This finding impacts the reporting compliance requirement for the major program, Assistance Listing Number 84.282, Charter Schools, funded by the U.S. Department of Education and passed through by the State of Rhode Island, Department of Education (RIDE). Criteria: Per the Immigration Reform and Control Act of 1986, employers must complete Form I- 9 for each individual hired for employment in the United States. The form must be completed within three business days of the employee’s start date and retained in accordance with Federal regulations. The Internal Revenue Service requires all employees to submit a properly completed Form W-4 to ensure accurate income tax withholding. Condition: During testing of twenty-five employee files, we identified eleven instances where Form I-9s were either missing or not properly completed and three instances where Form W-4s were either missing or not properly completed. Specifically: • Two files had no Form I-9s or Form W-4s on record. • Nine files contained Form I-9s with missing required fields or lacked signatures. • One file contained a Form W-4 with missing required fields or lacked signatures. Cause: The School does not have adequate internal controls to ensure consistent completion and retention of Form I-9s and Form W-4s during the hiring process. Effect: Incomplete or missing employment documentation may result in non-compliance with Federal regulations, potentially subjecting the School to penalties or fines and increasing the risk of tax withholding errors. Questioned Costs: There were no questioned costs as a result of the material weakness. Was the finding a repeat of a finding in the immediately prior year?: No Recommendation: AAFCPAs recommends the School implement a standardized checklist and conduct periodic internal reviews of onboarding documentation to ensure all required forms are properly completed and retained in accordance with Federal regulations. Management Response: The School acknowledges the exceptions noted during the audit. We recognize the importance of maintaining complete and accurate employment documentation in compliance with Federal regulations. Due to the transition from a very part-time to primarily full-time HR position, some gaps in process consistency occurred. To address this, the School is implementing a standardized onboarding checklist; all personnel folders will now include a printed version to ensure required forms, including Form I-9 and Form W-4, are completed in full at the time of hire. In addition, periodic internal reviews of personnel files will be conducted to verify ongoing compliance. HR staff will also receive additional training to reinforce proper documentation procedures and retention requirements. We are committed to strengthening internal controls and ensuring full compliance moving forward.
Annual Performance Report This finding impacts the reporting compliance requirement for the major program, Assistance Listing Numbers 84.425D, 84.425U, and 84.425W, COVID-19 - Education Stabilization Fund, funded by the U.S. Department of Education and passed through by RIDE. Criteria: The School must follow the monitoring and reporting program performance requirements set out in the Uniform Guidance Section 200.239. The School must submit an annual performance report (OMB. No. 1810-0749) for the Elementary and Secondary School Emergency Relief (ESSER) funding with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory/reservations. The expenditures disclosed on the report must match the expenditures stated in the Schedule of Expenditures of Federal Awards (SEFA). Condition: Upon reviewing the ESSER annual performance reports submitted by the School, it was noted that the total ESSER expenditures reported within the annual performance report did not agree back to the ESSER expenditures recorded on the SEFA for the year ended June 30, 2024, by $29,540. Cause: The School combined non-ESSER expenditures with ESSER expenditures in the annual performance report for the year ended June 30, 2024. Effect: Incorrect expenditures were reported on the annual performance report for the year ended June 30, 2024, by approximately $29,540. This non-compliance with the Uniform Guidance requirement could potentially impact future Federal funding. Questioned Costs: There were no questioned costs as a result of the significant deficiency. Recommendation: The School should follow their internal controls as intended to ensure the annual performance reports agree back to the SEFA for applicable reporting periods. Was the finding a repeat of a finding in the immediately prior year?: No Management’s Response: During the audit, it was discovered that the fiscal year 2023 ESSER Data Collection Report was filed with ESSSER III information that included amounts reported on the fiscal year 2024 SEFA from ESSER III. Management acknowledges this and has taken measures to ensure that all Federal reports will be filed in compliance with and in agreement by program as reported on the SEFA in the future.
Annual Performance Report This finding impacts the reporting compliance requirement for the major program, Assistance Listing Numbers 84.425D, 84.425U, and 84.425W, COVID-19 - Education Stabilization Fund, funded by the U.S. Department of Education and passed through by RIDE. Criteria: The School must follow the monitoring and reporting program performance requirements set out in the Uniform Guidance Section 200.239. The School must submit an annual performance report (OMB. No. 1810-0749) for the Elementary and Secondary School Emergency Relief (ESSER) funding with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory/reservations. The expenditures disclosed on the report must match the expenditures stated in the Schedule of Expenditures of Federal Awards (SEFA). Condition: Upon reviewing the ESSER annual performance reports submitted by the School, it was noted that the total ESSER expenditures reported within the annual performance report did not agree back to the ESSER expenditures recorded on the SEFA for the year ended June 30, 2024, by $29,540. Cause: The School combined non-ESSER expenditures with ESSER expenditures in the annual performance report for the year ended June 30, 2024. Effect: Incorrect expenditures were reported on the annual performance report for the year ended June 30, 2024, by approximately $29,540. This non-compliance with the Uniform Guidance requirement could potentially impact future Federal funding. Questioned Costs: There were no questioned costs as a result of the significant deficiency. Recommendation: The School should follow their internal controls as intended to ensure the annual performance reports agree back to the SEFA for applicable reporting periods. Was the finding a repeat of a finding in the immediately prior year?: No Management’s Response: During the audit, it was discovered that the fiscal year 2023 ESSER Data Collection Report was filed with ESSSER III information that included amounts reported on the fiscal year 2024 SEFA from ESSER III. Management acknowledges this and has taken measures to ensure that all Federal reports will be filed in compliance with and in agreement by program as reported on the SEFA in the future.
Annual Performance Report This finding impacts the reporting compliance requirement for the major program, Assistance Listing Numbers 84.425D, 84.425U, and 84.425W, COVID-19 - Education Stabilization Fund, funded by the U.S. Department of Education and passed through by RIDE. Criteria: The School must follow the monitoring and reporting program performance requirements set out in the Uniform Guidance Section 200.239. The School must submit an annual performance report (OMB. No. 1810-0749) for the Elementary and Secondary School Emergency Relief (ESSER) funding with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory/reservations. The expenditures disclosed on the report must match the expenditures stated in the Schedule of Expenditures of Federal Awards (SEFA). Condition: Upon reviewing the ESSER annual performance reports submitted by the School, it was noted that the total ESSER expenditures reported within the annual performance report did not agree back to the ESSER expenditures recorded on the SEFA for the year ended June 30, 2024, by $29,540. Cause: The School combined non-ESSER expenditures with ESSER expenditures in the annual performance report for the year ended June 30, 2024. Effect: Incorrect expenditures were reported on the annual performance report for the year ended June 30, 2024, by approximately $29,540. This non-compliance with the Uniform Guidance requirement could potentially impact future Federal funding. Questioned Costs: There were no questioned costs as a result of the significant deficiency. Recommendation: The School should follow their internal controls as intended to ensure the annual performance reports agree back to the SEFA for applicable reporting periods. Was the finding a repeat of a finding in the immediately prior year?: No Management’s Response: During the audit, it was discovered that the fiscal year 2023 ESSER Data Collection Report was filed with ESSSER III information that included amounts reported on the fiscal year 2024 SEFA from ESSER III. Management acknowledges this and has taken measures to ensure that all Federal reports will be filed in compliance with and in agreement by program as reported on the SEFA in the future.