Audit 325032

FY End
2023-09-30
Total Expended
$1.12M
Findings
8
Programs
11
Organization: Breakthrough Charter School (AL)
Year: 2023 Accepted: 2024-10-17

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
503059 2023-001 Significant Deficiency Yes P
503060 2023-002 - - N
503061 2023-003 Significant Deficiency Yes B
503062 2023-004 - Yes I
1079501 2023-001 Significant Deficiency Yes P
1079502 2023-002 - - N
1079503 2023-003 Significant Deficiency Yes B
1079504 2023-004 - Yes I

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $341,946 Yes 3
10.555 National School Lunch Program $129,989 - 0
84.010 Title I Grants to Local Educational Agencies $110,623 - 0
84.425 Education Stabilization Fund $78,680 Yes 0
10.553 School Breakfast Program $78,629 - 0
84.027 Special Education_grants to States $35,093 - 0
32.009 Emergency Connectivity Fund Program $32,000 - 0
84.367 Improving Teacher Quality State Grants $23,126 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.173 Special Education_preschool Grants $380 - 0
96.001 Social Security_disability Insurance $180 - 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 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 Breakthrough Charter School (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 position, or cash flows of the School.

Finding Details

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. (This is a repeat of prior year finding 2022-01). 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 Head of School.
Compliance Requirement - Special Tests and Provisions Criteria - Per 34 CFR section 222.196(a) of the Uniform Guidance, for construction contracts in excess of $2,000 and financed by federal assistance funds, the School must comply with the prevailing wage standards in the School's locality as established by the Secretary of Labor in accordance with the Davis-Bacon Act. Condition - During the audit, we noted instances in which the School was unable to provide evidence of compliance with 34 CFR section 222.196(a) of the Uniform Guidance. Cause - The conditions mentioned above were due to violation of the requirements of 34 CFR section 222.196(a) of the Uniform Guidance. Effect - The conditions mentioned above resulted in a violation of the requirements to comply with 34 CFR section 222.196(a) of the Uniform Guidance. Questioned costs - $8,826. Recommendation - We recommend that the School should implement policies and procedures to ensure that it complies with 34 CFR section 222.196(a) of the Uniform Guidance. Management response - See corrective action plan provided by the Head of School.
Criteria - Management is responsible for establishing and maintaining effective internal controls over federal awards to provide reasonable assurance that the non-federal entity is managing the federal award in accordance with federal statutes, regulations, and terms and conditions of the awards received. (This is a repeat of prior year finding 2022-02). Condition - During the audit, we noted failure to document approval by the Board of Directors for purchases greater than $15,000 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.
Compliance Requirement - Procurement and Suspension and Debarment 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. (This is a repeat of prior year finding 2022-03). 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 - $84,978. Recommendation - We recommend that the School review its procurement policies to ensure that it obtains price 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.
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. (This is a repeat of prior year finding 2022-01). 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 Head of School.
Compliance Requirement - Special Tests and Provisions Criteria - Per 34 CFR section 222.196(a) of the Uniform Guidance, for construction contracts in excess of $2,000 and financed by federal assistance funds, the School must comply with the prevailing wage standards in the School's locality as established by the Secretary of Labor in accordance with the Davis-Bacon Act. Condition - During the audit, we noted instances in which the School was unable to provide evidence of compliance with 34 CFR section 222.196(a) of the Uniform Guidance. Cause - The conditions mentioned above were due to violation of the requirements of 34 CFR section 222.196(a) of the Uniform Guidance. Effect - The conditions mentioned above resulted in a violation of the requirements to comply with 34 CFR section 222.196(a) of the Uniform Guidance. Questioned costs - $8,826. Recommendation - We recommend that the School should implement policies and procedures to ensure that it complies with 34 CFR section 222.196(a) of the Uniform Guidance. Management response - See corrective action plan provided by the Head of School.
Criteria - Management is responsible for establishing and maintaining effective internal controls over federal awards to provide reasonable assurance that the non-federal entity is managing the federal award in accordance with federal statutes, regulations, and terms and conditions of the awards received. (This is a repeat of prior year finding 2022-02). Condition - During the audit, we noted failure to document approval by the Board of Directors for purchases greater than $15,000 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.
Compliance Requirement - Procurement and Suspension and Debarment 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. (This is a repeat of prior year finding 2022-03). 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 - $84,978. Recommendation - We recommend that the School review its procurement policies to ensure that it obtains price 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.