Audit 289901

Receivables not accrued for reimbursement grants subject to Uniform Guidance and the tracking of federal grant expenditures was not sufficient so that an accurate Schedule of Federal Expenditures (SEFA) could be prepared by the School (Significant Deficiency in Controls and Non-compliance) Condition: Vision Preparatory Charter School, Inc. tracked grant expenditures paid for several federal grants subject to Uniform Guidance by the date the reimbursement request was submitted instead of by the date the expenditure was paid and eligible for reimbursement. As a result of grant reimbursement requests not being properly accrued, the SEFA was understated by $35,580 for the Education Stabilization Fund Program. Also, the schedule did not include all ALN numbers. Criteria: Uniform Guidance requires the SEFA be prepared using eligible expenditures paid in the reporting year for federal funds subject to the Uniform Guidance. CFR Part 200.508 Auditee responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list the individual Federal Awards by Federal Agency, including the Federal Awards expended, name of passthrough entity, ALN number, and total amount provided to recipients. The information contained in the Schedule of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Cause: The School tracked the federal funds expenditures on a reimbursement request basis rather than an eligibility/paid basis and did not reconcile the amounts reported on the Schedule of Federal Awards with the amounts reported in the School’s general ledger. Effect: Receivables were not accrued for these expenditures and the Schedule of Federal Expenditures prepared by the School did not reflect all of the expenditures paid in the fiscal year ended June 30, 2022 and the Schedule of Federal Awards was incorrectly prepared. Questioned Cost: None Context: The SEFA presented for audit was understated by $35,580 for the major program audited (Education Stabilization Fund Grant). Recommendation: We recommend the School track the expenditures in Quickbooks as the expenditures are paid and we recommend the School record receivables for all of the qualifying expenditures paid but not reimbursed by year end and reconcile the Schedule of Federal Awards with the general ledger.

Davis Bacon Act prevailing wage requirements were not included in the contract or discussed with the contractor and Davis Bacon Act record retention requirements were not followed during the duration of the construction project (significant deficiency and noncompliance) Condition: Vision Preparatory Charter School, Inc. did not discuss the need to meet the Davis Bacon Act prevailing wage requirements with the roof contractors before requesting bids or signing a contract. The School also did not receive wage reports during the duration of the project and in turn, did not ensure that the contractor was in compliance with the Davis Bacon Act for prevailing wage rates paid to employees that worked on the roof replacement project prior to completion. The oversight was recognized prior to reimbursement and they took action to try to remedy the non compliance by requesting the missing documentation after the fact. Criteria: Per the 2022 Compliance Supplement, recipients and subrecipients that use ESF funds for minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. Cause: The School had not implemented any controls or processes to ensure compliance with this requirement prior to executing contracts. Effect: Non-compliance with the Uniform Guidance for the federal grant funding received. And this noncompliance could have led to additional funds being needed to compensate for a lower than prevailing wage rate paid to the Contractor's employees or it could have led to disallowed costs and a resulting repayment of federal grant funds received. Questioned Cost: Unknown Recommendation: We recommend the School make the Davis Bacon Act prevailing wage requirements known as a requirement to contractors before accepting bids on projects in the future. We also recommend that the School make sure the contract agreement for the project includes a requirement for the contractor to comply with the Davis Bacon Act regarding prevailing wage rates. And we recommend the School receive weekly wage reports for the duration of the project and compare the wages paid with the prevailing wage rates to ensure compliance with the Davis Bacon Act.

Receivables not accrued for reimbursement grants subject to Uniform Guidance and the tracking of federal grant expenditures was not sufficient so that an accurate Schedule of Federal Expenditures (SEFA) could be prepared by the School (Significant Deficiency in Controls and Non-compliance) Condition: Vision Preparatory Charter School, Inc. tracked grant expenditures paid for several federal grants subject to Uniform Guidance by the date the reimbursement request was submitted instead of by the date the expenditure was paid and eligible for reimbursement. As a result of grant reimbursement requests not being properly accrued, the SEFA was understated by $35,580 for the Education Stabilization Fund Program. Also, the schedule did not include all ALN numbers. Criteria: Uniform Guidance requires the SEFA be prepared using eligible expenditures paid in the reporting year for federal funds subject to the Uniform Guidance. CFR Part 200.508 Auditee responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list the individual Federal Awards by Federal Agency, including the Federal Awards expended, name of passthrough entity, ALN number, and total amount provided to recipients. The information contained in the Schedule of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Cause: The School tracked the federal funds expenditures on a reimbursement request basis rather than an eligibility/paid basis and did not reconcile the amounts reported on the Schedule of Federal Awards with the amounts reported in the School’s general ledger. Effect: Receivables were not accrued for these expenditures and the Schedule of Federal Expenditures prepared by the School did not reflect all of the expenditures paid in the fiscal year ended June 30, 2022 and the Schedule of Federal Awards was incorrectly prepared. Questioned Cost: None Context: The SEFA presented for audit was understated by $35,580 for the major program audited (Education Stabilization Fund Grant). Recommendation: We recommend the School track the expenditures in Quickbooks as the expenditures are paid and we recommend the School record receivables for all of the qualifying expenditures paid but not reimbursed by year end and reconcile the Schedule of Federal Awards with the general ledger.

