Audit 354871

FY End

2024-06-30

Total Expended

$2.12M

Findings

2

Programs

1

Organization: Pyramid Learning Corp. (PR)

Year: 2024 Accepted: 2025-04-29

Auditor: Rrc CPA Group Psc

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
556176	2024-001	Significant Deficiency	Yes	L
1132618	2024-001	Significant Deficiency	Yes	L

ALN	Program	Spent	Major	Findings
84.287	Twenty-First Century Community Learning Centers	$2.12M	Yes	1

Contacts

Name	Title	Type
NTK5P78SUML4	Linnette Martinez	Auditee
7872477334	Eric Rosaly	Auditor
No contacts on file

Notes to SEFA

Title: Note A Basis of Presentation Accounting Policies: Significant Accounting Policies Expenditures reported on the schedule are accounted for on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where-in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Due to the grant contract agreement, the Organization can not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grants activity of this Organization, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the OMB Uniform Guidance. 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 B - Summary of Significant Accounting Policies Accounting Policies: Significant Accounting Policies Expenditures reported on the schedule are accounted for on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where-in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Due to the grant contract agreement, the Organization can not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are accounted for on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where-in certain types of expenditures are not allowable or are limited as to reimbursement. Due to the grant contract agreement, the Organization can not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

FINDING NO. 2024-001 Federal programs FINANCIAL STATEMENTS All federal financial assistance programs Category Internal control Condition found The Organization accounted for its activities based on the services provided, which are educational services. During our financial and compliance audit procedures for the fiscal year ending June 30, 2024, we noted the following conditions related to the accounting procedures and financial reporting practices of the Organization: a. Accounting and interim financial reports are not executed on a current (month-to-month) basis. Accounting journals, general ledger and interim financial reports, such as Balance Sheet, Statement of Activities and Bank Reconciliations, monthly analysis of certain accounts are executed after the end of the related accounting year. Criteria 2 CFR 200.302 (b) (2), (4), (5) and (7) establish that the financial management system of each non Federal entity must provide for the following: i. Cause Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.327 Financial reporting and 200.328 Monitoring and reporting program performance. Contracted outsource for the general accounting of the institution have been unable to prepare the monthly accounting and the related interim financial reports on a current basis. Effect This weakness in the accounting of the institution requires extra efforts from the administration to compensate for the lack of current accountability with additional alternative measures and procedures. Noncompliance with the above-mentioned requirements could lead to administrative actions by the grantor. Questioned Costs NoneIdentification as a Repeated Finding Yes Recommendations The Organization should enforce its policies and procedures in order to accurately maintain its financial information, and on a timely basis, assuring that they reflect its assets and liabilities, and to maintain an appropriate control over its revenues and the amounts expended, which will allow a proper management and monitoring of operations. These policies and procedures should be enforced to consider the following: • Establish monthly and year end closing procedures. • Prepare monthly or quarterly financial reports for management evaluation and analysis. Views of Responsible Officials The Organization agrees with the finding. Executed actions have substantially improved their year-end closing procedures. They contracted a new accounting firm to improve their accounting and the interim financial reporting.

Finding 2024-001

FINDING NO. 2024-001 Federal programs FINANCIAL STATEMENTS All federal financial assistance programs Category Internal control Condition found The Organization accounted for its activities based on the services provided, which are educational services. During our financial and compliance audit procedures for the fiscal year ending June 30, 2024, we noted the following conditions related to the accounting procedures and financial reporting practices of the Organization: a. Accounting and interim financial reports are not executed on a current (month-to-month) basis. Accounting journals, general ledger and interim financial reports, such as Balance Sheet, Statement of Activities and Bank Reconciliations, monthly analysis of certain accounts are executed after the end of the related accounting year. Criteria 2 CFR 200.302 (b) (2), (4), (5) and (7) establish that the financial management system of each non Federal entity must provide for the following: i. Cause Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.327 Financial reporting and 200.328 Monitoring and reporting program performance. Contracted outsource for the general accounting of the institution have been unable to prepare the monthly accounting and the related interim financial reports on a current basis. Effect This weakness in the accounting of the institution requires extra efforts from the administration to compensate for the lack of current accountability with additional alternative measures and procedures. Noncompliance with the above-mentioned requirements could lead to administrative actions by the grantor. Questioned Costs NoneIdentification as a Repeated Finding Yes Recommendations The Organization should enforce its policies and procedures in order to accurately maintain its financial information, and on a timely basis, assuring that they reflect its assets and liabilities, and to maintain an appropriate control over its revenues and the amounts expended, which will allow a proper management and monitoring of operations. These policies and procedures should be enforced to consider the following: • Establish monthly and year end closing procedures. • Prepare monthly or quarterly financial reports for management evaluation and analysis. Views of Responsible Officials The Organization agrees with the finding. Executed actions have substantially improved their year-end closing procedures. They contracted a new accounting firm to improve their accounting and the interim financial reporting.