youngstown City School District, Mahoning County, (the “District”) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that apply to each of its major federal programs for the year ended June 30, 2005. The summary of auditor’s results section of the accompanying schedule of findings identifies the District’s major federal programs. The District’s management is responsible for complying with the requirements of laws, regulations, contracts, and grants applicable to each major federal program. Our responsibility is to express an opinion on the District’s compliance based on our