Identification of federal program: US DEPARTMENT OF EDUCATION passed through the Indiana Department of Education: Charter Schools Program 84.282A. See finding in Section B. Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The SEFA under-reported the expenditures for Charter Schools Program (CSP) by $24,206. Cause : The School prepared the SEFA based on the federal revenue recorded, rather than the actual federal expenditures incurred. Effect : An audit adjustment of $24,206 was made to increase the federal expenditures reported on the SEFA for the CSP program. Questioned costs: none. Context: $24,406 out of $635,116 total program expenditures were omitted from the SEFA. Recommendation : We recommend that the School implement procedures whereby the SEFA is prepared based on federal expenditures incurred on a GAAP basis. View of responsible officials : See attached corrective action plan.
Identification of federal program: US DEPARTMENT OF EDUCATION, passed through the Indiana Department of Education, Charter Schools Program 84.282A Criteria : In accordance with CFR 200.318(i), the non-federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, in accordance with CFR 200.318(a) the non- federal entity must have and use documented procurement procedures consistent with federal procurement standards. Condition: Expenditures tested that met the small purchase threshold (purchases with a cost between $10,000 and $250,000) did not have documentation detailing the history of procurement. Cause : The School does not have procurement policies that follow federal guidelines, specifically 2 CFR 200.320 Methods of procurement to be followed. Effect : Property and equipment additions made using federal funds during the year did not have appropriate a support showing procurement policies were followed. Questioned costs: $83,864 Context: Two out of two purchases tested for procurement did not follow federal procurement methods. Recommendation : We recommend that the School institute procurement policies whereby acquisitions follow appropriate procurement steps as required by 2 CRF 200.350 and documentation of procurement decisions is maintained. View of responsible officials : See attached corrective action plan
Identification of federal program: US DEPARTMENT OF EDUCATION, passed through the Indiana Department of Education, Charter Schools Program 84.282A Criteria : In accordance with 2 CFR 200.403(g), costs must be adequately documented in order to be allowable under Federal awards. Condition : The School was unable to provide documentation for three (3) out of sixty (60) non-payroll expenses. Cause : The School failed to follow its own policies for documentation of expenses and document retention. Effect: The costs were not allowable under the Federal award because they were not adequately documented. Questioned costs: $2,412. Context: Three (3) out of sixty (60) non-payroll expenditures tested did not have original invoice or payment support. Recommendation : We recommend the School implement a document retention system whereby invoices and payment support are retained for the appropriate time period. Recommendation : We recommend the School implement a document retention system whereby invoices and payment support are retained for the appropriate time period. Views of Responsible Officials: See attached Corrective Action Plan.
Identification of federal program: US DEPARTMENT OF EDUCATION passed through the Indiana Department of Education: Charter Schools Program 84.282A. See finding in Section B. Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The SEFA under-reported the expenditures for Charter Schools Program (CSP) by $24,206. Cause : The School prepared the SEFA based on the federal revenue recorded, rather than the actual federal expenditures incurred. Effect : An audit adjustment of $24,206 was made to increase the federal expenditures reported on the SEFA for the CSP program. Questioned costs: none. Context: $24,406 out of $635,116 total program expenditures were omitted from the SEFA. Recommendation : We recommend that the School implement procedures whereby the SEFA is prepared based on federal expenditures incurred on a GAAP basis. View of responsible officials : See attached corrective action plan.
Identification of federal program: US DEPARTMENT OF EDUCATION, passed through the Indiana Department of Education, Charter Schools Program 84.282A Criteria : In accordance with CFR 200.318(i), the non-federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, in accordance with CFR 200.318(a) the non- federal entity must have and use documented procurement procedures consistent with federal procurement standards. Condition: Expenditures tested that met the small purchase threshold (purchases with a cost between $10,000 and $250,000) did not have documentation detailing the history of procurement. Cause : The School does not have procurement policies that follow federal guidelines, specifically 2 CFR 200.320 Methods of procurement to be followed. Effect : Property and equipment additions made using federal funds during the year did not have appropriate a support showing procurement policies were followed. Questioned costs: $83,864 Context: Two out of two purchases tested for procurement did not follow federal procurement methods. Recommendation : We recommend that the School institute procurement policies whereby acquisitions follow appropriate procurement steps as required by 2 CRF 200.350 and documentation of procurement decisions is maintained. View of responsible officials : See attached corrective action plan
Identification of federal program: US DEPARTMENT OF EDUCATION, passed through the Indiana Department of Education, Charter Schools Program 84.282A Criteria : In accordance with 2 CFR 200.403(g), costs must be adequately documented in order to be allowable under Federal awards. Condition : The School was unable to provide documentation for three (3) out of sixty (60) non-payroll expenses. Cause : The School failed to follow its own policies for documentation of expenses and document retention. Effect: The costs were not allowable under the Federal award because they were not adequately documented. Questioned costs: $2,412. Context: Three (3) out of sixty (60) non-payroll expenditures tested did not have original invoice or payment support. Recommendation : We recommend the School implement a document retention system whereby invoices and payment support are retained for the appropriate time period. Recommendation : We recommend the School implement a document retention system whereby invoices and payment support are retained for the appropriate time period. Views of Responsible Officials: See attached Corrective Action Plan.