FAC Explorer

Audit 348931

FY End
2023-06-30
Total Expended
$768,378
Findings
6
Programs
5
Organization: Northeast Woodland Chartered Public School (VT)
Year: 2023 Accepted: 2025-03-27
Auditor: Nathan Wechsler & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
537640 2023-001 Material Weakness - P
537641 2023-002 Significant Deficiency - AI
537642 2023-003 Significant Deficiency - A
1114082 2023-001 Material Weakness - P
1114083 2023-002 Significant Deficiency - AI
1114084 2023-003 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $630,468 Yes 3
84.010 Title I Grants to Local Educational Agencies $91,509 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,450 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $2,951 - 0

Contacts

Name Title Type
KG2ZUNNX2XE3 Caitlin Blundell Auditee
6035529073 Callie Chase Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northeast Woodland Chartered Public School (“the School”) under programs of the federal government for the year ended June 30, 2023. The Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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, results of operations or cash flows of the Company. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are presented on the same basis of accounting as the School’s financial statements. The School uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Note 3. Program Costs The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 4. Major Programs In accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northeast Woodland Chartered Public School (“the School”) under programs of the federal government for the year ended June 30, 2023. The Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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, results of operations or cash flows of the Company.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northeast Woodland Chartered Public School (“the School”) under programs of the federal government for the year ended June 30, 2023. The Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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, results of operations or cash flows of the Company. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are presented on the same basis of accounting as the School’s financial statements. The School uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Note 3. Program Costs The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 4. Major Programs In accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. Expenditures reported on the Schedule are presented on the same basis of accounting as the School’s financial statements. The School uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Note 3. Program Costs Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northeast Woodland Chartered Public School (“the School”) under programs of the federal government for the year ended June 30, 2023. The Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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, results of operations or cash flows of the Company. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are presented on the same basis of accounting as the School’s financial statements. The School uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Note 3. Program Costs The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 4. Major Programs In accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 4. Major Programs Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northeast Woodland Chartered Public School (“the School”) under programs of the federal government for the year ended June 30, 2023. The Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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, results of operations or cash flows of the Company. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are presented on the same basis of accounting as the School’s financial statements. The School uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Note 3. Program Costs The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 4. Major Programs In accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. In accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs.
Title: Note 5. Indirect Costs Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northeast Woodland Chartered Public School (“the School”) under programs of the federal government for the year ended June 30, 2023. The Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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, results of operations or cash flows of the Company. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are presented on the same basis of accounting as the School’s financial statements. The School uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Note 3. Program Costs The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 4. Major Programs In accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The School has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-001
Finding type: Material weakness in internal controls over financial reporting. Criteria: The school is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of the School’s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining internal books and records and reporting the external financial statements and the related footnotes. Conditions and context: The current staffing of the School does not allow the School to have an internal control system in place designed to provide for the preparation of the financials and related footnotes being audited. The School requested that the external auditors draft the financial statements and accompanying notes as a result. Cause of condition: Due to the cost and other considerations, the School has requested that their auditors draft the financial statement and related footnotes. Effect of condition: As a result of this condition, the School lacks internal controls over the preparation of the financial statements in accordance with GAAP, and instead relied in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the School ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principles in review and in taking responsibility over the financial statement and footnotes prepared by the external auditors. View of responsible officials and planned corrective action: The School has evaluated the cost vs. benefit of establishing internal controls over the preparation of financial statements in accordance with GAAP and determined that it is in the best interest of the School to outsource this task to its external auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for their content and preparation. Planned implementation date of corrective action: On-going. The School will continue to evaluate the cost vs. benefit of having someone in management capable of preparation and/or of the financial statements in accordance with GAAP. Person responsible for corrective action: Sarah Arnold, Head of School
Finding 2023-002
Federal Agency: U.S. Department of Education Award Name: Charter Schools Program Year: 2023 Assistance Listing Number: 84.282 Compliance: Activities Allowed and Unallowed and ProcurementFinding Type: Significant deficiency in internal controls and on internal controls over compliance. Criteria: Management is responsible for maintaining adequate records for vendor transactions charged to federal awards that accurately reflect expenses. These records must include an invoice with a signature from a knowledgeable and authorized individual approving the expense. Condition: During control and compliance testing, it was noted that approvals for vendor expenses charged to the federal award were not retained. Context: Of the 60 occurrences tested, 55 were missing any type of approval support. Cause of condition: The School received a large, one-time, federal grant in the current year. Prior to this the School rarely received any large dollar federal grants. The internal control of the School functions such that staff fill out an online request form which was sent to the head of school for review. She then sent the request to the (former) business manager to make the purchase. The sent approval was not retained. Effect of condition: As a result of this condition, the School’s vendor expenditures charged to the federal grant lacked adequate control and compliance documentation. Recommendation: It is recommended that the School maintain adequate records for expenditures charged to federal awards, such as an invoice with clear approval and documentation that the expense should be appropriately charged to the grant. View of Responsible Officials and Planned Corrective Action: In May of 2023, the school implemented a dual approval for expenses. Expense requests are submitted in writing and signed by the Head of School. These requests are saved. There is an additional approval that happens in the payment system, BILL. Planned Implementation Date of Corrective Action: May of 2023. Person Responsible for Corrective Action: Sarah Arnold, Head of School
