Ignacio School District 11JT

2025-002: Material Weakness in Financial Reporting (L) Federal Assistance Listing Number: 84.425D and 84.425U Federal Award Year: 2022 Program Title: Education Stabilization Fund – Elementary and Secondary School Emergency Relief (ESSER) Name of Federal Agency: U.S. Department of Education Name of Pass-Through Entity: Colorado Department of Education COVID-19 Program: Yes Criteria: Award letter federal provisions from the pass-through entity states that the grantee shall report data elements to SAM.gov and to the pass-through entity as required. The pass-through entity, the Colorado Department of Education, required that the District submit a report by December 1, 2024.

Condition: We have identified that the District did not file the report by December 1, 2024. The District filed this required report to the Colorado Department of Education on June 3, 2025.

Cause: The District was noncompliance with this requirement. Internal controls and processes related to the reporting requirements at the District were not properly established and implemented in order to mitigate the noncompliance. This District experienced significant turnover during the grant period of this award.

Effect: The District has a high likelihood of noncompliance with this requirement with the ESSER and potentially other federal grant programs.

Repeat Finding: No.

Questioned Costs: None.

Recommendation: We recommend that the District establish and implement a policy and process that will consistently monitor the reporting requirements for federal awards and make sure that they are submitted to the grantor agency in a timely manner. In addition, we recommend that an internal control review process is established to verify that all the required reports are submitted to the grantor agency in a timely manner.

2025-003: Noncompliance related to SEFA, FAC Reports, and Single Audits for fiscal years ended June 30, 2022, 2023, and 2024 Federal Assistance Listing Number: 10.553, 10.555, 10.559, 84.041, 84.010A, 84.060, 84.358B, 84.365, 84.367, 84.323, 84.424A, 84.425D, 84.425U, 84.048, 94.243, and others potentially unknown in prior years. Federal Award Year(s): Multiple Program Title(s): Multiple Name of Federal Agency(ies): U.S. Department of Agriculture, U.S. Department of Education, and U.S. Department of Health and Human Services Name of Pass-Through Entity(ies): Various, including the Colorado Department of Education, Colorado Community Colleges System, and Colorado Department of Human Services COVID-19 Program(s): Yes Criteria: Section 200.510b of the Code of Federal Regulations Title 2, Subtitle A, Chapter II, Part 200, Subpart F (also known as 2CFR200) states that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with section 200.502.

In addition, in accordance with Section 200.501(a) and (b) of the 2CFR200, a non-Federal entity that expended $750,000 or more in Federal awards during the non-Federal entity’s fiscal year (2022, 2023, and 2024) must have a Single Audit conducted on major Federal programs in accordance with 200.514.

The FAC report is required to be submitted the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.

Condition: The District has not prepared a schedule of expenditures of federal awards (SEFA), did not have an auditor conduct Single Audits on major Federal programs, and failed to submit the required report to the Federal Audit Clearinghouse (FAC.gov) for the fiscal years ended June 30, 2022, 2023, and 2024 (prior three fiscal years). The FAC report is required to be submitted the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.

Cause: The District lacked internal controls and awareness of the requirements noted above to prepare the SEFA, conduct an annual Single Audit, and submit an annual FAC.gov report in a timely manner.

Effect: The District was noncompliant with multiple requirements of the 2CFR200 for fiscal years ended June 30, 2022, 2023, and 2024. This noncompliance impacts multiple federal grant programs and may impact future federal awards and require increased oversight, heightened risk classification, and/or special monitoring, if imposed by the grantor.

The District had conversations with the Colorado Department of Education and obtain an understanding of the impacts of this noncompliance. Additional requirements may be imposed on the District by grantors as a result of this noncompliance and backlog of Single Audits on major Federal programs.

Repeat Finding: No.

Questioned Costs: Questioned costs are not known, because the Single Audits on major Federal programs for fiscal years ended June 30, 2022, 2023, and 2024, was not performed. However, there is likelihood and potential for questioned costs or fraud that has not been identified without the completion of the Single Audits on major Federal programs.

Recommendation: The District must discuss with the grantors regarding this noncompliance and potential remedies, including the backlog of Single Audits on major Federal programs for fiscal years ended June 30, 2022, 2023, and 2024. In the future, we highly recommend that the District maintain proper internal controls and accurate grant records to prepare an accurate SEFA that will allow auditors to perform the Single Audits on major Federal programs, and submit the FAC report in a timely manner.

We also recommend that the District evaluate the options to remedy the backlog of Single Audits and internally determine the best course of action for the District.