FAC Explorer

Audit 326724

FY End
2024-06-30
Total Expended
$2.45M
Findings
8
Programs
8
Organization: Frontier International Academy Charter School (MI)
Year: 2024 Accepted: 2024-10-31
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504227 2024-001 Significant Deficiency - L
504228 2024-001 Significant Deficiency - L
504229 2024-001 Significant Deficiency - L
504230 2024-002 Significant Deficiency - B
1080669 2024-001 Significant Deficiency - L
1080670 2024-001 Significant Deficiency - L
1080671 2024-001 Significant Deficiency - L
1080672 2024-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $701,177 Yes 1
84.425 Education Stabilization Fund $635,026 - 0
84.010 Title I Grants to Local Educational Agencies $612,451 Yes 1
10.553 School Breakfast Program $220,884 Yes 1
84.365 English Language Acquisition State Grants $69,887 - 0
84.027 Special Education Grants to States $44,536 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $43,285 - 0
84.424 Student Support and Academic Enrichment Program $6,760 - 0

Contacts

Name Title Type
G4LEAXL3TJE9 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 Frontier International 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 financial statements. Such expenditures are recognize following the cost of principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as outlined in the Compliant Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business 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 Frontier International 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 financial statements. Such expenditures are recognize following the cost of principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as outlined in the Compliant Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business 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 Frontier International 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 financial statements. Such expenditures are recognize following the cost of principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as outlined in the Compliant Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business 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 was the following transfer of grants: Transferred From Amount Transferred To Title IV Part A $ 43,285 Title II, Part A The transfer was approved by the Michigan Department of Education.

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 six employees charged to the grant, five 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 - Five employees out of thirty six 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 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 2024-001
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 six employees charged to the grant, five 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 - Five employees out of thirty six 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 Corrective Action Plan - The Academy agrees with the recommendation and intends to implement the related procedures.