FAC Explorer

Audit 334382

FY End
2023-06-30
Total Expended
$3.63M
Findings
12
Programs
13
Organization: Academy of America (MI)
Year: 2023 Accepted: 2024-12-20
Auditor: Uhy LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516472 2023-009 Material Weakness Yes L
516473 2023-010 Material Weakness - P
516474 2023-009 Material Weakness Yes L
516475 2023-010 Material Weakness - P
516476 2023-009 Material Weakness Yes L
516477 2023-010 Material Weakness - P
1092914 2023-009 Material Weakness Yes L
1092915 2023-010 Material Weakness - P
1092916 2023-009 Material Weakness Yes L
1092917 2023-010 Material Weakness - P
1092918 2023-009 Material Weakness Yes L
1092919 2023-010 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.425D Education Stabilization Fund $1.17M Yes 2
84.425U Education Stabilization Fund $757,722 Yes 2
84.010A Title I Grants to Local Educational Agencies $333,858 - 0
84.287C Twenty-First Century Community Learning Centers $209,500 - 0
10.553 School Breakfast Program $144,034 - 0
84.027A Special Education Grants to States $120,841 - 0
10.555 National School Lunch Program $42,265 - 0
84.424A Student Support and Academic Enrichment Program $31,101 - 0
84.367A Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $20,072 - 0
84.027X Special Education Grants to States $16,900 - 0
84.173A Special Education Preschool Grants $5,833 - 0
84.365A English Language Acquisition State Grants $5,468 - 0
10.649 Pandemic Ebt Administrative Costs $1,256 - 0

Contacts

Name Title Type
M7MLCJBNJ4J7 Claudia Chatman Auditee
2485697787 Marlene Beach Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Academy of America and Subsidiaries (the “Organization”) under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated statement of financial position, consolidated statements of activities or cash flows of the Organization or accompanying separate statements of functional expenses of Academy of America for the year ended June 30, 2023 and its subsidiaries, Bexar County Academy and Academy of Dallas for the year ended August 31, 2023.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: SUB-RECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization did not provide federal awards to sub-recipients for the year ended June 30, 2023.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NONCASH ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The value of noncash assistance received was determined in accordance with the provisions of the Uniform Guidance.
Title: GRANT AUDITOR REPORT Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Management has utilized the Texas Education Agency Notice of Grant Award in preparing the Schedule.
Title: SUBSEQUENT EVENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting as the consolidated financial statements. Such expenditures are recognized following the cost principles contained 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. All subsequent events relative to the major programs were evaluated through December 10, 2024, the date the accompanying reports were available to be issued.

