FAC Explorer

Audit 336394

FY End
2023-06-30
Total Expended
$1.58M
Findings
2
Programs
6
Organization: The Montessori Network (IL)
Year: 2023 Accepted: 2025-01-08
Auditor: Porte Brown LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518086 2023-001 Significant Deficiency Yes AB
1094528 2023-001 Significant Deficiency Yes AB

Programs

ALN Program Spent Major Findings
93.600 Head Start $1.04M Yes 1
84.425 Education Stabilization Fund $279,915 - 0
84.010 Title I Grants to Local Educational Agencies $242,961 - 0
84.367 Improving Teacher Quality State Grants $9,517 - 0
84.424 Student Support and Academic Enrichment Program $2,355 - 0
84.365 English Language Acquisition State Grants $2,040 - 0

Contacts

Name Title Type
CTNGYT2E1RL6 Maggie Mikuzis Auditee
7735359255 Genevra Knight 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. 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: Y Rate Explanation: For the year ended June 30, 2023, the School had elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of The Montessori Network (the “School”). The information in this 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 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.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the 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: Y Rate Explanation: For the year ended June 30, 2023, the School had elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization provided no amounts to subrecipients from the federal awards listed.
Title: NON-CASH ASSISTANCE Accounting Policies: Expenditures reported on the 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: Y Rate Explanation: For the year ended June 30, 2023, the School had elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization had no non-cash assistance, federal insurance, or loan guarantees to be disclosed as required by the Uniform Guidance.
Title: LOANS OUTSTANDING Accounting Policies: Expenditures reported on the 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: Y Rate Explanation: For the year ended June 30, 2023, the School had elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. There were no loans outstanding at une 30, 2023 related to the federal awards listed.
Title: DONATED PERSONAL PROTECTIVE EQUIPMENT Accounting Policies: Expenditures reported on the 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: Y Rate Explanation: For the year ended June 30, 2023, the School had elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization did not receive donated personal protective equipment during the year ended June 30, 2023.

Finding Details

Finding 2023-001
Condition : Cost allocations for salaries and related expenses allocated across program activities, including federal award programs were improperly submitted for reimbursement under the Head Start program. The identified errors represented underallocation of hours compared to the approved personnel activity reports and timecards. Criteria : Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations accurately represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause : Personnel activity reports submitted by employees are not consistently reconciled to the vouchers submitted for federal and other programs. Effect : Because the reconciliation process in place was not consistently followed to agree to personnel activity reports to costs allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recomendation : Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs. Views of Responsible Officials and Planned Corrective Actions : This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of June 30, 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations. Finding was repeated during FY23, as the School was in the process of transitioning accountants during the period of exceptions noted.
Finding 2023-001
Condition : Cost allocations for salaries and related expenses allocated across program activities, including federal award programs were improperly submitted for reimbursement under the Head Start program. The identified errors represented underallocation of hours compared to the approved personnel activity reports and timecards. Criteria : Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations accurately represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause : Personnel activity reports submitted by employees are not consistently reconciled to the vouchers submitted for federal and other programs. Effect : Because the reconciliation process in place was not consistently followed to agree to personnel activity reports to costs allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recomendation : Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs. Views of Responsible Officials and Planned Corrective Actions : This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of June 30, 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations. Finding was repeated during FY23, as the School was in the process of transitioning accountants during the period of exceptions noted.