Audit 304637

FY End
2023-06-30
Total Expended
$2.64M
Findings
6
Programs
10
Organization: Patriot Preparatory Academy (OH)
Year: 2023 Accepted: 2024-04-26

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
394752 2023-001 Material Weakness Yes F
394753 2023-001 Material Weakness Yes F
394754 2023-001 Material Weakness Yes F
971194 2023-001 Material Weakness Yes F
971195 2023-001 Material Weakness Yes F
971196 2023-001 Material Weakness Yes F

Programs

Contacts

Name Title Type
KQZLMU3BDYG3 Joel McCloskey Auditee
6148645332 Robyn Roush Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures are recognized following 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Academy has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of federal awards expenditures (the schedule) is a summary of the activity of the Academy’s federal award programs. 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 Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy.
Title: Note 4 - Subrecipients Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures are recognized following 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Academy has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Academy passes certain federal awards received from the Ohio Department of Education to other governments or not-for-profit agencies (subrecipients). As Note 2 describes, the Academy reports expenditures of Federal awards to subrecipients when paid in cash. As a pass-through entity, the Academy has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.
Title: Note 5 – Child Nutrition Cluster Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures are recognized following 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Academy has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Academy commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this schedule, the Academy assumes it expends federal monies first.

Finding Details

2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.