Finding Details

Finding 2023-009
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Repeat Finding Yes Criteria – Per 2 CFR § 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for Reporting, it was noted that 3 out of 3 reports selected for testing did not have evidence of review and approval. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management did not follow their internal controls. Effect – Certain reports did not have evidence of review and approval. Recommendation – We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.
Finding 2023-010
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended August 31, 2023. Cause – Bexar County Academy’s (the “Academy”) books and records for the 2023 fiscal year were not reconciled and closed in a timely manner. Effect – The data collection form was not submitted within the required time as required by 2 CFR 200.512. Recommendation – We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – The Academies will develop a reliable system that will lead to the timely processing of the financial records by reviewing existing procedures to identify bottlenecks and areas of improvement. Feedback will be gathered from team members involved in the financial record keeping process so that standard procedures can be development and implemented. Furthermore, opportunities to automate processes and use software to assist with data entry, record reconciliation, and reporting can be used. This will significantly decrease manual workload and improve accuracy and timeliness.
Finding 2023-009
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Repeat Finding Yes Criteria – Per 2 CFR § 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for Reporting, it was noted that 3 out of 3 reports selected for testing did not have evidence of review and approval. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management did not follow their internal controls. Effect – Certain reports did not have evidence of review and approval. Recommendation – We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.
Finding 2023-010
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended August 31, 2023. Cause – Bexar County Academy’s (the “Academy”) books and records for the 2023 fiscal year were not reconciled and closed in a timely manner. Effect – The data collection form was not submitted within the required time as required by 2 CFR 200.512. Recommendation – We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – The Academies will develop a reliable system that will lead to the timely processing of the financial records by reviewing existing procedures to identify bottlenecks and areas of improvement. Feedback will be gathered from team members involved in the financial record keeping process so that standard procedures can be development and implemented. Furthermore, opportunities to automate processes and use software to assist with data entry, record reconciliation, and reporting can be used. This will significantly decrease manual workload and improve accuracy and timeliness.
Finding 2023-009
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Repeat Finding Yes Criteria – Per 2 CFR § 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for Reporting, it was noted that 3 out of 3 reports selected for testing did not have evidence of review and approval. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management did not follow their internal controls. Effect – Certain reports did not have evidence of review and approval. Recommendation – We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.
Finding 2023-010
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended August 31, 2023. Cause – Bexar County Academy’s (the “Academy”) books and records for the 2023 fiscal year were not reconciled and closed in a timely manner. Effect – The data collection form was not submitted within the required time as required by 2 CFR 200.512. Recommendation – We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – The Academies will develop a reliable system that will lead to the timely processing of the financial records by reviewing existing procedures to identify bottlenecks and areas of improvement. Feedback will be gathered from team members involved in the financial record keeping process so that standard procedures can be development and implemented. Furthermore, opportunities to automate processes and use software to assist with data entry, record reconciliation, and reporting can be used. This will significantly decrease manual workload and improve accuracy and timeliness.
Finding 2023-009
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Repeat Finding Yes Criteria – Per 2 CFR § 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for Reporting, it was noted that 3 out of 3 reports selected for testing did not have evidence of review and approval. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management did not follow their internal controls. Effect – Certain reports did not have evidence of review and approval. Recommendation – We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.
Finding 2023-010
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended August 31, 2023. Cause – Bexar County Academy’s (the “Academy”) books and records for the 2023 fiscal year were not reconciled and closed in a timely manner. Effect – The data collection form was not submitted within the required time as required by 2 CFR 200.512. Recommendation – We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – The Academies will develop a reliable system that will lead to the timely processing of the financial records by reviewing existing procedures to identify bottlenecks and areas of improvement. Feedback will be gathered from team members involved in the financial record keeping process so that standard procedures can be development and implemented. Furthermore, opportunities to automate processes and use software to assist with data entry, record reconciliation, and reporting can be used. This will significantly decrease manual workload and improve accuracy and timeliness.
Finding 2023-009
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Repeat Finding Yes Criteria – Per 2 CFR § 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for Reporting, it was noted that 3 out of 3 reports selected for testing did not have evidence of review and approval. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management did not follow their internal controls. Effect – Certain reports did not have evidence of review and approval. Recommendation – We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.
Finding 2023-010
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended August 31, 2023. Cause – Bexar County Academy’s (the “Academy”) books and records for the 2023 fiscal year were not reconciled and closed in a timely manner. Effect – The data collection form was not submitted within the required time as required by 2 CFR 200.512. Recommendation – We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – The Academies will develop a reliable system that will lead to the timely processing of the financial records by reviewing existing procedures to identify bottlenecks and areas of improvement. Feedback will be gathered from team members involved in the financial record keeping process so that standard procedures can be development and implemented. Furthermore, opportunities to automate processes and use software to assist with data entry, record reconciliation, and reporting can be used. This will significantly decrease manual workload and improve accuracy and timeliness.
Finding 2023-009
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Repeat Finding Yes Criteria – Per 2 CFR § 200.303, The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for Reporting, it was noted that 3 out of 3 reports selected for testing did not have evidence of review and approval. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management did not follow their internal controls. Effect – Certain reports did not have evidence of review and approval. Recommendation – We recommend that all reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan – Management will monitor the review and approval procedures for reporting to ensure that reports are signed off to indicated and document that review and approval has been made.
Finding 2023-010
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended August 31, 2023. Cause – Bexar County Academy’s (the “Academy”) books and records for the 2023 fiscal year were not reconciled and closed in a timely manner. Effect – The data collection form was not submitted within the required time as required by 2 CFR 200.512. Recommendation – We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – The Academies will develop a reliable system that will lead to the timely processing of the financial records by reviewing existing procedures to identify bottlenecks and areas of improvement. Feedback will be gathered from team members involved in the financial record keeping process so that standard procedures can be development and implemented. Furthermore, opportunities to automate processes and use software to assist with data entry, record reconciliation, and reporting can be used. This will significantly decrease manual workload and improve accuracy and timeliness.