FAC Explorer

Audit 295695

FY End
2023-06-30
Total Expended
$1.66M
Findings
22
Programs
8
Organization: Pinecrest Academy of Northern Nevada (NV)
Year: 2023 Accepted: 2024-03-18
Auditor: Forvis

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380956 2023-005 Material Weakness Yes AB
380957 2023-006 Significant Deficiency - AB
380958 2023-006 Significant Deficiency - AB
380959 2023-006 Significant Deficiency - AB
380960 2023-006 Significant Deficiency - AB
380961 2023-006 Significant Deficiency - AB
380962 2023-006 Significant Deficiency - AB
380963 2023-006 Significant Deficiency - AB
380964 2023-007 Material Weakness Yes I
380965 2023-008 Material Weakness - L
380966 2023-008 Material Weakness - L
957398 2023-005 Material Weakness Yes AB
957399 2023-006 Significant Deficiency - AB
957400 2023-006 Significant Deficiency - AB
957401 2023-006 Significant Deficiency - AB
957402 2023-006 Significant Deficiency - AB
957403 2023-006 Significant Deficiency - AB
957404 2023-006 Significant Deficiency - AB
957405 2023-006 Significant Deficiency - AB
957406 2023-007 Material Weakness Yes I
957407 2023-008 Material Weakness - L
957408 2023-008 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $562,187 Yes 2
84.425 Education Stabilization Fund $179,783 Yes 1
84.367 Improving Teacher Quality State Grants $38,038 - 0
10.555 National School Lunch Program $34,740 - 0
10.553 School Breakfast Program $32,923 - 0
84.027 Special Education_grants to States $14,083 - 0
10.565 Commodity Supplemental Food Program $1,147 - 0
94.243 Advancing Wellness and Resiliency in Education (project Aware) $350 - 0

Contacts

Name Title Type
HLTVK7ZMRZP1 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 Pinecrest 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