Finding 2023-003
Federal Agency: U.S. Department of Education Award Name: Charter Schools Program Year: 2023 Assistance Listing Number: 84.282 Compliance: Activities Allowed and Unallowed Finding Type: Significant deficiency in internal controls Criteria: Management is responsible for maintaining adequate records for payroll transactions charged to federal awards that accurately reflect payroll expenses. These records must include employee benefit election forms signed by the respective employees. Condition: During control and compliance testing, it was noted that retirement benefit forms for payroll expenses charged to the federal award were not retained. Context: Of the 9 occurrences tested, 6 were missing benefit forms.Cause of condition: The School had employed an individual to oversee the business functions previously that did not retain this documentation. Effect of condition: As a result of this condition, the School’s payroll expenditures charged to the federal grant lacked adequate control documentation. Recommendation: It is recommended that the School maintain adequate records for payroll expenditures charged to federal awards, such as an retirement benefit forms. View of Responsible Officials and Planned Corrective Action: The school will retain a paper form filled out by employees annually, which details their payroll benefit settings for the year. The form will be signed by the Head of School and the employee. If staff members adjust any deductions during the year, the form will be adjusted and initialed by the employee and the Head of School. Planned Implementation Date of Corrective Action: February 22, 2025. Person Responsible for Corrective Action: Sarah Arnold, Head of School
Finding 2023-001
Finding type: Material weakness in internal controls over financial reporting. Criteria: The school is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of the School’s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining internal books and records and reporting the external financial statements and the related footnotes. Conditions and context: The current staffing of the School does not allow the School to have an internal control system in place designed to provide for the preparation of the financials and related footnotes being audited. The School requested that the external auditors draft the financial statements and accompanying notes as a result. Cause of condition: Due to the cost and other considerations, the School has requested that their auditors draft the financial statement and related footnotes. Effect of condition: As a result of this condition, the School lacks internal controls over the preparation of the financial statements in accordance with GAAP, and instead relied in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the School ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principles in review and in taking responsibility over the financial statement and footnotes prepared by the external auditors. View of responsible officials and planned corrective action: The School has evaluated the cost vs. benefit of establishing internal controls over the preparation of financial statements in accordance with GAAP and determined that it is in the best interest of the School to outsource this task to its external auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for their content and preparation. Planned implementation date of corrective action: On-going. The School will continue to evaluate the cost vs. benefit of having someone in management capable of preparation and/or of the financial statements in accordance with GAAP. Person responsible for corrective action: Sarah Arnold, Head of School
Finding 2023-002
Federal Agency: U.S. Department of Education Award Name: Charter Schools Program Year: 2023 Assistance Listing Number: 84.282 Compliance: Activities Allowed and Unallowed and ProcurementFinding Type: Significant deficiency in internal controls and on internal controls over compliance. Criteria: Management is responsible for maintaining adequate records for vendor transactions charged to federal awards that accurately reflect expenses. These records must include an invoice with a signature from a knowledgeable and authorized individual approving the expense. Condition: During control and compliance testing, it was noted that approvals for vendor expenses charged to the federal award were not retained. Context: Of the 60 occurrences tested, 55 were missing any type of approval support. Cause of condition: The School received a large, one-time, federal grant in the current year. Prior to this the School rarely received any large dollar federal grants. The internal control of the School functions such that staff fill out an online request form which was sent to the head of school for review. She then sent the request to the (former) business manager to make the purchase. The sent approval was not retained. Effect of condition: As a result of this condition, the School’s vendor expenditures charged to the federal grant lacked adequate control and compliance documentation. Recommendation: It is recommended that the School maintain adequate records for expenditures charged to federal awards, such as an invoice with clear approval and documentation that the expense should be appropriately charged to the grant. View of Responsible Officials and Planned Corrective Action: In May of 2023, the school implemented a dual approval for expenses. Expense requests are submitted in writing and signed by the Head of School. These requests are saved. There is an additional approval that happens in the payment system, BILL. Planned Implementation Date of Corrective Action: May of 2023. Person Responsible for Corrective Action: Sarah Arnold, Head of School
Finding 2023-003
Federal Agency: U.S. Department of Education Award Name: Charter Schools Program Year: 2023 Assistance Listing Number: 84.282 Compliance: Activities Allowed and Unallowed Finding Type: Significant deficiency in internal controls Criteria: Management is responsible for maintaining adequate records for payroll transactions charged to federal awards that accurately reflect payroll expenses. These records must include employee benefit election forms signed by the respective employees. Condition: During control and compliance testing, it was noted that retirement benefit forms for payroll expenses charged to the federal award were not retained. Context: Of the 9 occurrences tested, 6 were missing benefit forms.Cause of condition: The School had employed an individual to oversee the business functions previously that did not retain this documentation. Effect of condition: As a result of this condition, the School’s payroll expenditures charged to the federal grant lacked adequate control documentation. Recommendation: It is recommended that the School maintain adequate records for payroll expenditures charged to federal awards, such as an retirement benefit forms. View of Responsible Officials and Planned Corrective Action: The school will retain a paper form filled out by employees annually, which details their payroll benefit settings for the year. The form will be signed by the Head of School and the employee. If staff members adjust any deductions during the year, the form will be adjusted and initialed by the employee and the Head of School. Planned Implementation Date of Corrective Action: February 22, 2025. Person Responsible for Corrective Action: Sarah Arnold, Head of School