FAC Explorer

Audit 362410

FY End
2024-08-31
Total Expended
$3.80M
Findings
2
Programs
10
Organization: Academy of Accelerated Learning, INC (TX)
Year: 2024 Accepted: 2025-07-16
Auditor: McConnell & Jones LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571487 2024-004 Significant Deficiency - B
1147929 2024-004 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $2.18M - 0
84.010 Title I Grants to Local Educational Agencies $633,707 Yes 0
10.555 National School Lunch Program $461,378 Yes 1
84.027 Special Education Grants to States $141,940 - 0
10.553 School Breakfast Program $135,975 Yes 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $95,652 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $53,027 - 0
84.365 English Language Acquisition State Grants $23,695 - 0
84.424 Student Support and Academic Enrichment Program $19,370 - 0
84.173 Special Education Preschool Grants $2,497 - 0

Contacts

Name Title Type
M28CJJCRLN89 Brandon Chandler Auditee
7136688237 Shawana Spann Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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 Subpart E of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The accrual basis of accounting is described in Note 1 to the financial statements. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Uniform Guidance Compliance Supplement. De Minimis Rate Used: N Rate Explanation: NONE The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Academy of Accelerated Learning, Inc. (“the Academy”) under programs of the federal government for the year ended August 31, 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 Academy, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Academy.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Subpart E of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The accrual basis of accounting is described in Note 1 to the financial statements. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Uniform Guidance Compliance Supplement. De Minimis Rate Used: N Rate Explanation: NONE Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The accrual basis of accounting is described in Note 1 to the financial statements. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Uniform Guidance Compliance Supplement.
Title: RELATIONSHIP TO FINANCIAL REPORT SUBMITTED TO GRANTOR AGENCIES 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 Subpart E of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The accrual basis of accounting is described in Note 1 to the financial statements. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Uniform Guidance Compliance Supplement. De Minimis Rate Used: N Rate Explanation: NONE Amounts reflected in the financial reports filed with grantor agencies for the programs and the supplementary schedules may not agree because of accruals which would be included in the next report filed with the agencies, matching requirements not included in the Schedule and due to different program year ends.
Title: ELECTION TO USE 10% DE MINIMUS INDIRECT COST RATE 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 Subpart E of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The accrual basis of accounting is described in Note 1 to the financial statements. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Uniform Guidance Compliance Supplement. De Minimis Rate Used: N Rate Explanation: NONE The Academy’s grant agreements do not allow use of indirect cost rate and hence, the Academy did not use 10% de minimum indirect cost rate.
Title: COMMITMENTS AND CONTINGENCIES 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 Subpart E of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The accrual basis of accounting is described in Note 1 to the financial statements. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Uniform Guidance Compliance Supplement. De Minimis Rate Used: N Rate Explanation: NONE Federal grants received by the Academy are subject to review and audit by grantor agencies. The Academy’s management believes that the results of such audits will not have a material effect on the Schedule.

Finding Details

Finding 2024-004
Approval of Allowable Costs (Significant Deficiency) Federal Award #’s: 10.553, 10.555 Child Nutrition Cluster Federal Award Years: Multiple Federal Agencies: US Department of Agriculture Passthrough Agency: Texas State Department of Agriculture Compliance Requirement: Allowable Costs Criteria: According to 2 CFR 200.303 (a) the recipient of federal awards must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Review and approval controls designed to ensure accuracy and adequate segregation of duties are an essential component of effective internal controls over costs. Condition/Context: During our testing we noted 2 out of 9 nonpayroll costs tested, totaling $79,106, were not separately reviewed and approved by the Department Chair and/or Superintendent. The costs were accurate and supported by invoices. However, the review and approval of the costs by someone other than the person entering the payment was not supported. Cause: The Academy did not effectively implement existing procedures for the separate review and approval of costs. Effect: The absence of proper approval increases the risk of unauthorized or inappropriate expenses being paid, which could result in loss of federal grant funding. Recommendation: The Academy implements procedures to ensure the effective implementation of established controls. We recommend that the Academy reinforce the importance of the expense approval process through additional training for relevant staff and reiterate the importance of segregation of duties in this process.
Finding 2024-004
Approval of Allowable Costs (Significant Deficiency) Federal Award #’s: 10.553, 10.555 Child Nutrition Cluster Federal Award Years: Multiple Federal Agencies: US Department of Agriculture Passthrough Agency: Texas State Department of Agriculture Compliance Requirement: Allowable Costs Criteria: According to 2 CFR 200.303 (a) the recipient of federal awards must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Review and approval controls designed to ensure accuracy and adequate segregation of duties are an essential component of effective internal controls over costs. Condition/Context: During our testing we noted 2 out of 9 nonpayroll costs tested, totaling $79,106, were not separately reviewed and approved by the Department Chair and/or Superintendent. The costs were accurate and supported by invoices. However, the review and approval of the costs by someone other than the person entering the payment was not supported. Cause: The Academy did not effectively implement existing procedures for the separate review and approval of costs. Effect: The absence of proper approval increases the risk of unauthorized or inappropriate expenses being paid, which could result in loss of federal grant funding. Recommendation: The Academy implements procedures to ensure the effective implementation of established controls. We recommend that the Academy reinforce the importance of the expense approval process through additional training for relevant staff and reiterate the importance of segregation of duties in this process.