Audit 34598

Program Information: 21st Century Community Learning Centers (ALN #93.575) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Federal Compliance Requirement: M. Subrecipient Monitoring- All accounting records must be supported by source documentation and retained in order to show for what purpose funds were spent per the grant agreement. Condition: The Organization is not in compliance with certain subrecipient monitoring conditions as required. Monthly subrecipient invoice did not agree to accounting records. Cause: Administrative oversight with respect to subrecipient monitoring requirements. Effect or Potential Effect: The Organization was not in compliance with subrecipient monitoring requirements. Questioned Costs: Below reporting threshold. Context: For 1 of 15 monthly invoices selected for testing, the Organization did not properly verify that the underlying expenditures incurred matched the invoice amounts requested for reimbursement from the State. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization enhance its policies and procedures over subrecipient monitoring to ensure accurate invoicing. Views of Responsible Officials and Planned Corrective Actions: Management will update subrecipient monitoring procedures to ensure compliance with subrecipient monitoring requirements.

Program Information: 21st Century Community Learning Centers (ALN #93.575) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Federal Compliance Requirement: M. Subrecipient Monitoring- All accounting records must be supported by source documentation and retained in order to show for what purpose funds were spent per the grant agreement. Condition: The Organization is not in compliance with certain subrecipient monitoring conditions as required. Monthly subrecipient invoice did not agree to accounting records. Cause: Administrative oversight with respect to subrecipient monitoring requirements. Effect or Potential Effect: The Organization was not in compliance with subrecipient monitoring requirements. Questioned Costs: Below reporting threshold. Context: For 1 of 15 monthly invoices selected for testing, the Organization did not properly verify that the underlying expenditures incurred matched the invoice amounts requested for reimbursement from the State. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization enhance its policies and procedures over subrecipient monitoring to ensure accurate invoicing. Views of Responsible Officials and Planned Corrective Actions: Management will update subrecipient monitoring procedures to ensure compliance with subrecipient monitoring requirements.

Program Information: The Tennessee COVID-19 Health Disparities Initiative (ALN #93.391) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting- The auditee must prepare a schedule of expenditures of Federal awards (the ?SEFA?) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For Research and Development (?R&D?), total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the passthrough entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listing number or other identifying number when the Assistance Listing information is not available. For a cluster of programs also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in 2 CFR 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in 2 CFR 200.414. Condition: The SEFA as prepared by management did not originally include one federal grant with federal expenditures during the year. Cause: Administrative oversight with respect to preparation of the SEFA. Effect or Potential Effect: The original draft SEFA was incomplete. Questioned Costs: None. Context: The original draft SEFA was incomplete. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization enhance its procedures and internal controls with respect to preparation and review of the SEFA including a comparison of the general ledger to the SEFA to assess completeness. Views of Responsible Officials and Planned Corrective Actions: Management will review grant agreements to confirm whether funding received from private entities are federal funds that should be reported on the SEFA.

Program Information: 21st Century Community Learning Centers (ALN #93.575) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Federal Compliance Requirement: M. Subrecipient Monitoring- All accounting records must be supported by source documentation and retained in order to show for what purpose funds were spent per the grant agreement. Condition: The Organization is not in compliance with certain subrecipient monitoring conditions as required. Monthly subrecipient invoice did not agree to accounting records. Cause: Administrative oversight with respect to subrecipient monitoring requirements. Effect or Potential Effect: The Organization was not in compliance with subrecipient monitoring requirements. Questioned Costs: Below reporting threshold. Context: For 1 of 15 monthly invoices selected for testing, the Organization did not properly verify that the underlying expenditures incurred matched the invoice amounts requested for reimbursement from the State. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization enhance its policies and procedures over subrecipient monitoring to ensure accurate invoicing. Views of Responsible Officials and Planned Corrective Actions: Management will update subrecipient monitoring procedures to ensure compliance with subrecipient monitoring requirements.

Program Information: 21st Century Community Learning Centers (ALN #93.575) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Federal Compliance Requirement: M. Subrecipient Monitoring- All accounting records must be supported by source documentation and retained in order to show for what purpose funds were spent per the grant agreement. Condition: The Organization is not in compliance with certain subrecipient monitoring conditions as required. Monthly subrecipient invoice did not agree to accounting records. Cause: Administrative oversight with respect to subrecipient monitoring requirements. Effect or Potential Effect: The Organization was not in compliance with subrecipient monitoring requirements. Questioned Costs: Below reporting threshold. Context: For 1 of 15 monthly invoices selected for testing, the Organization did not properly verify that the underlying expenditures incurred matched the invoice amounts requested for reimbursement from the State. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization enhance its policies and procedures over subrecipient monitoring to ensure accurate invoicing. Views of Responsible Officials and Planned Corrective Actions: Management will update subrecipient monitoring procedures to ensure compliance with subrecipient monitoring requirements.

Program Information: The Tennessee COVID-19 Health Disparities Initiative (ALN #93.391) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting- The auditee must prepare a schedule of expenditures of Federal awards (the ?SEFA?) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For Research and Development (?R&D?), total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the passthrough entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listing number or other identifying number when the Assistance Listing information is not available. For a cluster of programs also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in 2 CFR 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in 2 CFR 200.414. Condition: The SEFA as prepared by management did not originally include one federal grant with federal expenditures during the year. Cause: Administrative oversight with respect to preparation of the SEFA. Effect or Potential Effect: The original draft SEFA was incomplete. Questioned Costs: None. Context: The original draft SEFA was incomplete. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization enhance its procedures and internal controls with respect to preparation and review of the SEFA including a comparison of the general ledger to the SEFA to assess completeness. Views of Responsible Officials and Planned Corrective Actions: Management will review grant agreements to confirm whether funding received from private entities are federal funds that should be reported on the SEFA.