Audit 331756

FY End
2024-06-30
Total Expended
$2.84M
Findings
16
Programs
7
Year: 2024 Accepted: 2024-12-10

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
513795 2024-003 Significant Deficiency - B
513796 2024-003 Significant Deficiency - B
513797 2024-004 Significant Deficiency - L
513798 2024-004 Significant Deficiency - L
513799 2024-004 Significant Deficiency - L
513800 2024-004 Significant Deficiency - L
513801 2024-004 Significant Deficiency - L
513802 2024-004 Significant Deficiency - L
1090237 2024-003 Significant Deficiency - B
1090238 2024-003 Significant Deficiency - B
1090239 2024-004 Significant Deficiency - L
1090240 2024-004 Significant Deficiency - L
1090241 2024-004 Significant Deficiency - L
1090242 2024-004 Significant Deficiency - L
1090243 2024-004 Significant Deficiency - L
1090244 2024-004 Significant Deficiency - L

Contacts

Name Title Type
E96VGANM1FR3 Ingmar Berg Auditee
7815919676 Drew Madsen Auditor
No contacts on file

Notes to SEFA

Title: 2. Non‐Cash Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of School of Excellence in Education dba Legacy Traditional Schools ‐ Texas (School). The information in this Schedule is presented in accordance with the requirements of Title 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures  are  recognized  following  the  cost  principles  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 School has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Food commodities are recognized as federal expenditures when distributed. Distributed food is reported in the Schedule under the National School Lunch Program and is valued based on amounts reported to the School by the Texas Department of Agriculture. These amounts are considered to be non‐cash assistance to the School. The School received non‐cash awards in the form of food commodities totaling $31,803 for the year ended June 30, 2024.

Finding Details

Finding 2024‐003: Allowable costs – Significant deficiency in internal control over compliance and compliance finding. Title I Grants to Local Educational Agencies ALN 84.010 Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 3 out of 17 payroll transactions tested, the amount charged to the grant did not agree to actual time and effort. Cause: Funding percentages in the accounting system did not match the actual time and effort per the semi‐annual time and effort certification logs. Effect: The School's reporting of grant time and effort was not fully documented, in accordance with internal control over compliance procedures. The cumulative effect of the exceptions noted during tested resulted in the grants being undercharged by the School. Questioned Costs: None Recommendation:  Management  should  ensure  amount  charged  to  the  grants  agree  to  the  approved percentage per the semi‐annual time and effort certification logs before the request for reimbursement is submitted.
Finding 2024‐003: Allowable costs – Significant deficiency in internal control over compliance and compliance finding. Title I Grants to Local Educational Agencies ALN 84.010 Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 3 out of 17 payroll transactions tested, the amount charged to the grant did not agree to actual time and effort. Cause: Funding percentages in the accounting system did not match the actual time and effort per the semi‐annual time and effort certification logs. Effect: The School's reporting of grant time and effort was not fully documented, in accordance with internal control over compliance procedures. The cumulative effect of the exceptions noted during tested resulted in the grants being undercharged by the School. Questioned Costs: None Recommendation:  Management  should  ensure  amount  charged  to  the  grants  agree  to  the  approved percentage per the semi‐annual time and effort certification logs before the request for reimbursement is submitted.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐003: Allowable costs – Significant deficiency in internal control over compliance and compliance finding. Title I Grants to Local Educational Agencies ALN 84.010 Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 3 out of 17 payroll transactions tested, the amount charged to the grant did not agree to actual time and effort. Cause: Funding percentages in the accounting system did not match the actual time and effort per the semi‐annual time and effort certification logs. Effect: The School's reporting of grant time and effort was not fully documented, in accordance with internal control over compliance procedures. The cumulative effect of the exceptions noted during tested resulted in the grants being undercharged by the School. Questioned Costs: None Recommendation:  Management  should  ensure  amount  charged  to  the  grants  agree  to  the  approved percentage per the semi‐annual time and effort certification logs before the request for reimbursement is submitted.
Finding 2024‐003: Allowable costs – Significant deficiency in internal control over compliance and compliance finding. Title I Grants to Local Educational Agencies ALN 84.010 Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 3 out of 17 payroll transactions tested, the amount charged to the grant did not agree to actual time and effort. Cause: Funding percentages in the accounting system did not match the actual time and effort per the semi‐annual time and effort certification logs. Effect: The School's reporting of grant time and effort was not fully documented, in accordance with internal control over compliance procedures. The cumulative effect of the exceptions noted during tested resulted in the grants being undercharged by the School. Questioned Costs: None Recommendation:  Management  should  ensure  amount  charged  to  the  grants  agree  to  the  approved percentage per the semi‐annual time and effort certification logs before the request for reimbursement is submitted.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.
Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.