Audit 11281

Finding 2023-001: Internal Controls over Compliance and Other Matters – Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA); AL No. 84.336 Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards, “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended.” Condition: Federal expenditures were not correctly identified on the School’s initial SEFA prepared for the audit. Per review of supporting documentation and inquiry of management, it was determined that the initial SEFA excluded $30,500 of federal expenditures for the Teacher Quality Partnership Grants – AL No. 84.336 program (U.S. Department of Education. Passed through to the School from the University of St. Thomas. Pass Through Entity Identifying Number S336S200016). This federal grant had been identified as Local Revenues, instead of Federal Revenues, which caused the related federal expenditures to be missed in the initial SEFA preparation. Cause: Internal controls are not in place to identify all contract and grant agreements that are federally funded. Effect: The amount of federal expenditures reported on the SEFA was initially understated by $30,500. The final SEFA included in the single audit reporting package accurately included these amounts. By not having proper controls over SEFA preparation and federal award identification, there is a risk that the SEFA will not reflect all of the federal awards subject to the Uniform Guidance. Questioned Costs: None. Repeat Finding of Immediate Prior Year: Yes. Finding 2022-002 – Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA); AL Nos. 93.434 and 93.575. Recommendation: We recommend that the School review internal control procedures to ensure timely identification of federal awards and related expenditures. Views of Responsible Officials and Planned Corrective Action: The School agrees with this finding. Lisa Hendricks, the Director of Finance, and the 3rd party accountant will work closely to develop a grant tracking system that determines the source of the grant funds prior to expending any of the funds.

Finding 2023-001: Internal Controls over Compliance and Other Matters – Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA); AL No. 84.336 Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards, “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended.” Condition: Federal expenditures were not correctly identified on the School’s initial SEFA prepared for the audit. Per review of supporting documentation and inquiry of management, it was determined that the initial SEFA excluded $30,500 of federal expenditures for the Teacher Quality Partnership Grants – AL No. 84.336 program (U.S. Department of Education. Passed through to the School from the University of St. Thomas. Pass Through Entity Identifying Number S336S200016). This federal grant had been identified as Local Revenues, instead of Federal Revenues, which caused the related federal expenditures to be missed in the initial SEFA preparation. Cause: Internal controls are not in place to identify all contract and grant agreements that are federally funded. Effect: The amount of federal expenditures reported on the SEFA was initially understated by $30,500. The final SEFA included in the single audit reporting package accurately included these amounts. By not having proper controls over SEFA preparation and federal award identification, there is a risk that the SEFA will not reflect all of the federal awards subject to the Uniform Guidance. Questioned Costs: None. Repeat Finding of Immediate Prior Year: Yes. Finding 2022-002 – Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA); AL Nos. 93.434 and 93.575. Recommendation: We recommend that the School review internal control procedures to ensure timely identification of federal awards and related expenditures. Views of Responsible Officials and Planned Corrective Action: The School agrees with this finding. Lisa Hendricks, the Director of Finance, and the 3rd party accountant will work closely to develop a grant tracking system that determines the source of the grant funds prior to expending any of the funds.