FAC Explorer

Audit 356269

FY End
2024-06-30
Total Expended
$1.31M
Findings
4
Programs
1
Organization: Distinctive Schools (IL)
Year: 2024 Accepted: 2025-05-14
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560361 2024-001 Significant Deficiency - I
560362 2024-002 Significant Deficiency - AB
1136803 2024-001 Significant Deficiency - I
1136804 2024-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.351 Arts in Education $1.31M Yes 2

Contacts

Name Title Type
MHXVRKMN3F64 Elizabeth Winke Auditee
3123324998 Chad Porter Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Distinctive Schools (the “Organization”) under programs of the federal government for the year ended June 30, 2024. The information in the 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented when applicable and available. The Organization has elected to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. INSURANCE Insurance coverage for the year ended June 30, 2024 was as follows: Commercial general liability $1,000,000 Commercial property liability $1,067,503 Worker’s compensation $1,000,000 There were no federal funds expended for insurance during the year ended June 30, 2024. NON‐CASH ASSISTANCE The Organization did not receive any non‐cash federal awards in the form of commodities during the year ended June 30, 2024. FEDERAL AWARDS IN THE FORM OF LOANS / LOAN GUARANTEES / INTEREST SUBSIDIES There were no federal awards expended in the form of loans, loan guarantees, or interest subsidies at June 30, 2024. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Finding Number: 2024‐001 Procurement Finding Repeat Finding: No Questioned Costs: None Funding Agency: Department of Education AL Number: 84.351A Award Year: 10/1/2023 – 9/30/2024 Condition: The Organization does not have a procurement policy that follows the federal regulations. Criteria: The Organization should follow the Uniform Guidance requirement 2 CFR 200.318(a), which requires the Organization to maintain and use documented procedures for procurement transactions under Federal awards that are consistent with the Uniform Guidance procurement standards. Cause: The Organization’s existing procurement standards do not align with federal regulations. This is the first year the Organization has a federal program. Effect: The Organization was not in compliance with Uniform Guidance requirements, resulting in a significant deficiency in internal control over compliance. Recommendations: We recommend that the Organization update their procurement standards to align with what is required by the Uniform Guidance. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan.
Finding 2024-002
Repeat Finding: No Questioned Costs: None Funding Agency: Department of Education AL Number: 84.351A Award Year: 10/1/2023 – 9/30/2024 Condition: The payroll distribution records did not reasonably reflect the total activity of employees. Criteria: The Organization should follow the Uniform Guidance requirement 2 CFR 200.430(i), which requires the Organization to charge the federal awards for salaries and wages must be based on records that accurately reflect the work performed, budget estimates alone do not qualify as support for charges to Federal awards. Cause: The Organization utilized budget estimates alone to calculate the salaries and wages for charges to Federal awards. This is the first year the Organization has a federal program. Effect: The Organization was not in compliance with Uniform Guidance requirements, resulting in a significant deficiency in internal control over compliance. Recommendations: We recommend that the Organization update the estimates procedures to align with what is required by the Uniform Guidance. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan.
Finding 2024-001
Finding Number: 2024‐001 Procurement Finding Repeat Finding: No Questioned Costs: None Funding Agency: Department of Education AL Number: 84.351A Award Year: 10/1/2023 – 9/30/2024 Condition: The Organization does not have a procurement policy that follows the federal regulations. Criteria: The Organization should follow the Uniform Guidance requirement 2 CFR 200.318(a), which requires the Organization to maintain and use documented procedures for procurement transactions under Federal awards that are consistent with the Uniform Guidance procurement standards. Cause: The Organization’s existing procurement standards do not align with federal regulations. This is the first year the Organization has a federal program. Effect: The Organization was not in compliance with Uniform Guidance requirements, resulting in a significant deficiency in internal control over compliance. Recommendations: We recommend that the Organization update their procurement standards to align with what is required by the Uniform Guidance. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan.
Finding 2024-002
Repeat Finding: No Questioned Costs: None Funding Agency: Department of Education AL Number: 84.351A Award Year: 10/1/2023 – 9/30/2024 Condition: The payroll distribution records did not reasonably reflect the total activity of employees. Criteria: The Organization should follow the Uniform Guidance requirement 2 CFR 200.430(i), which requires the Organization to charge the federal awards for salaries and wages must be based on records that accurately reflect the work performed, budget estimates alone do not qualify as support for charges to Federal awards. Cause: The Organization utilized budget estimates alone to calculate the salaries and wages for charges to Federal awards. This is the first year the Organization has a federal program. Effect: The Organization was not in compliance with Uniform Guidance requirements, resulting in a significant deficiency in internal control over compliance. Recommendations: We recommend that the Organization update the estimates procedures to align with what is required by the Uniform Guidance. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan.