Audit 320243

FY End
2022-09-30
Total Expended
$1.79M
Findings
10
Programs
12
Organization: Lead Academy (AL)
Year: 2022 Accepted: 2024-09-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
497454 2022-005 Material Weakness Yes A
497455 2022-005 Material Weakness Yes A
497456 2022-005 Material Weakness Yes A
497457 2022-006 Material Weakness - L
497458 2022-006 Material Weakness - L
1073896 2022-005 Material Weakness Yes A
1073897 2022-005 Material Weakness Yes A
1073898 2022-005 Material Weakness Yes A
1073899 2022-006 Material Weakness - L
1073900 2022-006 Material Weakness - L

Contacts

Name Title Type
VAX8E8271WN3 Erik Estill Auditee
3344513220 Lynne Bozeman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Board uses the simplified method to allocate costs as either direct or indirect to allocable individual federal awards and has not elected 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 Lead Academy (the “Academy”) 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 Academy, it is not intended to and does not present the financial position or changes in net position of the Academy.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Board uses the simplified method to allocate costs as either direct or indirect to allocable individual federal awards and has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Board uses the simplified method to allocate costs as either direct or indirect to allocable individual federal awards and has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Academy uses the simplified method to allocate costs as either direct or indirect to allocable individual federal awards and has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement resulting in meal counts submitted for reimbursement not adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 that a grantee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such controls should include preparing and maintaining documentation supporting the allowability of applicable meals claimed for reimbursement. This finding was reported in the prior year. Testing noted the following findings: Meals were served at unapproved sites. Meal counts from daily meal tallies differ from the total meals claimed for 5 of 7 months tested. There was inadequate oversight of activities and information provided by the contractor. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. The Academy responds that it has employed a supervisor responsible for overseeing the child nutrition program and the contract with the contractor was terminated during the 2022 fiscal year. Further, the Academy began providing onsite meal service beginning with the 2022-23 school year using a new provider.
Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement resulting in meal counts submitted for reimbursement not adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 that a grantee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such controls should include preparing and maintaining documentation supporting the allowability of applicable meals claimed for reimbursement. This finding was reported in the prior year. Testing noted the following findings: Meals were served at unapproved sites. Meal counts from daily meal tallies differ from the total meals claimed for 5 of 7 months tested. There was inadequate oversight of activities and information provided by the contractor. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. The Academy responds that it has employed a supervisor responsible for overseeing the child nutrition program and the contract with the contractor was terminated during the 2022 fiscal year. Further, the Academy began providing onsite meal service beginning with the 2022-23 school year using a new provider.
Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement resulting in meal counts submitted for reimbursement not adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 that a grantee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such controls should include preparing and maintaining documentation supporting the allowability of applicable meals claimed for reimbursement. This finding was reported in the prior year. Testing noted the following findings: Meals were served at unapproved sites. Meal counts from daily meal tallies differ from the total meals claimed for 5 of 7 months tested. There was inadequate oversight of activities and information provided by the contractor. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. The Academy responds that it has employed a supervisor responsible for overseeing the child nutrition program and the contract with the contractor was terminated during the 2022 fiscal year. Further, the Academy began providing onsite meal service beginning with the 2022-23 school year using a new provider.
Sufficient controls were not in place for the current fiscal year to ensure that requests for reimbursement were adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 and 200.302 that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retained for three years from the final expenditure report. Requests for reimbursement and their supporting information could not be located for three of six reimbursement requests. We recommend that a standardized file and documentation system be implemented for all grant reimbursement requests containing the reimbursement request with evidence of review and authorization and including the supporting expenditure reports. The Academy responds that it has contracted with an accounting and administrative contractor who has implemented a recordkeeping system for grant reimbursement requests and related supporting documentation
Sufficient controls were not in place for the current fiscal year to ensure that requests for reimbursement were adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 and 200.302 that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retained for three years from the final expenditure report. Requests for reimbursement and their supporting information could not be located for three of six reimbursement requests. We recommend that a standardized file and documentation system be implemented for all grant reimbursement requests containing the reimbursement request with evidence of review and authorization and including the supporting expenditure reports. The Academy responds that it has contracted with an accounting and administrative contractor who has implemented a recordkeeping system for grant reimbursement requests and related supporting documentation
Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement resulting in meal counts submitted for reimbursement not adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 that a grantee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such controls should include preparing and maintaining documentation supporting the allowability of applicable meals claimed for reimbursement. This finding was reported in the prior year. Testing noted the following findings: Meals were served at unapproved sites. Meal counts from daily meal tallies differ from the total meals claimed for 5 of 7 months tested. There was inadequate oversight of activities and information provided by the contractor. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. The Academy responds that it has employed a supervisor responsible for overseeing the child nutrition program and the contract with the contractor was terminated during the 2022 fiscal year. Further, the Academy began providing onsite meal service beginning with the 2022-23 school year using a new provider.
Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement resulting in meal counts submitted for reimbursement not adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 that a grantee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such controls should include preparing and maintaining documentation supporting the allowability of applicable meals claimed for reimbursement. This finding was reported in the prior year. Testing noted the following findings: Meals were served at unapproved sites. Meal counts from daily meal tallies differ from the total meals claimed for 5 of 7 months tested. There was inadequate oversight of activities and information provided by the contractor. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. The Academy responds that it has employed a supervisor responsible for overseeing the child nutrition program and the contract with the contractor was terminated during the 2022 fiscal year. Further, the Academy began providing onsite meal service beginning with the 2022-23 school year using a new provider.
Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement resulting in meal counts submitted for reimbursement not adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 that a grantee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such controls should include preparing and maintaining documentation supporting the allowability of applicable meals claimed for reimbursement. This finding was reported in the prior year. Testing noted the following findings: Meals were served at unapproved sites. Meal counts from daily meal tallies differ from the total meals claimed for 5 of 7 months tested. There was inadequate oversight of activities and information provided by the contractor. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. The Academy responds that it has employed a supervisor responsible for overseeing the child nutrition program and the contract with the contractor was terminated during the 2022 fiscal year. Further, the Academy began providing onsite meal service beginning with the 2022-23 school year using a new provider.
Sufficient controls were not in place for the current fiscal year to ensure that requests for reimbursement were adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 and 200.302 that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retained for three years from the final expenditure report. Requests for reimbursement and their supporting information could not be located for three of six reimbursement requests. We recommend that a standardized file and documentation system be implemented for all grant reimbursement requests containing the reimbursement request with evidence of review and authorization and including the supporting expenditure reports. The Academy responds that it has contracted with an accounting and administrative contractor who has implemented a recordkeeping system for grant reimbursement requests and related supporting documentation
Sufficient controls were not in place for the current fiscal year to ensure that requests for reimbursement were adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 and 200.302 that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retained for three years from the final expenditure report. Requests for reimbursement and their supporting information could not be located for three of six reimbursement requests. We recommend that a standardized file and documentation system be implemented for all grant reimbursement requests containing the reimbursement request with evidence of review and authorization and including the supporting expenditure reports. The Academy responds that it has contracted with an accounting and administrative contractor who has implemented a recordkeeping system for grant reimbursement requests and related supporting documentation