FAC Explorer

Audit 333598

FY End
2024-06-30
Total Expended
$1.31M
Findings
4
Programs
8
Organization: Step Academy (MN)
Year: 2024 Accepted: 2024-12-18
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
515746 2024-003 Significant Deficiency - L
515747 2024-003 Significant Deficiency - L
1092188 2024-003 Significant Deficiency - L
1092189 2024-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $475,523 Yes 1
84.010 Title I Grants to Local Educational Agencies $241,079 - 0
84.027 Special Education Grants to States $202,515 - 0
10.553 School Breakfast Program $153,992 Yes 1
84.425 Education Stabilization Fund $106,496 - 0
84.365 English Language Acquisition State Grants $39,897 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $7,994 - 0
10.649 Pandemic Ebt Administrative Costs $653 - 0

Contacts

Name Title Type
C13BSGHEXRN5 Paul Scanlon Auditee
6512896120 Justin Nilson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit-Organizations, or 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. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2024, the Charter School did not elect to use the 10 percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of STEP Academy, Charter School No. 4200 (the Charter School) under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirement of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of operations of the Charter School, it is not intended to and does not present the financial position, changes in net position or cash flows of the Charter School.
Title: Summary of Significant Accounting Policies for Expenditures Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit-Organizations, or 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. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2024, the Charter School did not elect to use the 10 percent de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1C to the Charter School’s financial statements. This activity is reported in the General fund and nonmajor governmental funds.
Title: Pass-through Entity Identifying Numbers Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit-Organizations, or 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. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2024, the Charter School did not elect to use the 10 percent de minimis indirect cost rate. Pass-through entity identifying numbers are presented where available.
Title: Subrecipients Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit-Organizations, or 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. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2024, the Charter School did not elect to use the 10 percent de minimis indirect cost rate. No federal expenditures presented in this schedule were provided to subrecipients.

Finding Details

Finding 2024-003
Condition: During our audit, we requested supporting documentation for the meal counts done by the Charter School and reported to MDE. We encountered the following: • The Charter School was unable to provide support for the numbers reported at the St. Paul school site for months tested. • The meals reported at the Burnsville school site did not agree to the numbers listed in the meal counts. • Meals appear to be over-reported in the month of November based on the support received. • The Average Daily Attendance reported at the Burnsville school site in November varied from other months tested. Criteria: Charter Schools are required to count meals at point-of-service at all school sites and claim them in CLiCS in the category of approval based on direct certification or a household application for educational benefits. The Charter School was unable provide supporting documentation to affirm that accurate meal counts at all school sites took place and in the proper manner as noted in the condition above. Cause: Unknown Recommendation: We recommend the Charter School devise a well-documented counting system to track meals daily and retain documentation for support. We also recommend a review of individual school site information for accuracy in future fiscal years. Management Response: STEP Academy staff members will ensure that meal counts are taking place daily, being documented accordingly, and being reported appropriately.
Finding 2024-003
Condition: During our audit, we requested supporting documentation for the meal counts done by the Charter School and reported to MDE. We encountered the following: • The Charter School was unable to provide support for the numbers reported at the St. Paul school site for months tested. • The meals reported at the Burnsville school site did not agree to the numbers listed in the meal counts. • Meals appear to be over-reported in the month of November based on the support received. • The Average Daily Attendance reported at the Burnsville school site in November varied from other months tested. Criteria: Charter Schools are required to count meals at point-of-service at all school sites and claim them in CLiCS in the category of approval based on direct certification or a household application for educational benefits. The Charter School was unable provide supporting documentation to affirm that accurate meal counts at all school sites took place and in the proper manner as noted in the condition above. Cause: Unknown Recommendation: We recommend the Charter School devise a well-documented counting system to track meals daily and retain documentation for support. We also recommend a review of individual school site information for accuracy in future fiscal years. Management Response: STEP Academy staff members will ensure that meal counts are taking place daily, being documented accordingly, and being reported appropriately.
Finding 2024-003
Condition: During our audit, we requested supporting documentation for the meal counts done by the Charter School and reported to MDE. We encountered the following: • The Charter School was unable to provide support for the numbers reported at the St. Paul school site for months tested. • The meals reported at the Burnsville school site did not agree to the numbers listed in the meal counts. • Meals appear to be over-reported in the month of November based on the support received. • The Average Daily Attendance reported at the Burnsville school site in November varied from other months tested. Criteria: Charter Schools are required to count meals at point-of-service at all school sites and claim them in CLiCS in the category of approval based on direct certification or a household application for educational benefits. The Charter School was unable provide supporting documentation to affirm that accurate meal counts at all school sites took place and in the proper manner as noted in the condition above. Cause: Unknown Recommendation: We recommend the Charter School devise a well-documented counting system to track meals daily and retain documentation for support. We also recommend a review of individual school site information for accuracy in future fiscal years. Management Response: STEP Academy staff members will ensure that meal counts are taking place daily, being documented accordingly, and being reported appropriately.
Finding 2024-003
Condition: During our audit, we requested supporting documentation for the meal counts done by the Charter School and reported to MDE. We encountered the following: • The Charter School was unable to provide support for the numbers reported at the St. Paul school site for months tested. • The meals reported at the Burnsville school site did not agree to the numbers listed in the meal counts. • Meals appear to be over-reported in the month of November based on the support received. • The Average Daily Attendance reported at the Burnsville school site in November varied from other months tested. Criteria: Charter Schools are required to count meals at point-of-service at all school sites and claim them in CLiCS in the category of approval based on direct certification or a household application for educational benefits. The Charter School was unable provide supporting documentation to affirm that accurate meal counts at all school sites took place and in the proper manner as noted in the condition above. Cause: Unknown Recommendation: We recommend the Charter School devise a well-documented counting system to track meals daily and retain documentation for support. We also recommend a review of individual school site information for accuracy in future fiscal years. Management Response: STEP Academy staff members will ensure that meal counts are taking place daily, being documented accordingly, and being reported appropriately.