Audit 258987

FY End
2022-06-30
Total Expended
$6.33M
Findings
24
Programs
9
Organization: Pinecrest Academy of Nevada (NV)
Year: 2022 Accepted: 2023-08-10
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
261138 2022-014 Material Weakness - AB
261139 2022-016 Material Weakness - I
261140 2022-017 Material Weakness Yes P
261141 2022-014 Material Weakness - AB
261142 2022-015 Material Weakness - C
261143 2022-017 Material Weakness Yes P
261144 2022-014 Material Weakness - AB
261145 2022-017 Material Weakness Yes P
261146 2022-014 Material Weakness - AB
261147 2022-017 Material Weakness Yes P
261148 2022-014 Material Weakness - AB
261149 2022-017 Material Weakness Yes P
837580 2022-014 Material Weakness - AB
837581 2022-016 Material Weakness - I
837582 2022-017 Material Weakness Yes P
837583 2022-014 Material Weakness - AB
837584 2022-015 Material Weakness - C
837585 2022-017 Material Weakness Yes P
837586 2022-014 Material Weakness - AB
837587 2022-017 Material Weakness Yes P
837588 2022-014 Material Weakness - AB
837589 2022-017 Material Weakness Yes P
837590 2022-014 Material Weakness - AB
837591 2022-017 Material Weakness Yes P

Contacts

Name Title Type
DBTKVJYNQCT5 Nachum Golodner Auditee
7024316260 Kurt Schlicker Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Pinecrest Academy of Nevada (the School) under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the School, it is not intended to and does not present the financial position, changes in net position or fund balance of the School.
Title: PRIOR YEAR EXPENDITURES Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School recognized allowable pre-award costs of $42,212 under the Charter Schools (84.282) program in the schedule of expenditures of federal awards during the year ended June 30, 2022 as the award was not executed until the year ended June 30, 2022 and the award allowed for reimbursement of pre-award costs.
Title: SUBSEQUENT EVENTS Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School incurred allowable expenditures in excess of certain grant awards during the year, which were amended subsequent to June 30, 2022. These amendments increased the total amount allowable for reimbursement and allowed the School to subsequently claim expenses incurred during the year ended June 30, 2022. The following amounts will be recognized in the schedule of expenditures of federal awards for the year ended June 30, 2023 due to the amendments being executed subsequent to June 30, 2022: (SEE TABLE IN NOTE)

Finding Details

2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-016: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.282 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non-federal entity must use its own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procedures conform to applicable federal law and standards. Condition: The School has policies and procedures which make reference to state and federal regulation and law, but the policies have not been updated with sufficient clarity and detail to ensure compliance with federal law and standards. Cause: The School did not have adequate internal controls to review its policy and procedures to include federal procurement requirements. Effect: The School may follow its documented procurement policies and not identify non-compliance with federal procurement law in cases where federal procurement law is more restrictive. Questioned Costs: None noted Context/Sampling: The School?s procurement procedures were examined in their entirety. Repeat Finding from Prior Year: No Recommendation: We recommend the School review its procurement policy and include federal procurement requirements. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-015: U.S. Department of Education Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 Cash Management Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.287 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Requests for reimbursement did not have evidence of review and approval by an individual independent of the preparation process. Cause: The School did not have adequate internal controls to ensure review of requests for reimbursement occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: A non-statistical sample of two out of a population of four requests for reimbursement was selected for testing. There was no evidence of review on either of the two requests tested. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of requests for reimbursement occur and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-016: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.282 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non-federal entity must use its own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procedures conform to applicable federal law and standards. Condition: The School has policies and procedures which make reference to state and federal regulation and law, but the policies have not been updated with sufficient clarity and detail to ensure compliance with federal law and standards. Cause: The School did not have adequate internal controls to review its policy and procedures to include federal procurement requirements. Effect: The School may follow its documented procurement policies and not identify non-compliance with federal procurement law in cases where federal procurement law is more restrictive. Questioned Costs: None noted Context/Sampling: The School?s procurement procedures were examined in their entirety. Repeat Finding from Prior Year: No Recommendation: We recommend the School review its procurement policy and include federal procurement requirements. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-015: U.S. Department of Education Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 Cash Management Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.287 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Requests for reimbursement did not have evidence of review and approval by an individual independent of the preparation process. Cause: The School did not have adequate internal controls to ensure review of requests for reimbursement occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: A non-statistical sample of two out of a population of four requests for reimbursement was selected for testing. There was no evidence of review on either of the two requests tested. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of requests for reimbursement occur and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.
2022-014: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Charter Schools, 84.282 A non-statistical sample of 11 goods and services transactions out of a population of 33 and the total population of three payroll transactions was selected for testing. There was no evidence of review on any of the 14 transactions tested. The 14 transactions totaled $780,268 out of the aggregate total expenditure population of $999,390. Twenty-First Century Community Learning Centers, 84.287 A non-statistical sample of four payroll transactions out of a population of eight was selected for testing. There was no evidence of review on any of the four transactions. The four transactions totaled $147,028 out of the aggregate total expenditure population of $223,954. Education Stabilization Fund, 84.425 A non-statistical sample of three requests for reimbursement out of a population of 7 was selected for testing. There were 61 transactions tested as part of those three requests for reimbursement. There was no evidence of review on any of the 61 transactions tested. The 61 transactions totaled $1,023,333 out of the aggregate total expenditure population of $2,437,914. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.
2022-017: U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority Twenty-First Century Community Learning Centers, 84.287 COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 84.282, 84.287, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). In addition, Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process of the SEFA. Condition: There was no evidence of review and approval on the preparation of the initial SEFA and adjustments were required to ensure it was fairly stated. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Misstatements on the SEFA could occur and not be detected by the School. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Prior to correction, the Charter School program was understated by $42,212 and the Education Stabilization Fund was overstated by $45,670. In the aggregate, the SEFA was overstated by $265,802. Repeat Finding from Prior Year: Yes ? prior year finding 2021-002. Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.