FAC Explorer

Audit 354101

FY End
2024-06-30
Total Expended
$1.05M
Findings
4
Programs
8
Organization: Wings Academy I (OH)
Year: 2024 Accepted: 2025-04-22
Auditor: Rea & Associates INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555600 2024-002 Significant Deficiency - AB
555601 2024-002 Significant Deficiency - AB
1132042 2024-002 Significant Deficiency - AB
1132043 2024-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $536,783 Yes 1
84.010 Title I Grants to Local Educational Agencies $179,046 - 0
10.555 National School Lunch Program $57,199 - 0
10.553 School Breakfast Program $28,338 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $17,131 - 0
84.027 Special Education Grants to States $10,880 - 0
84.424 Student Support and Academic Enrichment Program $7,647 - 0
10.582 Fresh Fruit and Vegetable Program $3,587 - 0

Contacts

Name Title Type
Y3LGV74BLFL4 Stephanie Ataya Auditee
3305648531 Danny Sklenicka Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Wings Academy 1, Cuyahoga County, Ohio (the School) under programs of the federal government for the year ended June 30, 2024. The information on this Schedule is prepared 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 the School, it is not intended to and does not present the financial position, changes in net position, or cash flows of the School.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
Title: NOTE C - INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE D - CHILD NUTRITION CLUSTER Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School commingles cash receipts from the U.S. Department of Agriculture with similar State Grants. When reporting expenditures on this Schedule, the School assumes it expends federal monies first.
Title: NOTE E - TRANSER BETWEEN PROGRAM YEARS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School generally must spend Federal assistance within 15 months of receipt. However with Ohio Department of Education and Workforce (ODEW) approval, the School can transfer (carry over) unspent Federal assistance to the succeeding year, thus allowing the School a total of 27 months to spend the assistance. During fiscal year 2024, the ODEW authorized the following transfers:

