Audit 295693

FY End
2023-06-30
Total Expended
$1.59M
Findings
24
Programs
10
Year: 2023 Accepted: 2024-03-18
Auditor: Forvis

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
380944 2023-003 Significant Deficiency Yes AB
380945 2023-004 Significant Deficiency Yes G
380946 2023-003 Significant Deficiency Yes AB
380947 2023-004 Significant Deficiency Yes G
380948 2023-005 Material Weakness - L
380949 2023-005 Material Weakness - L
380950 2023-006 Material Weakness - AB
380951 2023-006 Material Weakness - AB
380952 2023-006 Material Weakness - AB
380953 2023-006 Material Weakness - AB
380954 2023-006 Material Weakness - AB
380955 2023-006 Material Weakness - AB
957386 2023-003 Significant Deficiency Yes AB
957387 2023-004 Significant Deficiency Yes G
957388 2023-003 Significant Deficiency Yes AB
957389 2023-004 Significant Deficiency Yes G
957390 2023-005 Material Weakness - L
957391 2023-005 Material Weakness - L
957392 2023-006 Material Weakness - AB
957393 2023-006 Material Weakness - AB
957394 2023-006 Material Weakness - AB
957395 2023-006 Material Weakness - AB
957396 2023-006 Material Weakness - AB
957397 2023-006 Material Weakness - AB

Contacts

Name Title Type
KPF5B6UKHQY9 Nachum Golodner Auditee
7024316260 Amanda Eaves Auditor
No contacts on file

Notes to SEFA

Title: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The School did not have any federal loan programs during the year ended June 30, 2023.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mater Academy of Northern Nevada (the School) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule 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 or changes in net position of the School.
Title: Pass-Through Entities Identifying Number Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the School determined that no identifying number is assigned for the program, or the School was unable to obtain an identifying number from the pass-through entity.

