FAC Explorer

Audit 303566

FY End
2023-06-30
Total Expended
$1.92M
Findings
2
Programs
5
Organization: River City Education Organization, Inc. (FL)
Year: 2023 Accepted: 2024-04-16
Auditor: Hlb Gravier LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393277 2023-001 Material Weakness - ABF
969719 2023-001 Material Weakness - ABF

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $772,593 Yes 1
10.555 National School Lunch Program $564,160 - 0
84.282 Charter Schools $427,778 - 0
84.367 Improving Teacher Quality State Grants $85,225 - 0
10.553 School Breakfast Program $67,739 - 0

Contacts

Name Title Type
SUKMLJUK6CJ3 Ryan Rewey Auditee
9044143312 Nelson Pastor Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of presentation and significant accoutning polices Accounting Policies: Refer to Form for summary De Minimis Rate Used: N Rate Explanation: The Organization has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Bold City Education, Inc. ("the Comp;any") during its fiscal year July 1, 2022, through 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 Company, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the Company. Expenditures on the schedule are reported on the accrual basis of accounting. Some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. The Company has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agency as of result of such audit, any claim for reimbursement to the grantor agencies would become a liability of the Company. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.

Finding Details

Finding 2023-001
Criteria: Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error and compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. Condition: During the year, there was a significant period (Gap) in which the School’s established internal control policies and procedure over financial reporting and compliance were not followed. Cause: The School experienced turnover in key personnel and external vendors responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Effect: The Gap in internal control prevented financial data from being accumulated and recorded in a timely manner. Accordingly, current management is unable to provide assertions as to the accuracy and valuation, existence, completeness, rights and obligations, presentation and disclosure of recorded balances and amounts nor ensure compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. Recommendation: We recommend that current management continue their efforts to re-establish the School’s internal control to ensure that they can meet their responsibility of preparing and presenting fair financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error and ensure compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
Finding 2023-001
Criteria: Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error and compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. Condition: During the year, there was a significant period (Gap) in which the School’s established internal control policies and procedure over financial reporting and compliance were not followed. Cause: The School experienced turnover in key personnel and external vendors responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Effect: The Gap in internal control prevented financial data from being accumulated and recorded in a timely manner. Accordingly, current management is unable to provide assertions as to the accuracy and valuation, existence, completeness, rights and obligations, presentation and disclosure of recorded balances and amounts nor ensure compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. Recommendation: We recommend that current management continue their efforts to re-establish the School’s internal control to ensure that they can meet their responsibility of preparing and presenting fair financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error and ensure compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.