Audit 294172

Program: AL 84.282A – Charter Schools Program Criteria In accordance with 2 CFR 200.214, non-federal entities are subject to the procurement, debarment and suspension regulations implementing executive orders and 2 CFR part 180. These regulations restrict non-federal entities from entering into covered transactions with certain parties that are deemed debarred, suspended or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition and Context Our World Neighborhood Charter Schools’ internal controls over compliance did not cause the entity to retain documentation supporting compliance with the suspension and debarment regulations. In accordance with 2 CFR 200 Appendix XI, Part 3-I-2, when an entity enters into a covered transaction, a non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995, is not suspended, debarred or otherwise excluded from participating in the transaction. Our World Neighborhood Charter Schools has a written policy that states prior to entering into the procurement process, each vendor will be researched to determine that they have not been suspended or debarred. However, Our World Neighborhood Charter Schools did not retain supporting documentation to verify this research was performed. Effect Without appropriate documentation, non-compliance could occur which the entity may not identify. Cause Our World Neighborhood Charter Schools’ procurement policies did not include a requirement to retain supporting documentation of the research performed to determine if a vendor is suspended, debarred, or otherwise excluded from participating in the transaction. Recommendation We recommend the Charter Schools develop a control, with formal written documentation, showing the Charter Schools have researched the entity prior to the Charter Schools entering into the covered transaction. This documentation should be reviewed by the proper member of leadership to ensure the entity has been researched prior to entering into the covered transaction. Questioned Costs: N/A Views of Responsible Officials: We are in agreement with the finding and Our World Neighborhood Charter Schools’ management will retain proper support of research performed prior to entering into a covered transaction. Auditor’s Evaluation of the Views of Responsible Officials: Management’s response is appropriate to address the finding. If properly implemented, management’s response would include procedures to prevent reoccurrence in the future.

Program: AL 84.282A – Charter Schools Program Criteria In accordance with 2 CFR 200.214, non-federal entities are subject to the procurement, debarment and suspension regulations implementing executive orders and 2 CFR part 180. These regulations restrict non-federal entities from entering into covered transactions with certain parties that are deemed debarred, suspended or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition and Context Our World Neighborhood Charter Schools’ internal controls over compliance did not cause the entity to retain documentation supporting compliance with the suspension and debarment regulations. In accordance with 2 CFR 200 Appendix XI, Part 3-I-2, when an entity enters into a covered transaction, a non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995, is not suspended, debarred or otherwise excluded from participating in the transaction. Our World Neighborhood Charter Schools has a written policy that states prior to entering into the procurement process, each vendor will be researched to determine that they have not been suspended or debarred. However, Our World Neighborhood Charter Schools did not retain supporting documentation to verify this research was performed. Effect Without appropriate documentation, non-compliance could occur which the entity may not identify. Cause Our World Neighborhood Charter Schools’ procurement policies did not include a requirement to retain supporting documentation of the research performed to determine if a vendor is suspended, debarred, or otherwise excluded from participating in the transaction. Recommendation We recommend the Charter Schools develop a control, with formal written documentation, showing the Charter Schools have researched the entity prior to the Charter Schools entering into the covered transaction. This documentation should be reviewed by the proper member of leadership to ensure the entity has been researched prior to entering into the covered transaction. Questioned Costs: N/A Views of Responsible Officials: We are in agreement with the finding and Our World Neighborhood Charter Schools’ management will retain proper support of research performed prior to entering into a covered transaction. Auditor’s Evaluation of the Views of Responsible Officials: Management’s response is appropriate to address the finding. If properly implemented, management’s response would include procedures to prevent reoccurrence in the future.