FAC Explorer

Audit 335212

FY End
2024-06-30
Total Expended
$986,855
Findings
10
Programs
9
Organization: Believe Schools, Inc. and Affiliate (IN)
Year: 2024 Accepted: 2024-12-31
Auditor: Donovan PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517228 2024-001 Significant Deficiency - P
517229 2024-001 Significant Deficiency - P
517230 2024-002 Significant Deficiency - I
517231 2024-002 Significant Deficiency - I
517232 2024-002 Significant Deficiency - I
1093670 2024-001 Significant Deficiency - P
1093671 2024-001 Significant Deficiency - P
1093672 2024-002 Significant Deficiency - I
1093673 2024-002 Significant Deficiency - I
1093674 2024-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $165,731 Yes 1
84.282 Charter Schools $137,399 - 0
84.425 Education Stabilization Fund $77,788 Yes 1
84.010 Title I Grants to Local Educational Agencies $70,496 - 0
10.553 School Breakfast Program $33,732 Yes 1
84.424 Student Support and Academic Enrichment Program $11,750 - 0
84.367 Improving Teacher Quality State Grants $3,000 - 0
84.027 Special Education_grants to States $1,418 - 0
84.365 English Language Acquisition State Grants $1,295 - 0

Contacts

Name Title Type
U6S1GBUAX5B9 Teagan Vonderheit Auditee
3172961954 Jason Schultz Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the consolidated schedule are reported on the accrual basis of accounting. 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 School elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying consolidated schedule of expenditures of federal awards includes the federal award activity of Believe Schools, Inc. and Affiliate (the School) under programs of the federal government for the year ended June 30, 2024. The information in this consolidated 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 (Uniform Guidance). Because the consolidated schedule presents only a selected portion of the consolidated operations of the School, it is not intended to and does not present the financial position, results of operations, functional expenses, or cash flows of the School.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the consolidated schedule are reported on the accrual basis of accounting. 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 School elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the consolidated schedule are reported on the accrual basis of accounting. 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: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported on the consolidated schedule are reported on the accrual basis of accounting. 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 School elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The School elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
FINDING 2024-001 DOCUMENT RETENTION SIGNIFICANT DEFICIENCY Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553 & 10.555 Criteria Per 7 CFR 200.334, “Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.” Condition Two claims for meal reimbursement were selected for testing. The School was unable to provide records of meals served. The School qualified for the Community Eligibility Provision program and all students receive free meals. Meals claimed were below the maximum that could have been claimed had all students obtained school meals each day of the periods under review. No determination of questioned costs could be made. Cause The School did not maintain documentation for each individual claim. Effect Reconciliation of meals served data to individual claims was not possible. Recommendation We recommend the School develop internal controls requiring the maintenance of documentation of meals served for the individual claims submitted for the program. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-001
FINDING 2024-001 DOCUMENT RETENTION SIGNIFICANT DEFICIENCY Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553 & 10.555 Criteria Per 7 CFR 200.334, “Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.” Condition Two claims for meal reimbursement were selected for testing. The School was unable to provide records of meals served. The School qualified for the Community Eligibility Provision program and all students receive free meals. Meals claimed were below the maximum that could have been claimed had all students obtained school meals each day of the periods under review. No determination of questioned costs could be made. Cause The School did not maintain documentation for each individual claim. Effect Reconciliation of meals served data to individual claims was not possible. Recommendation We recommend the School develop internal controls requiring the maintenance of documentation of meals served for the individual claims submitted for the program. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-002
FINDING 2024-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425 Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition The School entered into an agreement with a contractor for building renovations paid with funds from the Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the provisions of the Davis-Bacon Act. Cause The School did not maintain the contract for the renovation services. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and retained. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-002
FINDING 2024-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425 Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition The School entered into an agreement with a contractor for building renovations paid with funds from the Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the provisions of the Davis-Bacon Act. Cause The School did not maintain the contract for the renovation services. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and retained. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-002
FINDING 2024-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425 Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition The School entered into an agreement with a contractor for building renovations paid with funds from the Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the provisions of the Davis-Bacon Act. Cause The School did not maintain the contract for the renovation services. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and retained. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-001
FINDING 2024-001 DOCUMENT RETENTION SIGNIFICANT DEFICIENCY Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553 & 10.555 Criteria Per 7 CFR 200.334, “Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.” Condition Two claims for meal reimbursement were selected for testing. The School was unable to provide records of meals served. The School qualified for the Community Eligibility Provision program and all students receive free meals. Meals claimed were below the maximum that could have been claimed had all students obtained school meals each day of the periods under review. No determination of questioned costs could be made. Cause The School did not maintain documentation for each individual claim. Effect Reconciliation of meals served data to individual claims was not possible. Recommendation We recommend the School develop internal controls requiring the maintenance of documentation of meals served for the individual claims submitted for the program. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-001
FINDING 2024-001 DOCUMENT RETENTION SIGNIFICANT DEFICIENCY Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553 & 10.555 Criteria Per 7 CFR 200.334, “Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.” Condition Two claims for meal reimbursement were selected for testing. The School was unable to provide records of meals served. The School qualified for the Community Eligibility Provision program and all students receive free meals. Meals claimed were below the maximum that could have been claimed had all students obtained school meals each day of the periods under review. No determination of questioned costs could be made. Cause The School did not maintain documentation for each individual claim. Effect Reconciliation of meals served data to individual claims was not possible. Recommendation We recommend the School develop internal controls requiring the maintenance of documentation of meals served for the individual claims submitted for the program. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-002
FINDING 2024-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425 Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition The School entered into an agreement with a contractor for building renovations paid with funds from the Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the provisions of the Davis-Bacon Act. Cause The School did not maintain the contract for the renovation services. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and retained. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-002
FINDING 2024-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425 Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition The School entered into an agreement with a contractor for building renovations paid with funds from the Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the provisions of the Davis-Bacon Act. Cause The School did not maintain the contract for the renovation services. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and retained. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.
Finding 2024-002
FINDING 2024-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425 Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition The School entered into an agreement with a contractor for building renovations paid with funds from the Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the provisions of the Davis-Bacon Act. Cause The School did not maintain the contract for the renovation services. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and retained. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.