Receivables not accrued for reimbursement grants subject to Uniform Guidance and the tracking of federal grant expenditures was not sufficient so that an accurate Schedule of Federal Expenditures (SEFA) could be prepared by the School (Significant Deficiency in Controls and Non-compliance) Condition: Vision Preparatory Charter School, Inc. tracked grant expenditures paid for several federal grants subject to Uniform Guidance by the date the reimbursement request was submitted instead of by the date the expenditure was paid and eligible for reimbursement. As a result of grant reimbursement requests not being properly accrued, the SEFA was understated by $35,580 for the Education Stabilization Fund Program. Also, the schedule did not include all ALN numbers. Criteria: Uniform Guidance requires the SEFA be prepared using eligible expenditures paid in the reporting year for federal funds subject to the Uniform Guidance. CFR Part 200.508 Auditee responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list the individual Federal Awards by Federal Agency, including the Federal Awards expended, name of passthrough entity, ALN number, and total amount provided to recipients. The information contained in the Schedule of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Cause: The School tracked the federal funds expenditures on a reimbursement request basis rather than an eligibility/paid basis and did not reconcile the amounts reported on the Schedule of Federal Awards with the amounts reported in the School’s general ledger. Effect: Receivables were not accrued for these expenditures and the Schedule of Federal Expenditures prepared by the School did not reflect all of the expenditures paid in the fiscal year ended June 30, 2022 and the Schedule of Federal Awards was incorrectly prepared. Questioned Cost: None Context: The SEFA presented for audit was understated by $35,580 for the major program audited (Education Stabilization Fund Grant). Recommendation: We recommend the School track the expenditures in Quickbooks as the expenditures are paid and we recommend the School record receivables for all of the qualifying expenditures paid but not reimbursed by year end and reconcile the Schedule of Federal Awards with the general ledger.

Receivables not accrued for reimbursement grants subject to Uniform Guidance and the tracking of federal grant expenditures was not sufficient so that an accurate Schedule of Federal Expenditures (SEFA) could be prepared by the School (Significant Deficiency in Controls and Non-compliance) Condition: Vision Preparatory Charter School, Inc. tracked grant expenditures paid for several federal grants subject to Uniform Guidance by the date the reimbursement request was submitted instead of by the date the expenditure was paid and eligible for reimbursement. As a result of grant reimbursement requests not being properly accrued, the SEFA was understated by $35,580 for the Education Stabilization Fund Program. Also, the schedule did not include all ALN numbers. Criteria: Uniform Guidance requires the SEFA be prepared using eligible expenditures paid in the reporting year for federal funds subject to the Uniform Guidance. CFR Part 200.508 Auditee responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list the individual Federal Awards by Federal Agency, including the Federal Awards expended, name of passthrough entity, ALN number, and total amount provided to recipients. The information contained in the Schedule of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Cause: The School tracked the federal funds expenditures on a reimbursement request basis rather than an eligibility/paid basis and did not reconcile the amounts reported on the Schedule of Federal Awards with the amounts reported in the School’s general ledger. Effect: Receivables were not accrued for these expenditures and the Schedule of Federal Expenditures prepared by the School did not reflect all of the expenditures paid in the fiscal year ended June 30, 2022 and the Schedule of Federal Awards was incorrectly prepared. Questioned Cost: None Context: The SEFA presented for audit was understated by $35,580 for the major program audited (Education Stabilization Fund Grant). Recommendation: We recommend the School track the expenditures in Quickbooks as the expenditures are paid and we recommend the School record receivables for all of the qualifying expenditures paid but not reimbursed by year end and reconcile the Schedule of Federal Awards with the general ledger.

