Audit 24460

2022-005) Preparation of Schedule of Expenditures and Federal Awards Assistance Listing Numbers Name of Federal Program or Cluster 84.425D ESSER ? Formula ? COVID-19 84:425U ESSER III EB Interventions - COVID-19 84:425B Real - COVID-19 Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Universe/ Population Size: None Sample size: None Condition: The initial SEFA prepared by the Foundation?s personnel did not reconcile the federal expenditures reported on the SEFA to the federal revenue received by granting agency. Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year. Inaccurate reporting may result in improper auditing of the wrong federal programs in any given year and non-compliance with federal regulations. Cause: The Foundation receives multiple sources of revenues, including both federal and state, which fund the costs of the of the charter schools. The classification of program revenue and therefore federal expenditures was not accurate and not detected during internal review, which resulted in errors on the initial SEFA. This is a repeat finding from the prior year. Recommendation: The Foundation should strengthen its controls including its review and approval processes over the information and balances that is accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal reimbursements. View of Responsible Official: Management agrees with the finding. See corrective action plan attached.

2022-005) Preparation of Schedule of Expenditures and Federal Awards Assistance Listing Numbers Name of Federal Program or Cluster 84.425D ESSER ? Formula ? COVID-19 84:425U ESSER III EB Interventions - COVID-19 84:425B Real - COVID-19 Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Universe/ Population Size: None Sample size: None Condition: The initial SEFA prepared by the Foundation?s personnel did not reconcile the federal expenditures reported on the SEFA to the federal revenue received by granting agency. Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year. Inaccurate reporting may result in improper auditing of the wrong federal programs in any given year and non-compliance with federal regulations. Cause: The Foundation receives multiple sources of revenues, including both federal and state, which fund the costs of the of the charter schools. The classification of program revenue and therefore federal expenditures was not accurate and not detected during internal review, which resulted in errors on the initial SEFA. This is a repeat finding from the prior year. Recommendation: The Foundation should strengthen its controls including its review and approval processes over the information and balances that is accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal reimbursements. View of Responsible Official: Management agrees with the finding. See corrective action plan attached.

2022-005) Preparation of Schedule of Expenditures and Federal Awards Assistance Listing Numbers Name of Federal Program or Cluster 84.425D ESSER ? Formula ? COVID-19 84:425U ESSER III EB Interventions - COVID-19 84:425B Real - COVID-19 Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Universe/ Population Size: None Sample size: None Condition: The initial SEFA prepared by the Foundation?s personnel did not reconcile the federal expenditures reported on the SEFA to the federal revenue received by granting agency. Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year. Inaccurate reporting may result in improper auditing of the wrong federal programs in any given year and non-compliance with federal regulations. Cause: The Foundation receives multiple sources of revenues, including both federal and state, which fund the costs of the of the charter schools. The classification of program revenue and therefore federal expenditures was not accurate and not detected during internal review, which resulted in errors on the initial SEFA. This is a repeat finding from the prior year. Recommendation: The Foundation should strengthen its controls including its review and approval processes over the information and balances that is accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal reimbursements. View of Responsible Official: Management agrees with the finding. See corrective action plan attached.

2022-005) Preparation of Schedule of Expenditures and Federal Awards Assistance Listing Numbers Name of Federal Program or Cluster 84.425D ESSER ? Formula ? COVID-19 84:425U ESSER III EB Interventions - COVID-19 84:425B Real - COVID-19 Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Universe/ Population Size: None Sample size: None Condition: The initial SEFA prepared by the Foundation?s personnel did not reconcile the federal expenditures reported on the SEFA to the federal revenue received by granting agency. Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year. Inaccurate reporting may result in improper auditing of the wrong federal programs in any given year and non-compliance with federal regulations. Cause: The Foundation receives multiple sources of revenues, including both federal and state, which fund the costs of the of the charter schools. The classification of program revenue and therefore federal expenditures was not accurate and not detected during internal review, which resulted in errors on the initial SEFA. This is a repeat finding from the prior year. Recommendation: The Foundation should strengthen its controls including its review and approval processes over the information and balances that is accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal reimbursements. View of Responsible Official: Management agrees with the finding. See corrective action plan attached.

2022-005) Preparation of Schedule of Expenditures and Federal Awards Assistance Listing Numbers Name of Federal Program or Cluster 84.425D ESSER ? Formula ? COVID-19 84:425U ESSER III EB Interventions - COVID-19 84:425B Real - COVID-19 Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Universe/ Population Size: None Sample size: None Condition: The initial SEFA prepared by the Foundation?s personnel did not reconcile the federal expenditures reported on the SEFA to the federal revenue received by granting agency. Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year. Inaccurate reporting may result in improper auditing of the wrong federal programs in any given year and non-compliance with federal regulations. Cause: The Foundation receives multiple sources of revenues, including both federal and state, which fund the costs of the of the charter schools. The classification of program revenue and therefore federal expenditures was not accurate and not detected during internal review, which resulted in errors on the initial SEFA. This is a repeat finding from the prior year. Recommendation: The Foundation should strengthen its controls including its review and approval processes over the information and balances that is accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal reimbursements. View of Responsible Official: Management agrees with the finding. See corrective action plan attached.

2022-005) Preparation of Schedule of Expenditures and Federal Awards Assistance Listing Numbers Name of Federal Program or Cluster 84.425D ESSER ? Formula ? COVID-19 84:425U ESSER III EB Interventions - COVID-19 84:425B Real - COVID-19 Questioned Costs: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Universe/ Population Size: None Sample size: None Condition: The initial SEFA prepared by the Foundation?s personnel did not reconcile the federal expenditures reported on the SEFA to the federal revenue received by granting agency. Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is the basis used to determine the major federal programs to be audited in a fiscal year. Inaccurate reporting may result in improper auditing of the wrong federal programs in any given year and non-compliance with federal regulations. Cause: The Foundation receives multiple sources of revenues, including both federal and state, which fund the costs of the of the charter schools. The classification of program revenue and therefore federal expenditures was not accurate and not detected during internal review, which resulted in errors on the initial SEFA. This is a repeat finding from the prior year. Recommendation: The Foundation should strengthen its controls including its review and approval processes over the information and balances that is accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal reimbursements. View of Responsible Official: Management agrees with the finding. See corrective action plan attached.