FAC Explorer

Audit 308126

FY End
2022-09-30
Total Expended
$762,618
Findings
6
Programs
9
Organization: Breakthrough Charter School (AL)
Year: 2022 Accepted: 2024-06-05
Auditor: Horton Lee Burnett Peacock Cleveland & Grainger PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
399956 2022-001 Material Weakness - P
399957 2022-002 Material Weakness - B
399958 2022-003 - - I
976398 2022-001 Material Weakness - P
976399 2022-002 Material Weakness - B
976400 2022-003 - - I

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $339,895 Yes 3
10.555 National School Lunch Program $113,131 - 0
84.010 Title I Grants to Local Educational Agencies $113,066 - 0
32.009 Emergency Connectivity Fund Program $63,800 - 0
84.027 Special Education_grants to States $59,423 - 0
10.553 School Breakfast Program $46,279 - 0
84.425 Education Stabilization Fund $17,004 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
96.001 Social Security_disability Insurance $20 - 0

Contacts

Name Title Type
HPCHBQVY5JB3 Darren Ramalho Auditee
3342479577 Patricia Oh Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The Schedule of Expenditure of Federal Awards is presented based on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. A one-year availability period is used for revenue recognition for all governmental fund revenues. Expenditures are recorded when the related liability is incurred. 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 Breakthrough Charter School (the “School”) under programs of the federal government for the year ended September 30, 2022. 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, changes in net position, or cash flows of the School.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The Schedule of Expenditure of Federal Awards is presented based on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. A one-year availability period is used for revenue recognition for all governmental fund revenues. Expenditures are recorded when the related liability is incurred. 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 Schedule of Expenditure of Federal Awards is presented based on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. A one-year availability period is used for revenue recognition for all governmental fund revenues. Expenditures are recorded when the related liability is incurred.
Title: INDIRECT COST RATE Accounting Policies: The Schedule of Expenditure of Federal Awards is presented based on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. A one-year availability period is used for revenue recognition for all governmental fund revenues. Expenditures are recorded when the related liability is incurred. 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 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Criteria - Management is responsible for establishing and maintaining effective internal controls and for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition - The Data Collection Form for the year ended September 30, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Cause - The late filing resulted from a lack of internal controls over Federal financial reporting. Effect - The Data Collection Form for the year ended September 30, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Recommendation - We recommend that the School should implement controls to complete the timely submission of the Data Collection Form. Management response - See corrective action plan provided by the Head of School.
Finding 2022-002
Criteria - Management is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that the non-federal entity is managing the federal award in accordance with federal statues, regulations, and terms and conditions of the awards received. Condition - During the audit, we noted failure to document approval of purchases prior to disbursement of federal funds. Cause - The conditions mentioned above were due to failure by the School to comply with established internal control policies over the allowable use of federal funds. Effect - Without appropriate and effective internal controls over compliance, non-compliance could occur which the entity may not identify. Recommendation - We recommend that the School review its internal control policies to properly document approval of purchases prior to disbursement of federal funds. Management response - See corrective action plan provided by the Head of School.
Finding 2022-003
Criteria - Per 2 CFR section 200.320 of the Uniform Guidance, the School must obtain price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Condition - During the audit, we noted an instance in which a purchase exceeding $10,000 for which the School did not obtain price quotations from multiple sources. Cause - The conditions mentioned above were due to violation of the requirements of 2 CFR section 200.320 of the Uniform Guidance. Effect - The conditions mentioned above resulted in a violation of the requirements to comply with 2 CFR section 200.320 of the Uniform Guidance. Questioned costs - $61,821 Recommendation - We recommend that the School review its procurement policies to ensure that it obtains price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Management response - See corrective action plan provided by the Head of School.
Finding 2022-001
Criteria - Management is responsible for establishing and maintaining effective internal controls and for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition - The Data Collection Form for the year ended September 30, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Cause - The late filing resulted from a lack of internal controls over Federal financial reporting. Effect - The Data Collection Form for the year ended September 30, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Recommendation - We recommend that the School should implement controls to complete the timely submission of the Data Collection Form. Management response - See corrective action plan provided by the Head of School.
Finding 2022-002
Criteria - Management is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that the non-federal entity is managing the federal award in accordance with federal statues, regulations, and terms and conditions of the awards received. Condition - During the audit, we noted failure to document approval of purchases prior to disbursement of federal funds. Cause - The conditions mentioned above were due to failure by the School to comply with established internal control policies over the allowable use of federal funds. Effect - Without appropriate and effective internal controls over compliance, non-compliance could occur which the entity may not identify. Recommendation - We recommend that the School review its internal control policies to properly document approval of purchases prior to disbursement of federal funds. Management response - See corrective action plan provided by the Head of School.
Finding 2022-003
Criteria - Per 2 CFR section 200.320 of the Uniform Guidance, the School must obtain price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Condition - During the audit, we noted an instance in which a purchase exceeding $10,000 for which the School did not obtain price quotations from multiple sources. Cause - The conditions mentioned above were due to violation of the requirements of 2 CFR section 200.320 of the Uniform Guidance. Effect - The conditions mentioned above resulted in a violation of the requirements to comply with 2 CFR section 200.320 of the Uniform Guidance. Questioned costs - $61,821 Recommendation - We recommend that the School review its procurement policies to ensure that it obtains price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Management response - See corrective action plan provided by the Head of School.