FAC Explorer

Audit 34862

FY End
2022-06-30
Total Expended
$1.01M
Findings
2
Programs
6
Organization: Ethos Academy: A Challenge Foundation Academy, Inc. (AZ)
Year: 2022 Accepted: 2023-03-05
Auditor: Fester & Chapman PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
36660 2022-101 Significant Deficiency - B
613102 2022-101 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Covid-19 Education Stabilization Fund $316,244 Yes 0
10.555 National School Lunch Program $221,901 - 0
84.010 Title I Grants to Local Educational Agencies $159,065 - 0
84.027 Special Education_grants to States $55,170 - 0
84.365 English Language Acquisition State Grants $4,389 - 0
84.367 Improving Teacher Quality State Grants $3,650 - 0

Contacts

Name Title Type
TK19DZXX5AC1 Tamara Garcia Auditee
6232493211 Kevin Camberg Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL ASSISTANCE LISTINGS NUMBER Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant transactions of Ethos Academy: A Challenge Foundation Academy, Inc. (the School), for the 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). De Minimis Rate Used: N Rate Explanation: The School did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR ?200.414. The program titles and Federal Assistance Listing numbers were obtained from the federal or pass-through grantor or the 2022 Federal Assistance Listings. When no Federal Assistance Listings numbers had been assigned to a program, the two digit federal agency identifier and the federal contract number were used. When there was no federal contract number, the two digit federal agency identifier and the word "unknown" were used.
Title: SUBRECIPIENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant transactions of Ethos Academy: A Challenge Foundation Academy, Inc. (the School), for the 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). De Minimis Rate Used: N Rate Explanation: The School did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR ?200.414. The School did not pass any funds onto subrecipients during the year ended June 30, 2022.

Finding Details

Finding 2022-101
FAL No. and Name: FAL 84.425D Covid-19 - Elementary and Secondary School Emergency Relief Award Number: Fund 21FESSII-110593-01A Federal Agency: Arizona Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR, ?200.430(i)(1)(i), the School should maintain records that are supported by a system of internal control which provides reasonable assurance that the charges are accurate. Condition and context: For one out of forty employees tested, changes made to the employee's compensation were not accurately documented in the employee's personnel file. Cause: The School needs to formalize its procedures to properly document changes made to employee compensation levels. Effect: The employee's compensation costs charged to the program where not accurately documented in their personnel file, however it was determined that they where paid the proper amount. Recommendation: To help ensure that when changes are made to compensation levels employees are accurately paid, the School should implement internal control policies and procedures that require updates being adequately documented in the employee's personnel file. Management's Corrective Action Plan is included at the end of this report.
Finding 2022-101
FAL No. and Name: FAL 84.425D Covid-19 - Elementary and Secondary School Emergency Relief Award Number: Fund 21FESSII-110593-01A Federal Agency: Arizona Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR, ?200.430(i)(1)(i), the School should maintain records that are supported by a system of internal control which provides reasonable assurance that the charges are accurate. Condition and context: For one out of forty employees tested, changes made to the employee's compensation were not accurately documented in the employee's personnel file. Cause: The School needs to formalize its procedures to properly document changes made to employee compensation levels. Effect: The employee's compensation costs charged to the program where not accurately documented in their personnel file, however it was determined that they where paid the proper amount. Recommendation: To help ensure that when changes are made to compensation levels employees are accurately paid, the School should implement internal control policies and procedures that require updates being adequately documented in the employee's personnel file. Management's Corrective Action Plan is included at the end of this report.