BEREA CITY SCHOOL DISTRICT CUYAHOGA COUNTY SINGLE AUDIT FOR THE YEAR ENDED JUNE 30, 2005 BEREA CITY SCHOOL DISTRICT CUYAHOGA COUNTY TABLE OF CONTENTS TITLE PAGE Federal Awards Receipts and Expenditures Schedule................................................................................. 1 Notes to Federal Awards Receipts and Expenditures Schedule .................................................................. 2 Independent Accountants’ Report on Compliance and on Internal Control Required by Government Auditing Standards............................................................. 3 Independent Accountants’ Report on Compliance with Requirements Applicable to its Major Federal Program and Internal Control Over Compliance in Accordance with OMB Circular A-133....................................................................... 5 Schedule of Findings..................................................................................................................................... 7 This page intentionally left blank. BEREA CITY SCHOOL DISTRICT CUYAHOGA COUNTY FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE FOR THE YEAR ENDED JUNE 30, 2005 FEDERAL GRANTOR Pass Through Federal Federal Federal Pass Through Grantor Entity CFDA Federal Non-Cash Federal Non-Cash Program Title Number Number Receipts Receipts Expenditures Expenditures U.S. DEPARTMENT OF AGRICULTURE Passed Through Ohio Department of Education Nutrition Cluster: Food Distribution N/A 10.550 $0 $113,746 $0 $113,746 National School Breakfast Program 05PU-2004 10.553 7,432 0 7,432 0 National School Breakfast Program 05PU-2005 10.553 26,925 0 26,925 0 Total National School Breakfast Program 34,357 0 34,357 0 National School Lunch Program LLP4-2004 10.555 126,095 0 126,095 0 National School Lunch Program LLP4-2005 10.555 319,341 0 319,341 0 Total National School Lunch Program 445,436 0 445,436 0 Total U.S. Department of Agriculture 479,793 113,746 479,793 113,746 U.S. DEPARTMENT OF EDUCATION Passed Through Ohio Department of Education Title I, Part A C1S1-2004 84.010 (18,311) 0 28,191 0 Title I, Part A C1S1-2005 84.010 433,368 0 370,254 0 Title I, Part A C1SN-2005 84.010 79,824 0 93,341 0 Total Title I, Part A 494,881 0 491,786 0 Special Education Cluster: IDEA Part B (Title VI-B) 6BSF-2004 84.027 (29,155) 0 90,860 0 IDEA Part B (Title VI-B) 6BSF-2005 84.027 1,647,325 0 1,464,165 0 Autism Grant 6BSA-2005 84.027 50,000 0 40,075 0 Total IDEA Part B (Title VI-B) 1,668,170 0 1,595,100 0 Preschool Disability Grant PGS1-2004 84.173 (1,610) 0 6,134 0 Preschool Disability Grant PGS1-2005 84.173 39,537 0 37,106 0 Total Preschool Disability Grant 37,927 0 43,240 0 Total Special Education Cluster 1,706,097 0 1,638,340 0 Drug Free School Grant DRS1-2004 84.186 (5,978) 0 526 0 Drug Free School Grant DRS1-2005 84.186 30,584 0 13,086 0 Total Drug Free School Grant 24,606 0 13,612 0 Title V - Innovative Programs C2S1-2004 84.298 (12) 0 3,515 0 Title V - Innovative Programs C2S1-2005 84.298 35,880 0 35,302 0 Total Innovative Programs 35,868 0 38,817 0 Title II, Part D - Education Technology TJS1-2004 84.318 (1,231) 0 0 0 Title II, Part D - Education Technology TJS1-2005 84.318 15,159 0 12,855 0 Total Title II, Part D - Education Technology 13,928 0 12,855 0 Advanced Placement Program T3S1-2005 84.330 208 0 0 0 English Language Acquisition Grants T3S1-2004 84.365 (108) 0 2,236 0 English Language Acquisition Grants T3S1-2005 84.365 15,204 0 15,597 0 English Language Acquisition Grants T3S2-2004 84.365 494 0 1,263 0 English Language Acquisition Grants T3S2-2005 84.365 5,065 0 4,919 0 Total English Language Acquisition Grants 20,655 0 24,015 0 Improving Teacher Quality State Grants TRS1-2004 84.367 (16,151) 0 39,351 0 Improving Teacher Quality State Grants TRS1-2005 84.367 172,614 0 180,011 0 Improving Teacher Quality State Grants TRSP-2004 84.367 40,000 000 Total Improving Teacher Quality State Grants 196,463 0 219,362 0 Total U.S. Department of Education 2,492,706 0 2,438,787 0 Total $2,972,499 $113,746 $2,918,580 $113,746 The accompanying notes are an integral part of this schedule. 1 BEREA CITY SCHOOL DISTRICT CUYAHOGA COUNTY JUNE 30, 2005 NOTES TO THE FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE NOTE A - SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Federal Awards Receipts and Expenditures (Schedule) summarizes the activity of the District’s federal award programs. The Schedule has been prepared on the cash basis of accounting. The information in this Schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE B - FOOD DISTRIBUTION Nonmonetary assistance, such as food received from the U.S. Department of Agriculture, is reported in the Schedule at the fair market value of the commodities received and consumed. Values may change from month to month and are entirely subjective. At June 30, 2004, the District had no significant food commodities in inventory. NOTE C – NATIONAL SCHOOL BREAKFAST PROGRAM AND NATIONAL SCHOOL LUNCH PROGRAM FOR CHILDREN Federal monies received by the District for this program are commingled with State grants and local revenues. It is assumed that federal monies are expended first. NOTE D – NEGATIVE RECEIPTS The Ohio Department of Education (ODE) transferred federal monies from grant year 2004 to grant year 2005 for several of the District’s federal grants. These transfers appear as negative receipts in the 2004 grant year and positive receipts in the 2005 grant year. This action by ODE allowed the District to extend the availability period for expenditure of these receipts. N/A - Not applicable. CFDA - Catalog of Federal Domestic Assistance. 2 INDEPENDENT ACCOUNTANTS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING STANDARDS Berea City School District Cuyahoga County 390 Fair Street Berea, Ohio 44017 To the Board of Education: We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Berea City School District, Cuyahoga County, Ohio, (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 December 16, 2005. 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 in order 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 reportable 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 material weaknesses. In a separate letter to the District’s management dated December 16, 2005, 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 no instances of noncompliance or other matters we must report under Government Auditing Standards. In a separate letter to the District’s management dated December 16, 2005, we reported other matters related to noncompliance we deemed immaterial. 3 Berea City School District Cuyahoga County Independent Accountants’ Report on Internal Controls 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 management, the 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 December 16, 2005 4 INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO ITS MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Berea City School District Cuyahoga County 390 Fair Street Berea, Ohio 44017 To the Board of Education: Compliance We have audited the compliance of the Berea City School District, Cuyahoga 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 its major federal program 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 program.