FAC Explorer

Audit 315376

FY End
2023-09-30
Total Expended
$807,900
Findings
6
Programs
8
Organization: Alabama Aerospace and Aviation Schools Inc. (AL)
Year: 2023 Accepted: 2024-07-17
Auditor: Horton Lee Burnett Peacock Cleveland & Grainger PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478707 2023-001 Material Weakness - P
478708 2023-002 Material Weakness - A
478709 2023-003 - - I
1055149 2023-001 Material Weakness - P
1055150 2023-002 Material Weakness - A
1055151 2023-003 - - I

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $524,771 Yes 3
84.287 Twenty-First Century Community Learning Centers $180,000 - 0
84.027 Special Education_grants to States $49,679 - 0
10.555 National School Lunch Program $20,811 - 0
84.010 Title I Grants to Local Educational Agencies $20,353 - 0
10.553 School Breakfast Program $4,821 - 0
84.424 Student Support and Academic Enrichment Program $4,304 - 0
84.367 Improving Teacher Quality State Grants $3,161 - 0

Contacts

Name Title Type
D4WHLEEA8SJ5 Mauri Robinson Auditee
2055380702 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, as well as other applicable provisions of contracts and grant agreements, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as applicable. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the ten percent de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Alabama Aerospace and Aviation Schools Inc. (the “School”) under programs of the federal government for the year ended September 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, changes in net assets, or cash flows of the School.

Finding Details

Finding 2023-001
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, 2023 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, 2023 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 CEO.
Finding 2023-002
Compliance Requirement - Allowable Costs/Cost Principles 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 CEO.
Finding 2023-003
Compliance Requirement - Procurement 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 instances in which the School did not obtain price quotations from multiple sources for purchases exceeding $10,000. 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 - $208,977 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 CEO.
Finding 2023-001
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, 2023 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, 2023 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 CEO.
Finding 2023-002
Compliance Requirement - Allowable Costs/Cost Principles 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 CEO.
Finding 2023-003
Compliance Requirement - Procurement 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 instances in which the School did not obtain price quotations from multiple sources for purchases exceeding $10,000. 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 - $208,977 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 CEO.