Finding Details

Finding 2024-002
Finding Number: 2024-002 Federal Program: Education Stabilization Fund: COVID-19 – ARP ESSER Federal Award Identification Number and Year: N/A, 2023 and 2024 Assistance Listing Number (ALN): 84.425U Federal Awarding Agency: U.S. Department of Education Compliance Requirement: Allowable Activities, Allowable Costs/Cost Principles Pass-through Entity: Ohio Department of Education and Workforce Repeat Finding: No Significant Deficiency and Noncompliance Criteria: Federal regulation (2 CFR 200.303(a)) requires that non-federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The School had unallowable activities and unallowable costs charged to the grant related to sales tax, of which the School is tax exempt. Questioned Costs: Total of $18,753. Identification of How Questioned Costs Were Computed: Total known questioned costs of $4,332, and total projection of $14,421 for a total of $18,753. Context: In testing ARP ESSER nonpayroll costs, it was noted that the School charged a vendor quote to the grant, which included sales tax of $3,834, instead of charging the actual invoice amount paid to the vendor. For another testing selection, there was also an additional $498 of sales tax charged to the grant. Cause and Effect: The School did not have internal controls in place to ensure that only allowable costs are charged to federal grants. As a result, the School charged unallowable expenses to the grant. Recommendation: We recommend the School review the federal award allowable uses and implement a process to ensure that costs are allowable prior to payment. Failure to comply with the federal award allowable uses could lead to noncompliance and future questioned costs. Views of Responsible Officials: See the Corrective Action Plan.
Finding 2024-002
Finding Number: 2024-002 Federal Program: Education Stabilization Fund: COVID-19 – ARP ESSER Federal Award Identification Number and Year: N/A, 2023 and 2024 Assistance Listing Number (ALN): 84.425U Federal Awarding Agency: U.S. Department of Education Compliance Requirement: Allowable Activities, Allowable Costs/Cost Principles Pass-through Entity: Ohio Department of Education and Workforce Repeat Finding: No Significant Deficiency and Noncompliance Criteria: Federal regulation (2 CFR 200.303(a)) requires that non-federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The School had unallowable activities and unallowable costs charged to the grant related to sales tax, of which the School is tax exempt. Questioned Costs: Total of $18,753. Identification of How Questioned Costs Were Computed: Total known questioned costs of $4,332, and total projection of $14,421 for a total of $18,753. Context: In testing ARP ESSER nonpayroll costs, it was noted that the School charged a vendor quote to the grant, which included sales tax of $3,834, instead of charging the actual invoice amount paid to the vendor. For another testing selection, there was also an additional $498 of sales tax charged to the grant. Cause and Effect: The School did not have internal controls in place to ensure that only allowable costs are charged to federal grants. As a result, the School charged unallowable expenses to the grant. Recommendation: We recommend the School review the federal award allowable uses and implement a process to ensure that costs are allowable prior to payment. Failure to comply with the federal award allowable uses could lead to noncompliance and future questioned costs. Views of Responsible Officials: See the Corrective Action Plan.
Finding 2024-002
Finding Number: 2024-002 Federal Program: Education Stabilization Fund: COVID-19 – ARP ESSER Federal Award Identification Number and Year: N/A, 2023 and 2024 Assistance Listing Number (ALN): 84.425U Federal Awarding Agency: U.S. Department of Education Compliance Requirement: Allowable Activities, Allowable Costs/Cost Principles Pass-through Entity: Ohio Department of Education and Workforce Repeat Finding: No Significant Deficiency and Noncompliance Criteria: Federal regulation (2 CFR 200.303(a)) requires that non-federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The School had unallowable activities and unallowable costs charged to the grant related to sales tax, of which the School is tax exempt. Questioned Costs: Total of $18,753. Identification of How Questioned Costs Were Computed: Total known questioned costs of $4,332, and total projection of $14,421 for a total of $18,753. Context: In testing ARP ESSER nonpayroll costs, it was noted that the School charged a vendor quote to the grant, which included sales tax of $3,834, instead of charging the actual invoice amount paid to the vendor. For another testing selection, there was also an additional $498 of sales tax charged to the grant. Cause and Effect: The School did not have internal controls in place to ensure that only allowable costs are charged to federal grants. As a result, the School charged unallowable expenses to the grant. Recommendation: We recommend the School review the federal award allowable uses and implement a process to ensure that costs are allowable prior to payment. Failure to comply with the federal award allowable uses could lead to noncompliance and future questioned costs. Views of Responsible Officials: See the Corrective Action Plan.
Finding 2024-002
Finding Number: 2024-002 Federal Program: Education Stabilization Fund: COVID-19 – ARP ESSER Federal Award Identification Number and Year: N/A, 2023 and 2024 Assistance Listing Number (ALN): 84.425U Federal Awarding Agency: U.S. Department of Education Compliance Requirement: Allowable Activities, Allowable Costs/Cost Principles Pass-through Entity: Ohio Department of Education and Workforce Repeat Finding: No Significant Deficiency and Noncompliance Criteria: Federal regulation (2 CFR 200.303(a)) requires that non-federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The School had unallowable activities and unallowable costs charged to the grant related to sales tax, of which the School is tax exempt. Questioned Costs: Total of $18,753. Identification of How Questioned Costs Were Computed: Total known questioned costs of $4,332, and total projection of $14,421 for a total of $18,753. Context: In testing ARP ESSER nonpayroll costs, it was noted that the School charged a vendor quote to the grant, which included sales tax of $3,834, instead of charging the actual invoice amount paid to the vendor. For another testing selection, there was also an additional $498 of sales tax charged to the grant. Cause and Effect: The School did not have internal controls in place to ensure that only allowable costs are charged to federal grants. As a result, the School charged unallowable expenses to the grant. Recommendation: We recommend the School review the federal award allowable uses and implement a process to ensure that costs are allowable prior to payment. Failure to comply with the federal award allowable uses could lead to noncompliance and future questioned costs. Views of Responsible Officials: See the Corrective Action Plan.