Davis Bacon Act prevailing wage requirements were not included in the contract or discussed with the contractor and Davis Bacon Act record retention requirements were not followed during the duration of the construction project (significant deficiency and noncompliance) Condition: Vision Preparatory Charter School, Inc. did not discuss the need to meet the Davis Bacon Act prevailing wage requirements with the roof contractors before requesting bids or signing a contract. The School also did not receive wage reports during the duration of the project and in turn, did not ensure that the contractor was in compliance with the Davis Bacon Act for prevailing wage rates paid to employees that worked on the roof replacement project prior to completion. The oversight was recognized prior to reimbursement and they took action to try to remedy the non compliance by requesting the missing documentation after the fact. Criteria: Per the 2022 Compliance Supplement, recipients and subrecipients that use ESF funds for minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. Cause: The School had not implemented any controls or processes to ensure compliance with this requirement prior to executing contracts. Effect: Non-compliance with the Uniform Guidance for the federal grant funding received. And this noncompliance could have led to additional funds being needed to compensate for a lower than prevailing wage rate paid to the Contractor's employees or it could have led to disallowed costs and a resulting repayment of federal grant funds received. Questioned Cost: Unknown Recommendation: We recommend the School make the Davis Bacon Act prevailing wage requirements known as a requirement to contractors before accepting bids on projects in the future. We also recommend that the School make sure the contract agreement for the project includes a requirement for the contractor to comply with the Davis Bacon Act regarding prevailing wage rates. And we recommend the School receive weekly wage reports for the duration of the project and compare the wages paid with the prevailing wage rates to ensure compliance with the Davis Bacon Act.

Receivables not accrued for reimbursement grants subject to Uniform Guidance and the tracking of federal grant expenditures was not sufficient so that an accurate Schedule of Federal Expenditures (SEFA) could be prepared by the School (Significant Deficiency in Controls and Non-compliance) Condition: Vision Preparatory Charter School, Inc. tracked grant expenditures paid for several federal grants subject to Uniform Guidance by the date the reimbursement request was submitted instead of by the date the expenditure was paid and eligible for reimbursement. As a result of grant reimbursement requests not being properly accrued, the SEFA was understated by $35,580 for the Education Stabilization Fund Program. Also, the schedule did not include all ALN numbers. Criteria: Uniform Guidance requires the SEFA be prepared using eligible expenditures paid in the reporting year for federal funds subject to the Uniform Guidance. CFR Part 200.508 Auditee responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list the individual Federal Awards by Federal Agency, including the Federal Awards expended, name of passthrough entity, ALN number, and total amount provided to recipients. The information contained in the Schedule of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Cause: The School tracked the federal funds expenditures on a reimbursement request basis rather than an eligibility/paid basis and did not reconcile the amounts reported on the Schedule of Federal Awards with the amounts reported in the School’s general ledger. Effect: Receivables were not accrued for these expenditures and the Schedule of Federal Expenditures prepared by the School did not reflect all of the expenditures paid in the fiscal year ended June 30, 2022 and the Schedule of Federal Awards was incorrectly prepared. Questioned Cost: None Context: The SEFA presented for audit was understated by $35,580 for the major program audited (Education Stabilization Fund Grant). Recommendation: We recommend the School track the expenditures in Quickbooks as the expenditures are paid and we recommend the School record receivables for all of the qualifying expenditures paid but not reimbursed by year end and reconcile the Schedule of Federal Awards with the general ledger.

Receivables not accrued for reimbursement grants subject to Uniform Guidance and the tracking of federal grant expenditures was not sufficient so that an accurate Schedule of Federal Expenditures (SEFA) could be prepared by the School (Significant Deficiency in Controls and Non-compliance) Condition: Vision Preparatory Charter School, Inc. tracked grant expenditures paid for several federal grants subject to Uniform Guidance by the date the reimbursement request was submitted instead of by the date the expenditure was paid and eligible for reimbursement. As a result of grant reimbursement requests not being properly accrued, the SEFA was understated by $35,580 for the Education Stabilization Fund Program. Also, the schedule did not include all ALN numbers. Criteria: Uniform Guidance requires the SEFA be prepared using eligible expenditures paid in the reporting year for federal funds subject to the Uniform Guidance. CFR Part 200.508 Auditee responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list the individual Federal Awards by Federal Agency, including the Federal Awards expended, name of passthrough entity, ALN number, and total amount provided to recipients. The information contained in the Schedule of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Cause: The School tracked the federal funds expenditures on a reimbursement request basis rather than an eligibility/paid basis and did not reconcile the amounts reported on the Schedule of Federal Awards with the amounts reported in the School’s general ledger. Effect: Receivables were not accrued for these expenditures and the Schedule of Federal Expenditures prepared by the School did not reflect all of the expenditures paid in the fiscal year ended June 30, 2022 and the Schedule of Federal Awards was incorrectly prepared. Questioned Cost: None Context: The SEFA presented for audit was understated by $35,580 for the major program audited (Education Stabilization Fund Grant). Recommendation: We recommend the School track the expenditures in Quickbooks as the expenditures are paid and we recommend the School record receivables for all of the qualifying expenditures paid but not reimbursed by year end and reconcile the Schedule of Federal Awards with the general ledger.