FAC Explorer

Audit 365091

FY End
2024-06-30
Total Expended
$755,894
Findings
2
Programs
3
Organization: Spark Academy of Advanced Technologies (NH)
Year: 2024 Accepted: 2025-08-27
Auditor: Nathan Wechsler

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574800 2024-001 Significant Deficiency - I
1151242 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $731,669 Yes 1
84.425 Education Stabilization Fund $13,400 - 0
84.424 Student Support and Academic Enrichment Program $10,825 - 0

Contacts

Name Title Type
QJJBTT4XKRN4 John Tuttle Auditee
6035191966 Samantha Henrichon Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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. De Minimis Rate Used: N Rate Explanation: The organization has not elected to use the 10% de minimis indirect cost rate and does not claim indirect costs under federal awards. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Spark Academy of Advanced Technologies (“the School”) under programs of the federal government for the year ended June 30, 2024. 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 School.
Title: Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: The organization has not elected to use the 10% de minimis indirect cost rate and does not claim indirect costs under federal awards. 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: Program Costs 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. De Minimis Rate Used: N Rate Explanation: The organization has not elected to use the 10% de minimis indirect cost rate and does not claim indirect costs under federal awards. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Major Programs 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. De Minimis Rate Used: N Rate Explanation: The organization has not elected to use the 10% de minimis indirect cost rate and does not claim indirect costs under federal awards. 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: Indirect Costs 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. De Minimis Rate Used: N Rate Explanation: The organization has not elected to use the 10% de minimis indirect cost rate and does not claim indirect costs under federal awards. The School has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2024-001
2024-001- Updated Procurement Policy Federal Agency: U.S. Department of Education Award Name: Charter Schools Program Year: 2024 Assistance Listing Number: 84.282 Compliance: Procurement and Suspension and Debarment Finding Type: Significant deficiency in internal control over compliance Criteria: Management is responsible for having a bid process for contracts entered into with federal funds. It was noted that the School does have a process, however, it is outdated and should be more in line with the federal procurement process. Condition and context: During procurement testing, it was noted that the policy had significantly lower thresholds for procuring contracts than the federal procurement policy. Cause of condition: The School received a large, one-time, federal grant in the prior year. Prior to this the School rarely received any large dollar federal grants. The School had previously never had a need to go through a bid process. Effect of condition: As a result of this condition, the School has a significantly lower threshold than federal standards requires. Although they were in compliance with federal regulations, the School did not follow their set policy for the bid process. Recommendation: It is recommended that the School update their procurement policy to match the federal policy. View of Responsible Officials and Planned Corrective Action: Spark Academy acknowledges that the existing procurement policy contains thresholds significantly lower than the federal procurement standards and has not been updated to reflect the level of federal funding currently received. To correct this issue, the following actions will be taken: 1. Procurement Policy Revision: The procurement policy will be fully revised to incorporate the current federal procurement standards as outlined in 2 CFR Part 200, including appropriate micropurchase, small purchase, and formal procurement thresholds. 2. Board Approval: The updated procurement policy will be presented to the Board of Trustees for review and formal approval. 3. Training and Implementation: Staff responsible for federal purchasing will receive training on the revised procurement policy to ensure full understanding and compliance. 4. Ongoing Monitoring: Management will conduct periodic internal reviews of procurement activities to verify adherence to the updated policy. Page 11 Planned Implementation Date of Corrective Action: September 30, 2025 Person Responsible for Corrective Action: Business Manager
Finding 2024-001
2024-001- Updated Procurement Policy Federal Agency: U.S. Department of Education Award Name: Charter Schools Program Year: 2024 Assistance Listing Number: 84.282 Compliance: Procurement and Suspension and Debarment Finding Type: Significant deficiency in internal control over compliance Criteria: Management is responsible for having a bid process for contracts entered into with federal funds. It was noted that the School does have a process, however, it is outdated and should be more in line with the federal procurement process. Condition and context: During procurement testing, it was noted that the policy had significantly lower thresholds for procuring contracts than the federal procurement policy. Cause of condition: The School received a large, one-time, federal grant in the prior year. Prior to this the School rarely received any large dollar federal grants. The School had previously never had a need to go through a bid process. Effect of condition: As a result of this condition, the School has a significantly lower threshold than federal standards requires. Although they were in compliance with federal regulations, the School did not follow their set policy for the bid process. Recommendation: It is recommended that the School update their procurement policy to match the federal policy. View of Responsible Officials and Planned Corrective Action: Spark Academy acknowledges that the existing procurement policy contains thresholds significantly lower than the federal procurement standards and has not been updated to reflect the level of federal funding currently received. To correct this issue, the following actions will be taken: 1. Procurement Policy Revision: The procurement policy will be fully revised to incorporate the current federal procurement standards as outlined in 2 CFR Part 200, including appropriate micropurchase, small purchase, and formal procurement thresholds. 2. Board Approval: The updated procurement policy will be presented to the Board of Trustees for review and formal approval. 3. Training and Implementation: Staff responsible for federal purchasing will receive training on the revised procurement policy to ensure full understanding and compliance. 4. Ongoing Monitoring: Management will conduct periodic internal reviews of procurement activities to verify adherence to the updated policy. Page 11 Planned Implementation Date of Corrective Action: September 30, 2025 Person Responsible for Corrective Action: Business Manager