FAC Explorer

Audit 326723

FY End
2024-06-30
Total Expended
$2.46M
Findings
8
Programs
9
Organization: Riverside Academy Charter School (MI)
Year: 2024 Accepted: 2024-10-31
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504223 2024-001 Significant Deficiency - L
504224 2024-001 Significant Deficiency - L
504225 2024-001 Significant Deficiency - L
504226 2024-002 Significant Deficiency - B
1080665 2024-001 Significant Deficiency - L
1080666 2024-001 Significant Deficiency - L
1080667 2024-001 Significant Deficiency - L
1080668 2024-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $905,020 - 0
84.010 Title I Grants to Local Educational Agencies $640,640 Yes 1
10.555 National School Lunch Program - Cash Assistance $459,317 Yes 1
10.553 School Breakfast Program - Cash Assistance $99,863 Yes 1
84.027 Special Education Grants to States $84,384 - 0
84.365 English Language Acquisition State Grants $73,606 - 0
10.555 National School Lunch Program - Commodities $55,900 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $44,621 - 0
84.424 Student Support and Academic Enrichment Program $18,399 - 0

Contacts

Name Title Type
NJZ7LRU8YAS3 Molly Brown Auditee
7343699500 Jeff Higgins Auditor
No contacts on file

Notes to SEFA

Title: Grant Auditor Report Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Riverside Academy Charter School (the “Academy”) under programs of the federal government for the year ended June 30, 2024. The information in the 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 (the “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. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements. 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 are not allowable or are limited as to reimbursement, as outlined in the Compliance Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Academy has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Management has utilized the Michigan Department of Education NexSys Grant Auditor Report (GAR) in preparing the schedule of expenditures of federal awards. Differences, if any, between the GAR and the schedule of expenditures of federal awards relate to the timing of payments and the fiscal year to which the payments relate.
Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Riverside Academy Charter School (the “Academy”) under programs of the federal government for the year ended June 30, 2024. The information in the 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 (the “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. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements. 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 are not allowable or are limited as to reimbursement, as outlined in the Compliance Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Academy has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance and is reported on the schedule of expenditures of federal awards.
Title: Adjustments and Transfers Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Riverside Academy Charter School (the “Academy”) under programs of the federal government for the year ended June 30, 2024. The information in the 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 (the “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. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements. 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 are not allowable or are limited as to reimbursement, as outlined in the Compliance Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Academy has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. During the year ended June 30, 2024, there were the following transfers of grants: Transferred From Amount Transferred To Title IV, Part A $44,621 Title II, Part A The transfers were approved by the Michigan Department of Education. Other adjustments of $1,573 in the National School Lunch Program, ALN 10.533, resulted from grant award adjustments.

