LANCASTER CITY SCHOOL DISTRICT FAIRFIELD COUNTY SINGLE AUDIT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 LANCASTER CITY SCHOOL DISTRICT FAIRFIELD COUNTY TABLE OF CONTENTS TITLE PAGE Federal Awards Receipts and Expenditures Schedule ................................................................................. 1 Notes to the Federal Awards Receipts and Expenditures Schedule ............................................................ 2 Independent Accountants’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards .......................................... 3 Independent Accountants’ Report on Compliance with Requirements Applicable To Each Major Federal Program, Internal Control Over Compliance in Accordance with OMB Circular A-133, and Federal Awards Receipts and Expenditures Schedule ..................................... 5 Schedule of Findings ..................................................................................................................................... 7 Independent Accountants’ Report on Applying Agreed-Upon Procedures ................................................... 9 THIS PAGE INTENTIONALLY LEFT BLANK LANCASTER CITY SCHOOL DISTRICT FAIRFIELD COUNTY FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE FOR THE YEAR ENDED JUNE 30, 2009 FEDERAL GRANTOR Federal Pass Through Grantor CFDA Program Title Number Receipts Disbursements U.S. DEPARTMENT OF AGRICULTURE: Passed Through Ohio Department of Education: Nutrition Cluster: Non-Cash Assistance (Food Distribution): National School Lunch Program 10.555 $100,654 $100,654 Cash Assistance School Breakfast Program 10.553 358,202 358,202 National School Lunch Program 10.555 1,050,218 1,050,218 Total Nutrition Cluster 1,509,074 1,509,074 Total U.S. Department of Agriculture 1,509,074 1,509,074 U.S. DEPARTMENT OF EDUCATION: Safe and Drug-Free Schools and Communities National Program 84.184 70,000 75,987 Fund for the Improvement of Education Program 84.215 314,808 329,355 Passed Through Ohio Department of Education: Special Education Cluster: Special Education_Grants to States Program 84.027 1,115,028 1,388,907 Special Education _Preschool Grants Program 84. 173 4, 129 39, 469 Total Special Education Cluster 1,119,157 1,428,376 Title I Grants to Local Educational Agencies Program 84.010 1,329,637 1,606,714 Career and Technical Education_Basic Grants to States Program 84.048 114,682 127,250 Safe and Drug-Free Schools and Communities State Grants Program 84.186 3,000 32,707 State Grants for Innovative Programs 84.298 5,309 15,055 Education Technology State Grants Program 84.318 1,360 15,160 Improving Teacher Quality State Grants Program 84.367 342,262 430,305 Total U.S. Department of Education 3,300,215 4,060,909 U.S. DEPARTMENT OF HOMELAND SECURITY: Passed Through Ohio Department of Public Safety: Disaster Grants - Public Assistance Program 97.036 15,981 15,981 Total U.S. Department of Homeland Security 15,981 15,981 Totals $4,825,270 $5,585,964 The accompanying notes to this schedule are an integral part of this schedule. 1 LANCASTER CITY SCHOOL DISTRICT FAIRFIELD COUNTY NOTES TO FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE FOR THE FISCAL YEAR ENDED JUNE 30, 2009 NOTE A - SIGNIFICANT ACCOUNTING POLICIES The accompanying Federal Awards Receipts and Expenditures Schedule (the Schedule) reports the District’s federal award programs’ receipts and disbursements. The Schedule has been prepared on the cash basis of accounting. NOTE B - SUBRECIPIENTS The District passes certain federal awards received from the Ohio Department of Education to other governments or not-for-profit agencies (subrecipients). As Note A describes, the District reports expenditures of Federal awards to subrecipients when paid in cash. As a subrecipient, the District has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals. Amount CFDA Provided to Program Title Number Subrecipients Title I Grants to Local Educational Agencies 84.010 $116,795 NOTE C - CHILD NUTRITION CLUSTER The District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on the Schedule, the District assumes it expends federal monies first. NOTE D - FOOD DONATION PROGRAM Program regulations do not require the District to maintain separate inventory records for purchased food versus food commodities it receives from the U.S. Department of Agriculture. The District reports commodities consumed on the Schedule at the entitlement value. NOTE E - REFUND Due to the expiration of period of availability, the following grant was refunded to the Ohio Department of Education. CFDA Program Title Number Amount Special Education Preschool Grants Program 84.173 $614 2 INDEPENDENT ACCOUNTANTS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING STANDARDS Lancaster City School District Fairfield County 345 Mulberry Street Lancaster, Ohio 43130 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 Lancaster City School District, Fairfield County, Ohio (the District) as of and for the year ended June 30, 2009, which collectively comprise the District’s basic financial statements and have issued our report thereon dated December 4, 2009. 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 as a basis for designing our audit procedures for expressing our opinions on the financial statements, but not to opine on the effectiveness of the District’s internal control over financial reporting. Accordingly, we have not opined on the effectiveness of the 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 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 District’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with its applicable accounting basis, such that there is more than a remote likelihood that the District’s internal control will not prevent or detect a more-than-inconsequential financial statement misstatement. A material weakness is a significant deficiency, or combination of significant deficiencies resulting in more than a remote likelihood that the District’s internal control will not prevent or detect a material financial statement misstatement. 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 internal control deficiencies that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider material weaknesses, as defined above. 88 E. Broad St. / Tenth Floor / Columbus, OH 43215‐3506 Telephone: (614) 466‐3402 (800) 443‐9275 Fax: (614) 728‐7199 www.auditor.state.oh.us 3 Lancaster City School District Fairfield County Independent Accountants’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards Page 2 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 no instances of noncompliance or other matters we must report under Government Auditing Standards. We intend this report solely for the information and use of the Financial Review Committee, management, Board of Education, and federal awarding agencies and pass-through entities. We intend it for no one other than these specified parties. Mary Taylor, CPA Auditor of State December 4, 2009 4 INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR FEDERAL PROGRAM, ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133, AND ON THE FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE Lancaster City School District Fairfield County 345 Mulberry Street Lancaster, Ohio 43130 To the Board of Education: Compliance We have audited the compliance of Lancaster City School District, Fairfield County, Ohio (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