FAC Explorer

Audit 339701

FY End
2024-06-30
Total Expended
$4.99M
Findings
2
Programs
3
Organization: Phillips Fundamental Learning Center, Inc. (KS)
Year: 2024 Accepted: 2025-01-24
Auditor: Regier Carr & Monroe LLP CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520139 2024-003 Significant Deficiency - P
1096581 2024-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.92M Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $64,979 - 0
45.025 Promotion of the Arts Partnership Agreements $7,125 - 0

Contacts

Name Title Type
C1UUWDBBB3V3 Penny Dorpinghaus Auditee
3166847323 Laura Lehmer 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: PFLC has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of PFLC under programs of the federal government for the year ended June 30, 2024. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of PFLC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of PFLC.
Title: Summary of Significant Accounting Polices 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: PFLC has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: Indirect Cost Rate 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: PFLC has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. PFLC has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-003
2024-003 Segregation of Duties: Internal Control U.S. Department of Treasury No. 21.027 – Coronavirus State and Local Fiscal Recovery Funds Grant Period Year Ended June 30, 2024 Criteria: Some of the selected federal expenses lacked documented approval. Condition and Context: While disbursements were for allowable costs and related activities in the applicable period of performance, cash disbursements were made without documented approval. Three out of fifty-one transactions did not have documented approvals for expenses. Two of the three exceptions were due to ACH transactions lacking an approval process. A verbal approval was provided for one of the three transactions. The approval was unable to be verified, and no documentation of this approval was retained. Effect: Expenses requested for reimbursement could not be in compliance with the federal award and financial reporting may be inaccurate. Cause: The approval over electronic transactions was not implemented and routinely performed. Documentation of approval was not maintained in one instance of the selection. Recommendation: Internal controls over electronic payments should be established and documented to ensure appropriate segregation of duties and accurate grant reimbursement requests. Documentation of approval should be maintained to support the disbursement. Management Response: Processes are being implemented to ensure appropriate review process and document retention, see corrective action plan.
Finding 2024-003
2024-003 Segregation of Duties: Internal Control U.S. Department of Treasury No. 21.027 – Coronavirus State and Local Fiscal Recovery Funds Grant Period Year Ended June 30, 2024 Criteria: Some of the selected federal expenses lacked documented approval. Condition and Context: While disbursements were for allowable costs and related activities in the applicable period of performance, cash disbursements were made without documented approval. Three out of fifty-one transactions did not have documented approvals for expenses. Two of the three exceptions were due to ACH transactions lacking an approval process. A verbal approval was provided for one of the three transactions. The approval was unable to be verified, and no documentation of this approval was retained. Effect: Expenses requested for reimbursement could not be in compliance with the federal award and financial reporting may be inaccurate. Cause: The approval over electronic transactions was not implemented and routinely performed. Documentation of approval was not maintained in one instance of the selection. Recommendation: Internal controls over electronic payments should be established and documented to ensure appropriate segregation of duties and accurate grant reimbursement requests. Documentation of approval should be maintained to support the disbursement. Management Response: Processes are being implemented to ensure appropriate review process and document retention, see corrective action plan.