FAC Explorer

Audit 290309

FY End
2022-06-30
Total Expended
$4.71M
Findings
2
Programs
11
Organization: Real Journey Academies INC (CA)
Year: 2022 Accepted: 2024-02-13
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
367191 2022-001 Material Weakness - B
943633 2022-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $1.82M - 0
84.215 Fund for the Improvement of Education $675,250 - 0
84.184 Safe and Drug-Free Schools and Communities_national Programs $572,818 - 0
16.588 Violence Against Women Formula Grants $292,766 - 0
84.010 Title I Grants to Local Educational Agencies $184,817 Yes 0
32.009 Emergency Connectivity Fund Program $129,300 - 0
84.365 English Language Acquisition State Grants $99,002 - 0
84.027 Special Education_grants to States $79,021 - 0
84.424 Student Support and Academic Enrichment Program $42,923 - 0
84.367 Improving Teacher Quality State Grants $38,531 - 0
84.425 Education Stabilization Fund $28,341 - 0

Contacts

Name Title Type
SQC2MGYT7F15 Alan Darby Auditee
9098888458 Scott Gustafsson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the 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: Organization has not elected to use the ten percent de minimis cost rate The accompanying consolidated schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Organization 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the schedule are reported on the 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: Organization has not elected to use the ten percent de minimis cost rate Expenditures reported in the schedule are reported on the 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.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported in the schedule are reported on the 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: Organization has not elected to use the ten percent de minimis cost rate The Organization has not elected to use the ten percent de minimis cost rate.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the 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: Organization has not elected to use the ten percent de minimis cost rate Nonmonetary assistance is reported in this schedule at the fair market value of the commodities received and disbursed. At June 30, 2022, the Organization had no food commodities in inventory.

Finding Details

Finding 2022-001
2022-001 50000 Allowable Cost and Costs Principles (Material Weakness, Noncompliance) Federal Program Affected Program Name: Title I, Part A Assistance Listing Number: 84.010 Pass-through Entity: California Department of Education Federal Agency: U.S. Department of Education Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees working on multiple activities or cost objectives maintain time accounting documentation in accordance with Federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. However, the salaries charged without adequate time accounting documentation totaled $747,565. Context/Sampling A non-statistical sample of 40 transactions out of 1,351 total transactions were selected for testing, which accounted for $795,265 of $935,043 of federal program expenditures. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to the Organization’s lack of established procedures to ensure compliance with the requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 and implement a procedure to address the deficiency currently identified. Corrective Action Plan and Views of Responsible Officials The Organization has developed an action plan to conduct time studies on staff working in program areas supported with federal funding resources. Staff training will be provided to the departments on proper payroll documentation. Time studies will be conducted twice annually. Proper documentation of allowable payroll expenditures will be submitted monthly. Signed documents will be retained on file by the department.
Finding 2022-001
2022-001 50000 Allowable Cost and Costs Principles (Material Weakness, Noncompliance) Federal Program Affected Program Name: Title I, Part A Assistance Listing Number: 84.010 Pass-through Entity: California Department of Education Federal Agency: U.S. Department of Education Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees working on multiple activities or cost objectives maintain time accounting documentation in accordance with Federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. However, the salaries charged without adequate time accounting documentation totaled $747,565. Context/Sampling A non-statistical sample of 40 transactions out of 1,351 total transactions were selected for testing, which accounted for $795,265 of $935,043 of federal program expenditures. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to the Organization’s lack of established procedures to ensure compliance with the requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 and implement a procedure to address the deficiency currently identified. Corrective Action Plan and Views of Responsible Officials The Organization has developed an action plan to conduct time studies on staff working in program areas supported with federal funding resources. Staff training will be provided to the departments on proper payroll documentation. Time studies will be conducted twice annually. Proper documentation of allowable payroll expenditures will be submitted monthly. Signed documents will be retained on file by the department.