Audit 375717

Assistance Listing Number, Federal Agency, and Program Name: Various Federal Award Identification Number and Year: Various Pass-through Entity: Various Finding Type: Material Weakness in internal control over preparing an accurate and complete schedule of expenditures of federal awards in accordance with the Uniform Guidance. Repeat Finding: No Criteria: Per 2 CFR § 200502(a), the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulation, and terms and conditions of federal awards, such as: expenditure/expenses transactions, associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients: the use of loan proceeds under loan and loan guarantee programs: the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution of use of food commodities; the disbursement of amounts entitling the nonfederal entity to an interest subsidy; and the period when insurance is in force. Condition: The initial schedule of federal expenditures (SEFA) did not report expenditures and accruals in accordance with the above regulations. Identification of How Questioned Costs Were Computed: N/A Questioned Costs: None Cause: The School District had balances that did not agree to supporting schedules and proposed certain material adjustments (which were reviewed and approved by management) to adjust the district’s general ledger to the appropriate balances. It is recommended that management review its procedures and controls in place to ensure that the expenditures and accruals reported on the SEFA are complete and accurate. Effect: The Academy’s internal controls were not adequate to create a complete and accurate SEFA, resulting in revisions to the SEFA. Recommendation: We recommend that management review its procedures and controls in place to ensure that parental Involvement spend matches the allocated amount per the budget reports and the supporting documentation are retained and have proper evidence of review. View of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See corrective action plan.