FAC Explorer

Audit 34699

FY End
2022-06-30
Total Expended
$4.76M
Findings
4
Programs
9
Organization: Fit Kids, Inc., Dba Champion Schools (AZ)
Year: 2022 Accepted: 2023-03-30
Auditor: Lorenzo Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38026 2022-001 Significant Deficiency - AF
38027 2022-002 - - AF
614468 2022-001 Significant Deficiency - AF
614469 2022-002 - - AF

Programs

ALN Program Spent Major Findings
10.559 Summer Food Service Program for Children $1.27M - 0
84.027 Special Education_grants to States $270,636 - 0
32.009 Emergency Connectivity Fund Program $261,990 Yes 2
84.010 Title I Grants to Local Educational Agencies $232,894 - 0
10.582 Fresh Fruit and Vegetable Program $29,584 - 0
84.425 Covid-19 - Education Stabilization Fund $24,644 Yes 0
84.365 English Language Acquisition State Grants $22,306 - 0
10.555 National School Lunch Program $14,675 - 0
84.173 Special Education_preschool Grants $6,125 - 0

Contacts

Name Title Type
TLPJVESB4J79 Carolyn Sawyer Auditee
4806590044 Anthony Lorenzo Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards 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 auditee did not use the de minimis cost rate. The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Fit Kids, Inc., dba Champion Schools and Subsidiary under programs of the federal government for the fiscal year ended June 30, 2022. 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). Because the Schedule presents only a selected portion of the operations of Fit Kids, Inc., dba Champion Schools and Subsidiary, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Fit Kids, Inc., dba Champion Schools and Subsidiary.
Title: Catalog of Federal Domestic Assistance (CFDA) Number Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards 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 auditee did not use the de minimis cost rate. The program titles and CFDA numbers were obtained from the federal or pass-through grantor or the sam.gov website.
Title: Cluster of Programs Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards 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 auditee did not use the de minimis cost rate. Clusters of programs are groupings of closely related programs that share common compliance requirements. A cluster of programs is considered one program for determining major programs. The Child Nutrition Cluster and Special Education Cluster were considered a cluster for the purposes of our audit.

Finding Details

Finding 2022-001
FEDERAL COMMUNICATIONS COMMISSION EMERGENCY CONNECTIVITY FUND PROGRAM CFDA #: 32.009 DIRECT FUNDING REFERENCE: 2022 -001 CONDITION The asset inventory listing did not identify the person receiving the devices that were purchased with the Program?s funds. Additionally, the asset inventory listing of the devices only listed 738 of the 800 devices purchased with Program funds. CRITERIA 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. EFFECT Purchases made with grant program funds may not meet the allowability criteria, resulting in funds needing to be returned to the granting agency. CAUSE The School was not aware of all of the compliance requirements. RECOMMENDATION AND BENEFIT Procedures should be improved to ensure that appropriate personnel are knowledgeable of, and have a good understanding of, each grant?s compliance requirements. New grants provide additional risk and therefore, more than one person should review the grant requirements. This will help ensure that the School is aware of the requirements for each grant received, which should help ensure compliance with the various grant requirements.
Finding 2022-002
FEDERAL COMMUNICATIONS COMMISSION EMERGENCY CONNECTIVITY FUND PROGRAM CFDA #: 32.009 DIRECT FUNDING REFERENCE: 2022 -2 QUESTIONED COSTS: $22,010 CONDITION The asset inventory listing did not identify the person receiving the devices that were purchased with the Program?s funds. Additionally, the asset inventory listing of the devices only listed 738 of the 800 devices purchased with Program funds. CRITERIA In accordance with the OMB Compliance Supplement, for each connected device or other piece of equipment provided to an individual student, the asset inventory must identify, among other things, the full name of the person to whom the device or other piece of equipment was provided, and the dates the device/equipment was loaned out and returned, or the date the school was notified the device/equipment was missing , lost, or damaged. Additionally, the Program?s funded devices must be used primarily for off-campus educational purposes and by students, school staff, and library patrons with otherwise unmet needs. EFFECT The School did not comply with the Equipment/Real Property Management compliance requirements, and by not identifying the person receiving the devices it is difficult to determine if the access and use of the devices was limited to persons with an unmet need. CAUSE The School was not aware of all of the compliance requirements. RECOMMENDATION AND BENEFIT The asset inventory listing should be updated to include the names of the students receiving the devices, the date the device is/was provided and returned, or if the device is missing, lost, or damaged. Also, for each student name listed as being provided a device, the school should document how the student was identified as having an unmet need. Additionally, each device purchased by the Program should be accounted for on the asset inventory listing. This will help the School comply with the requirements of the Emergency Connectivity Fund Program.
Finding 2022-001
FEDERAL COMMUNICATIONS COMMISSION EMERGENCY CONNECTIVITY FUND PROGRAM CFDA #: 32.009 DIRECT FUNDING REFERENCE: 2022 -001 CONDITION The asset inventory listing did not identify the person receiving the devices that were purchased with the Program?s funds. Additionally, the asset inventory listing of the devices only listed 738 of the 800 devices purchased with Program funds. CRITERIA 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. EFFECT Purchases made with grant program funds may not meet the allowability criteria, resulting in funds needing to be returned to the granting agency. CAUSE The School was not aware of all of the compliance requirements. RECOMMENDATION AND BENEFIT Procedures should be improved to ensure that appropriate personnel are knowledgeable of, and have a good understanding of, each grant?s compliance requirements. New grants provide additional risk and therefore, more than one person should review the grant requirements. This will help ensure that the School is aware of the requirements for each grant received, which should help ensure compliance with the various grant requirements.
Finding 2022-002
FEDERAL COMMUNICATIONS COMMISSION EMERGENCY CONNECTIVITY FUND PROGRAM CFDA #: 32.009 DIRECT FUNDING REFERENCE: 2022 -2 QUESTIONED COSTS: $22,010 CONDITION The asset inventory listing did not identify the person receiving the devices that were purchased with the Program?s funds. Additionally, the asset inventory listing of the devices only listed 738 of the 800 devices purchased with Program funds. CRITERIA In accordance with the OMB Compliance Supplement, for each connected device or other piece of equipment provided to an individual student, the asset inventory must identify, among other things, the full name of the person to whom the device or other piece of equipment was provided, and the dates the device/equipment was loaned out and returned, or the date the school was notified the device/equipment was missing , lost, or damaged. Additionally, the Program?s funded devices must be used primarily for off-campus educational purposes and by students, school staff, and library patrons with otherwise unmet needs. EFFECT The School did not comply with the Equipment/Real Property Management compliance requirements, and by not identifying the person receiving the devices it is difficult to determine if the access and use of the devices was limited to persons with an unmet need. CAUSE The School was not aware of all of the compliance requirements. RECOMMENDATION AND BENEFIT The asset inventory listing should be updated to include the names of the students receiving the devices, the date the device is/was provided and returned, or if the device is missing, lost, or damaged. Also, for each student name listed as being provided a device, the school should document how the student was identified as having an unmet need. Additionally, each device purchased by the Program should be accounted for on the asset inventory listing. This will help the School comply with the requirements of the Emergency Connectivity Fund Program.