FAC Explorer

Audit 296798

FY End
2023-06-30
Total Expended
$3.52M
Findings
2
Programs
8
Organization: Integration Charter Schools (NY)
Year: 2023 Accepted: 2024-03-22
Auditor: Mengel Metzger Barr and CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
383791 2023-002 Significant Deficiency Yes I
960233 2023-002 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $502,692 - 1
10.553 School Breakfast Program $179,974 - 0
84.425 Education Stabilization Fund $40,270 Yes 0
10.555 National School Lunch Program $29,327 - 0
84.010 Title I Grants to Local Educational Agencies $19,761 - 0
84.424 Student Support and Academic Enrichment Program $8,000 - 0
84.367 Improving Teacher Quality State Grants $2,882 - 0
10.649 Pandemic Ebt Administrative Costs $1,256 - 0

Contacts

Name Title Type
LUBUD6WAKE53 Jeanine Taylor Auditee
3478552238 Michelle Cain Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The above schedule of expenditures of federal awards includes the federal grant activity of Integration Charter Schools and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Integration Charter Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The above schedule of expenditures of federal awards includes the federal grant activity of Integration Charter Schools and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Integration Charter Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Criteria In accordance with 2 CFR 200.214, non-federal entities are subject to the procurement, debarment and suspension regulations implementing executive orders and 2 CFR part 180. These regulations restrict non-federal entities from entering into covered transactions with certain parties that are deemed debarred, suspended or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition and Context: Integration Charter Schools’ internal controls over compliance are not followed despite having a written policy. In accordance with 2 CFR 200 Appendix XI, Part 3-I-2, when an entity enters into a covered transaction, a non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995, is not suspended, or debarred or otherwise excluded from participating in the transaction. Integration Charter Schools has a written policy that states prior to entering into the procurement process, each contractor will be researched to determine that they have not been suspended or debarred. However, Integration Charter Schools did not follow the policy in place. Rather, the Charter School, on a quarterly basis, was verifying entities that received federal awards were not suspended or debarred after the transaction was complete. Effect Due to the verification procedure occurring after the cash disbursement was made the Charter School could have awarded suspended or debarred entities federal awards. Cause: The Charter School did not follow the suspension and debarment policies in place. Recommendation We recommend the Charter School develop a control, with formal written documentation, showing the Charter School has researched the entity prior to the Charter School entering into the covered transaction. This documentation should be reviewed by the proper authority to ensure the entity has been researched prior to entering into the covered transaction. Management’s response Refer to Corrective Action Plan attached.
Finding 2023-002
Criteria In accordance with 2 CFR 200.214, non-federal entities are subject to the procurement, debarment and suspension regulations implementing executive orders and 2 CFR part 180. These regulations restrict non-federal entities from entering into covered transactions with certain parties that are deemed debarred, suspended or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition and Context: Integration Charter Schools’ internal controls over compliance are not followed despite having a written policy. In accordance with 2 CFR 200 Appendix XI, Part 3-I-2, when an entity enters into a covered transaction, a non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995, is not suspended, or debarred or otherwise excluded from participating in the transaction. Integration Charter Schools has a written policy that states prior to entering into the procurement process, each contractor will be researched to determine that they have not been suspended or debarred. However, Integration Charter Schools did not follow the policy in place. Rather, the Charter School, on a quarterly basis, was verifying entities that received federal awards were not suspended or debarred after the transaction was complete. Effect Due to the verification procedure occurring after the cash disbursement was made the Charter School could have awarded suspended or debarred entities federal awards. Cause: The Charter School did not follow the suspension and debarment policies in place. Recommendation We recommend the Charter School develop a control, with formal written documentation, showing the Charter School has researched the entity prior to the Charter School entering into the covered transaction. This documentation should be reviewed by the proper authority to ensure the entity has been researched prior to entering into the covered transaction. Management’s response Refer to Corrective Action Plan attached.