FAC Explorer

Audit 342496

FY End
2024-06-30
Total Expended
$1.86M
Findings
4
Programs
10
Organization: Legacy Traditional School - Surprise (AZ)
Year: 2024 Accepted: 2025-02-13
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523208 2024-001 - - L
523209 2024-002 - - B
1099650 2024-001 - - L
1099651 2024-002 - - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $686,821 Yes 2
84.027 Special Education Grants to States $475,547 - 0
10.555 National School Lunch Program $337,006 - 0
10.553 School Breakfast Program $55,234 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $29,246 - 0
84.424 Student Support and Academic Enrichment Program $17,738 - 0
84.365 English Language Acquisition State Grants $6,225 - 0
84.173 Special Education Preschool Grants $3,759 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $2,396 - 0
84.010 Title I Grants to Local Educational Agencies $814 - 0

Contacts

Name Title Type
GRZNUZZQ5W26 Leslie Lee Auditee
4802705438 Chris Jones Auditor
No contacts on file

Notes to SEFA

Title: Note 1. 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. Pass-through entity identifying numbers are presented where available. Of the federal expenditures presented in the Schedule, none were provided to subrecipients. De Minimis Rate Used: N Rate Explanation: The School did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Legacy Traditional School – Surprise (School) under programs of the federal government for the year ended June 30, 2024. The information in the 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 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: Note 4. Federal Loan Programs 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. Pass-through entity identifying numbers are presented where available. Of the federal expenditures presented in the Schedule, none were provided to subrecipients. De Minimis Rate Used: N Rate Explanation: The School did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The School did not have any federal loan programs during the year ended June 30, 2024.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary Emergency Relief and American Rescue Plan – Elementary and Secondary School Emergency Relief Assistance Listing Numbers: 84.425U Federal Award Program Year: July 1, 2023–July 30, 2024 Pass-Through Agency: Arizona Department of Education Pass-Through Number: S425U210038 Type of Finding: Other matter Compliance Requirement: Reporting – Special Reports Criteria: Grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds as set forth in compliance supplement. Condition: Annual performance report was filed, however support used for such reporting was not provided. Questioned Costs: None reportable Context: Management was unable to provide supporting documentation for the annual performance report filed, resulting in the auditor’s inability to perform key line item 2 (line 3.b10), as required by the compliance supplement. Effect: In the event support was required by funders, the School would be unable to provide necessary supporting documentation. Cause: The School did not adequately retain supporting documentation. Identification as a Repeat Finding: Not a repeat finding Recommendation: Supporting documentation for all required annual performance reports, and any required filings, should be maintained on School servers. Views of Responsible Officials and Planned Corrective Actions: Our management team has acknowledged the finding and is committed to maintaining all required annual performance reports supporting documentation. We will require that responsible program manager ensures retention of such documentation.
Finding 2024-002
Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary Emergency Relief and American Rescue Plan – Elementary and Secondary School Emergency Relief Assistance Listing Numbers: 84.425U Federal Award Program Year: July 1, 2023–July 30, 2024 Pass-Through Agency: Arizona Department of Education Pass-Through Number: S425U210038 Type of Finding: Other matter Compliance Requirement: Allowable Cost/Cost Principles Criteria: Grantees must follow allowable cost reimbursement standards, as defined in the compliance supplement for each specific federal program. Condition: The School’s policy regarding allowable cost recognition and requests for reimbursement follow those requirements set forth by the federal program. Questioned Costs: None reportable. Context: Management used the monthly premium rate for vision benefits instead of the bimonthly rate when calculating the reimbursement amount. Effect: The School obtained reimbursement funding over the allowable amount. Cause: The School entered the wrong rate into the payroll software. Identification as a Repeat Finding: Not a repeat finding Recommendation: Review the rate entered into the payroll software to ensure that the proper amounts are being calculated for reimbursement. Views of Responsible Officials and Planned Corrective Actions: Our management team has acknowledged the finding and has immediately implemented a review process for all federal program reimbursement submissions.
Finding 2024-001
Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary Emergency Relief and American Rescue Plan – Elementary and Secondary School Emergency Relief Assistance Listing Numbers: 84.425U Federal Award Program Year: July 1, 2023–July 30, 2024 Pass-Through Agency: Arizona Department of Education Pass-Through Number: S425U210038 Type of Finding: Other matter Compliance Requirement: Reporting – Special Reports Criteria: Grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds as set forth in compliance supplement. Condition: Annual performance report was filed, however support used for such reporting was not provided. Questioned Costs: None reportable Context: Management was unable to provide supporting documentation for the annual performance report filed, resulting in the auditor’s inability to perform key line item 2 (line 3.b10), as required by the compliance supplement. Effect: In the event support was required by funders, the School would be unable to provide necessary supporting documentation. Cause: The School did not adequately retain supporting documentation. Identification as a Repeat Finding: Not a repeat finding Recommendation: Supporting documentation for all required annual performance reports, and any required filings, should be maintained on School servers. Views of Responsible Officials and Planned Corrective Actions: Our management team has acknowledged the finding and is committed to maintaining all required annual performance reports supporting documentation. We will require that responsible program manager ensures retention of such documentation.
Finding 2024-002
Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary Emergency Relief and American Rescue Plan – Elementary and Secondary School Emergency Relief Assistance Listing Numbers: 84.425U Federal Award Program Year: July 1, 2023–July 30, 2024 Pass-Through Agency: Arizona Department of Education Pass-Through Number: S425U210038 Type of Finding: Other matter Compliance Requirement: Allowable Cost/Cost Principles Criteria: Grantees must follow allowable cost reimbursement standards, as defined in the compliance supplement for each specific federal program. Condition: The School’s policy regarding allowable cost recognition and requests for reimbursement follow those requirements set forth by the federal program. Questioned Costs: None reportable. Context: Management used the monthly premium rate for vision benefits instead of the bimonthly rate when calculating the reimbursement amount. Effect: The School obtained reimbursement funding over the allowable amount. Cause: The School entered the wrong rate into the payroll software. Identification as a Repeat Finding: Not a repeat finding Recommendation: Review the rate entered into the payroll software to ensure that the proper amounts are being calculated for reimbursement. Views of Responsible Officials and Planned Corrective Actions: Our management team has acknowledged the finding and has immediately implemented a review process for all federal program reimbursement submissions.