FAC Explorer

Audit 376759

FY End
2025-06-30
Total Expended
$1.39M
Findings
2
Programs
7
Organization: Steel City Academy, Inc. (IN)
Year: 2025 Accepted: 2025-12-20
Auditor: DONOVAN PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1165861 2025-002 Material Weakness Yes G
1165862 2025-002 Material Weakness Yes G

Programs

ALN Program Spent Major Findings
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $314,287 Yes 0
10.555 NATIONAL SCHOOL LUNCH PROGRAM $164,248 Yes 0
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $115,396 Yes 1
10.553 SCHOOL BREAKFAST PROGRAM $99,445 Yes 0
84.027 SPECIAL EDUCATION_GRANTS TO STATES $27,879 Yes 0
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $25,633 Yes 0
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $9,736 Yes 0

Contacts

Name Title Type
MLN1A25JGN53 Katherine Kirley Auditee
2197501010 Jason Schultz Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Steel City Academy, Inc. (the School) under programs of the federal government for the year ended June 30, 2025. The information in this 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 School, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the School.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The School elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-002
FINDING 2025-002 MAINTENANCE OF EFFORT SIGNIFICANT DEFICIENCY Federal Program: Title I, Part A (84.010) Criteria 2 CFR part 200, Appendix XI, Compliance Supplement 2020, Section 4-84.000-13, states “An LEA may receive funds under an applicable program only if the SEA finds that the combined fiscal effort per student or the aggregate expenditures of the LEA from state and local funds for free public education for the preceding year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding year, unless specifically waved.” Condition The Indiana Department of Education completes the maintenance of effort calculation using the Form 9 report issued by the School, which is a cash-basis report. Review of the School’s Form 9 found the report to be unreliable. Cash basis expenses per the Form 9 were materially different than those per the School’s financial records. Cause The School did not report expenses in line with the guidelines set by the Indiana Department of Education. Effect Maintenance of effort calculations prepared by the Indiana Department of Education could be impacted by incorrect reporting of expense transactions. Recommendation We recommend the School develop internal controls to ensure expenses are properly reported on the Form 9 report in line with guidelines. Views of Responsible Officials The School’s Corrective Action Plan is included on pages 24 to 25.