Finding Details

U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Two expenditures tested did not have evidence of review and approval. One request for reimbursement of allowable costs submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 21 expenditures out of 137 expenditures was selected for testing. We also tested the corresponding request for reimbursement of allowable cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure that all principal approvals are documented in writing or electronic approval in the system which can be date stamped by the system. Payroll will not be run, nor grant reimbursement requests submitted, until proper approval is received.
U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over compliance with Level of Effort – Maintenance of Effort in accordance with the Uniform Guidance. Condition – The School incorrectly calculated Maintenance of Effort and there was no documentation of review by an individual independent of the preparation of the calculation. Questioned Costs – None Context/Sampling – Maintenance of Effort reporting is required to be filed annually. FORVIS tested the annual calculation performed during the fiscal year ended June 30, 2023. Cause – The School did not have adequate internal controls to ensure review of Maintenance of Effort reporting was performed and documented prior to submission. Maintenance of Effort was not calculated correctly due to the financial data used in the calculation being on a different basis of accounting and including incorrect financial statement line items. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School create a standard template to prepare the Maintenance of Effort calculation indicating which specific financial statements and line items to include in the calculation to allow for consistent and accurate reporting in accordance with the compliance requirement and policies and procedures to ensure that the calculation and report are reviewed by someone knowledgeable of the requirements prior to submission. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the Maintenance of Effort reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Two expenditures tested did not have evidence of review and approval. One request for reimbursement of allowable costs submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 21 expenditures out of 137 expenditures was selected for testing. We also tested the corresponding request for reimbursement of allowable cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure that all principal approvals are documented in writing or electronic approval in the system which can be date stamped by the system. Payroll will not be run, nor grant reimbursement requests submitted, until proper approval is received.
U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over compliance with Level of Effort – Maintenance of Effort in accordance with the Uniform Guidance. Condition – The School incorrectly calculated Maintenance of Effort and there was no documentation of review by an individual independent of the preparation of the calculation. Questioned Costs – None Context/Sampling – Maintenance of Effort reporting is required to be filed annually. FORVIS tested the annual calculation performed during the fiscal year ended June 30, 2023. Cause – The School did not have adequate internal controls to ensure review of Maintenance of Effort reporting was performed and documented prior to submission. Maintenance of Effort was not calculated correctly due to the financial data used in the calculation being on a different basis of accounting and including incorrect financial statement line items. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School create a standard template to prepare the Maintenance of Effort calculation indicating which specific financial statements and line items to include in the calculation to allow for consistent and accurate reporting in accordance with the compliance requirement and policies and procedures to ensure that the calculation and report are reviewed by someone knowledgeable of the requirements prior to submission. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the Maintenance of Effort reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through Nevada Department of Education Federal Assistance Listing Number 84.425C and 84.425D – COVID-19 – Education Stabilization Fund Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did not report grant expenditures by the required categories to the Nevada Department of Education (NDE), there was no support maintained for the data that was submitted including FTEs, and there was no review of the report before it was submitted. Questioned Costs – None Context/Sampling – The NDE requires information to be reported by Local Education Agencies in order to complete the NDE’s annual ESSER Reporting. Cause – The School did not have adequate internal controls to ensure that the data reported to the NDE was accurate, that the form was completed correctly, and that there was no review of the report prior to submission. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School put in place controls over reporting required by the School’s grants to ensure complete and accurate reporting in accordance with the compliance requirement. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the ESSER reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through Nevada Department of Education Federal Assistance Listing Number 84.425C and 84.425D – COVID-19 – Education Stabilization Fund Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did not report grant expenditures by the required categories to the Nevada Department of Education (NDE), there was no support maintained for the data that was submitted including FTEs, and there was no review of the report before it was submitted. Questioned Costs – None Context/Sampling – The NDE requires information to be reported by Local Education Agencies in order to complete the NDE’s annual ESSER Reporting. Cause – The School did not have adequate internal controls to ensure that the data reported to the NDE was accurate, that the form was completed correctly, and that there was no review of the report prior to submission. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School put in place controls over reporting required by the School’s grants to ensure complete and accurate reporting in accordance with the compliance requirement. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the ESSER reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Two expenditures tested did not have evidence of review and approval. One request for reimbursement of allowable costs submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 21 expenditures out of 137 expenditures was selected for testing. We also tested the corresponding request for reimbursement of allowable cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure that all principal approvals are documented in writing or electronic approval in the system which can be date stamped by the system. Payroll will not be run, nor grant reimbursement requests submitted, until proper approval is received.
U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over compliance with Level of Effort – Maintenance of Effort in accordance with the Uniform Guidance. Condition – The School incorrectly calculated Maintenance of Effort and there was no documentation of review by an individual independent of the preparation of the calculation. Questioned Costs – None Context/Sampling – Maintenance of Effort reporting is required to be filed annually. FORVIS tested the annual calculation performed during the fiscal year ended June 30, 2023. Cause – The School did not have adequate internal controls to ensure review of Maintenance of Effort reporting was performed and documented prior to submission. Maintenance of Effort was not calculated correctly due to the financial data used in the calculation being on a different basis of accounting and including incorrect financial statement line items. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School create a standard template to prepare the Maintenance of Effort calculation indicating which specific financial statements and line items to include in the calculation to allow for consistent and accurate reporting in accordance with the compliance requirement and policies and procedures to ensure that the calculation and report are reviewed by someone knowledgeable of the requirements prior to submission. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the Maintenance of Effort reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Two expenditures tested did not have evidence of review and approval. One request for reimbursement of allowable costs submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 21 expenditures out of 137 expenditures was selected for testing. We also tested the corresponding request for reimbursement of allowable cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure that all principal approvals are documented in writing or electronic approval in the system which can be date stamped by the system. Payroll will not be run, nor grant reimbursement requests submitted, until proper approval is received.
U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over compliance with Level of Effort – Maintenance of Effort in accordance with the Uniform Guidance. Condition – The School incorrectly calculated Maintenance of Effort and there was no documentation of review by an individual independent of the preparation of the calculation. Questioned Costs – None Context/Sampling – Maintenance of Effort reporting is required to be filed annually. FORVIS tested the annual calculation performed during the fiscal year ended June 30, 2023. Cause – The School did not have adequate internal controls to ensure review of Maintenance of Effort reporting was performed and documented prior to submission. Maintenance of Effort was not calculated correctly due to the financial data used in the calculation being on a different basis of accounting and including incorrect financial statement line items. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School create a standard template to prepare the Maintenance of Effort calculation indicating which specific financial statements and line items to include in the calculation to allow for consistent and accurate reporting in accordance with the compliance requirement and policies and procedures to ensure that the calculation and report are reviewed by someone knowledgeable of the requirements prior to submission. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the Maintenance of Effort reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through Nevada Department of Education Federal Assistance Listing Number 84.425C and 84.425D – COVID-19 – Education Stabilization Fund Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did not report grant expenditures by the required categories to the Nevada Department of Education (NDE), there was no support maintained for the data that was submitted including FTEs, and there was no review of the report before it was submitted. Questioned Costs – None Context/Sampling – The NDE requires information to be reported by Local Education Agencies in order to complete the NDE’s annual ESSER Reporting. Cause – The School did not have adequate internal controls to ensure that the data reported to the NDE was accurate, that the form was completed correctly, and that there was no review of the report prior to submission. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School put in place controls over reporting required by the School’s grants to ensure complete and accurate reporting in accordance with the compliance requirement. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the ESSER reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through Nevada Department of Education Federal Assistance Listing Number 84.425C and 84.425D – COVID-19 – Education Stabilization Fund Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did not report grant expenditures by the required categories to the Nevada Department of Education (NDE), there was no support maintained for the data that was submitted including FTEs, and there was no review of the report before it was submitted. Questioned Costs – None Context/Sampling – The NDE requires information to be reported by Local Education Agencies in order to complete the NDE’s annual ESSER Reporting. Cause – The School did not have adequate internal controls to ensure that the data reported to the NDE was accurate, that the form was completed correctly, and that there was no review of the report prior to submission. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School put in place controls over reporting required by the School’s grants to ensure complete and accurate reporting in accordance with the compliance requirement. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the ESSER reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.
U.S. Department of Education/Passed Through Nevada Department of Education and State of Nevada State Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, and 84.425U – COVID-19 – Education Stabilization Fund CARES ESSER I (Formula) – APP-01808-L2K9-A1 – Award Date 3/13/20-9/30/22 CRRSA ESSER II – APP-01384-P9Y6-A1 – Award Date 1/15/21-9/30/23 ARP ESSER – Award Date 7/1/21-9/30/24 ARP ESSER Final One-Third Allocation – Award Date 7/1/22-9/30/24 Elementary and Secondary School Emergency Relief (ESSER) Fund - CARES Act (SBMH) Governor's Emergency Education Relief Fund (GEER) - (SBMH) Pass-Through Entity Identifying Number 22-748-44437 Award Date 12/29/21-9/30/23 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Four expenditures tested did not have evidence of approval of review and approval. One request for reimbursement submission tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 333 expenditures was selected for testing. We also tested the corresponding cost submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or potential effect – Unallowable costs may be charged to the program and submitted for reimbursement and not detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions – A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.