Finding 2023-005
Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Repeat Finding 2022-011) U.S. Department of Education / Passed-through Opportunity 180 Federal Assistance Listing Number 84.282B – Charter Schools Award Number S282A200009-20A, Subgrantee Number CSP-2021-56278, Award Date April 1, 2021–August 31, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – 13 of the expenditures tested did not have evidence of review and approval prior to the expenditure. Questioned Costs – None Context/Sampling – A non-statistical sample of 26 expenditures out of 170 expenditures was selected for testing. 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 that 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.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-007
Procurement, Suspension and Debarment (Repeat Finding 2022-012) U.S. Department of Education/Passed-through Opportunity 180 Federal Assistance Listing Number 84.282B – Charter Schools Award Number S282A200009-20A, Subgrantee Number CSP-2021-56278, Award Date April 1, 2021–August 31, 2023 Criteria – Management is responsible for internal controls over compliance with Procurement, Suspension, and Debarment in accordance with the Uniform Guidance. Condition – The School has policies and procedures that make reference to state regulation and law, but the policies have not been updated with sufficient clarity and detail to ensure compliance with federal law and standards. Nine vendors tested did not have evidence of review and approval of the bids/quotes obtained. Eight vendors tested did not have evidence of review and approval of the process of verifying suspension and debarment procedures. Questioned Costs – None Context/Sampling – A non-statistical sample of 10 vendors was selected for testing. Cause – The School did not have adequate internal controls to review its policy and procedures to include federal procurement requirements. Effect or Potential 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. The School could enter into a transaction with a suspended or debarred vendor. Recommendation – We recommend the School review its procurement policy and include federal procurement requirements with proper minimum and maximum thresholds and requirements of the type of bids/quotes and documentation required to meet federal compliance requirements. We recommend the School document review and approval of all approvals and quotes/bids to ensure compliance with the Uniform Guidance. We recommend the School maintain documentation that vendors have been verified to not be suspended or debarred before entering into a transaction with a vendor. Views of Responsible Officials and Planned Corrective Actions – Going forward, as part of the process of verifying suspension and debarment, a screenshot will be saved as evidence of the process. Additionally, Academica Nevada, the School’s management company, is in the process of reviewing all existing policies and procedures to ensure clarity and compliance with federal and state standards.
Finding 2023-008
Reporting 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 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did report the correct amount of grant expenditures to the Nevada Department of Education; 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 Nevada Department of Education (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 a review of the report was performed 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 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.
Finding 2023-008
Reporting 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 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did report the correct amount of grant expenditures to the Nevada Department of Education; 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 Nevada Department of Education (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 a review of the report was performed 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 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.
Finding 2023-005
Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Repeat Finding 2022-011) U.S. Department of Education / Passed-through Opportunity 180 Federal Assistance Listing Number 84.282B – Charter Schools Award Number S282A200009-20A, Subgrantee Number CSP-2021-56278, Award Date April 1, 2021–August 31, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – 13 of the expenditures tested did not have evidence of review and approval prior to the expenditure. Questioned Costs – None Context/Sampling – A non-statistical sample of 26 expenditures out of 170 expenditures was selected for testing. 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 that 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.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-006
Activities Allowed or Unallowed and Allowable Costs/Cost Principles U.S. Department of Education/Passed-through the State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.425, 84.425C, 84.425D, 84.425U – Education Stabilization Fund ARP ESSER, APP-01634-Z4J7-A1, Award Date July 1, 2021–September 30, 2024 ARP ESSER Final One-Third Allocation, Award Date July 1, 2022–September 30, 2024 ARP ESSER Summer & Afterschool, Award Date July 1, 2022–September 30, 2024 CRRSA ESSER II, APP-01393-L1S1-A1, Award Date January 15, 2021–September 30, 2023 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Activities Allowed/or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – Five expenditures tested did not have evidence of review and approval prior to the expenditure. One submission for reimbursement did not have evidence of review and approval prior to submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 40 expenditures out of 358 expenditures was selected for testing. We also tested the submission for reimbursement related to 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 grants submitted, until proper approval is received.
Finding 2023-007
Procurement, Suspension and Debarment (Repeat Finding 2022-012) U.S. Department of Education/Passed-through Opportunity 180 Federal Assistance Listing Number 84.282B – Charter Schools Award Number S282A200009-20A, Subgrantee Number CSP-2021-56278, Award Date April 1, 2021–August 31, 2023 Criteria – Management is responsible for internal controls over compliance with Procurement, Suspension, and Debarment in accordance with the Uniform Guidance. Condition – The School has policies and procedures that make reference to state regulation and law, but the policies have not been updated with sufficient clarity and detail to ensure compliance with federal law and standards. Nine vendors tested did not have evidence of review and approval of the bids/quotes obtained. Eight vendors tested did not have evidence of review and approval of the process of verifying suspension and debarment procedures. Questioned Costs – None Context/Sampling – A non-statistical sample of 10 vendors was selected for testing. Cause – The School did not have adequate internal controls to review its policy and procedures to include federal procurement requirements. Effect or Potential 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. The School could enter into a transaction with a suspended or debarred vendor. Recommendation – We recommend the School review its procurement policy and include federal procurement requirements with proper minimum and maximum thresholds and requirements of the type of bids/quotes and documentation required to meet federal compliance requirements. We recommend the School document review and approval of all approvals and quotes/bids to ensure compliance with the Uniform Guidance. We recommend the School maintain documentation that vendors have been verified to not be suspended or debarred before entering into a transaction with a vendor. Views of Responsible Officials and Planned Corrective Actions – Going forward, as part of the process of verifying suspension and debarment, a screenshot will be saved as evidence of the process. Additionally, Academica Nevada, the School’s management company, is in the process of reviewing all existing policies and procedures to ensure clarity and compliance with federal and state standards.
Finding 2023-008
Reporting 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 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did report the correct amount of grant expenditures to the Nevada Department of Education; 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 Nevada Department of Education (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 a review of the report was performed 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 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.
Finding 2023-008
Reporting 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 Project Number 22-748-106000, Award Date May 25, 2022–September 30, 2023 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – The School did report the correct amount of grant expenditures to the Nevada Department of Education; 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 Nevada Department of Education (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 a review of the report was performed 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 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.