Finding Details

Finding 2024-001
Assistance Listing, Federal Agency, and Program Name 10.553 and 10.555, U.S. Department of Agriculture, Child Nutrition Cluster Federal Award Identification Number and Year 241960 and 241970 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Questioned Costs None Context Monthly reimbursement claim requests do not have evidence of a second review. However, monthly claim requests are supported by underlying detail from the point of sale system. Cause and Effect The absence of a secondary review comparing meal data from the Academy's meal tracking point of sale system to the inputs into the MiND system resulted in the Academy being reimbursed for inaccurate amounts. Recommendation The Academy should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the Academy’s internal meal claims data report. Views of Responsible Officials and Corrective Action Plan The Academy agrees with the recommendation and intends to implement the related procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name 10.553 and 10.555, U.S. Department of Agriculture, Child Nutrition Cluster Federal Award Identification Number and Year 241960 and 241970 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Questioned Costs None Context Monthly reimbursement claim requests do not have evidence of a second review. However, monthly claim requests are supported by underlying detail from the point of sale system. Cause and Effect The absence of a secondary review comparing meal data from the Academy's meal tracking point of sale system to the inputs into the MiND system resulted in the Academy being reimbursed for inaccurate amounts. Recommendation The Academy should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the Academy’s internal meal claims data report. Views of Responsible Officials and Corrective Action Plan The Academy agrees with the recommendation and intends to implement the related procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name 10.553 and 10.555, U.S. Department of Agriculture, Child Nutrition Cluster Federal Award Identification Number and Year 241960 and 241970 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Questioned Costs None Context Monthly reimbursement claim requests do not have evidence of a second review. However, monthly claim requests are supported by underlying detail from the point of sale system. Cause and Effect The absence of a secondary review comparing meal data from the Academy's meal tracking point of sale system to the inputs into the MiND system resulted in the Academy being reimbursed for inaccurate amounts. Recommendation The Academy should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the Academy’s internal meal claims data report. Views of Responsible Officials and Corrective Action Plan The Academy agrees with the recommendation and intends to implement the related procedures.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name 84.010, U.S. Department of Education, Title I, Part A Federal Award Identification Number and Year 241530 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy is required to maintain documentation that salaries and wages charged to a federal grant are supported with documentation that the time and effort of the employee was made under the cost objectives of the grant. This takes the form of either semiannual certifications for employees that work solely on the cost objective of a single federal grant or time and effort distribution records if the employee works on more than one cost objective. Condition Of the thirty three employees charged to the grant, eleven employees did not have semiannual certifications available. The Academy was able to provide alternative support for the allowability of these costs through review of the activities performed as compared to activities included in the approved grant budget. Questioned Costs None Context Eleven employees out of thirty three employees charged to the grant did not have a semiannual certification. The Academy was able to provide alternative support for the allowability of the costs. Cause and Effect Not maintaining and reviewing time and effort documentation could result in costs being charged to a grant that were not allowable. Recommendation We recommend that the semiannual certification forms are filled out by the individuals who work on a single federally funded cost objective or personnel activity reports by employees that work on multiple cost objectives, and that these forms are reviewed the grant coordinator and reconciled to the underlying accounting records to ensure proper compliance with grant terms and Academy timekeeping policies. Views of Responsible Officials and Planned Corrective Actions The Academy agrees with the recommendation and intends to implement the related procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name 10.553 and 10.555, U.S. Department of Agriculture, Child Nutrition Cluster Federal Award Identification Number and Year 241960 and 241970 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Questioned Costs None Context Monthly reimbursement claim requests do not have evidence of a second review. However, monthly claim requests are supported by underlying detail from the point of sale system. Cause and Effect The absence of a secondary review comparing meal data from the Academy's meal tracking point of sale system to the inputs into the MiND system resulted in the Academy being reimbursed for inaccurate amounts. Recommendation The Academy should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the Academy’s internal meal claims data report. Views of Responsible Officials and Corrective Action Plan The Academy agrees with the recommendation and intends to implement the related procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name 10.553 and 10.555, U.S. Department of Agriculture, Child Nutrition Cluster Federal Award Identification Number and Year 241960 and 241970 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Questioned Costs None Context Monthly reimbursement claim requests do not have evidence of a second review. However, monthly claim requests are supported by underlying detail from the point of sale system. Cause and Effect The absence of a secondary review comparing meal data from the Academy's meal tracking point of sale system to the inputs into the MiND system resulted in the Academy being reimbursed for inaccurate amounts. Recommendation The Academy should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the Academy’s internal meal claims data report. Views of Responsible Officials and Corrective Action Plan The Academy agrees with the recommendation and intends to implement the related procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name 10.553 and 10.555, U.S. Department of Agriculture, Child Nutrition Cluster Federal Award Identification Number and Year 241960 and 241970 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Questioned Costs None Context Monthly reimbursement claim requests do not have evidence of a second review. However, monthly claim requests are supported by underlying detail from the point of sale system. Cause and Effect The absence of a secondary review comparing meal data from the Academy's meal tracking point of sale system to the inputs into the MiND system resulted in the Academy being reimbursed for inaccurate amounts. Recommendation The Academy should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the Academy’s internal meal claims data report. Views of Responsible Officials and Corrective Action Plan The Academy agrees with the recommendation and intends to implement the related procedures.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name 84.010, U.S. Department of Education, Title I, Part A Federal Award Identification Number and Year 241530 Pass through Entity Michigan Department of Education Finding Type Significant deficiency Repeat Finding No Criteria The Academy is required to maintain documentation that salaries and wages charged to a federal grant are supported with documentation that the time and effort of the employee was made under the cost objectives of the grant. This takes the form of either semiannual certifications for employees that work solely on the cost objective of a single federal grant or time and effort distribution records if the employee works on more than one cost objective. Condition Of the thirty three employees charged to the grant, eleven employees did not have semiannual certifications available. The Academy was able to provide alternative support for the allowability of these costs through review of the activities performed as compared to activities included in the approved grant budget. Questioned Costs None Context Eleven employees out of thirty three employees charged to the grant did not have a semiannual certification. The Academy was able to provide alternative support for the allowability of the costs. Cause and Effect Not maintaining and reviewing time and effort documentation could result in costs being charged to a grant that were not allowable. Recommendation We recommend that the semiannual certification forms are filled out by the individuals who work on a single federally funded cost objective or personnel activity reports by employees that work on multiple cost objectives, and that these forms are reviewed the grant coordinator and reconciled to the underlying accounting records to ensure proper compliance with grant terms and Academy timekeeping policies. Views of Responsible Officials and Planned Corrective Actions The Academy agrees with the recommendation and intends to implement the related procedures.