Audit 381947

Finding No. 2025-001 - Activities Allowed or Unallowed and Allowable Costs/Cost Principles - Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name and Assistance Listing Number: Title I Grants to Local Educational Agencies (LEAs) - ALN #84.010 Federal Award Identification Number and Year: 0021-24-4555 2025 Name of Pass-through Entity: New York State Department of Education Criteria According to 2 CFR, Part 200.430(i)(1) charges to Federal awards for salaries and wages must be based on records that accurately reflect the actual work performed, which must, among other things: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition During the year ended June 30, 2025, the Academy had insufficient support for the review and of time and effort spent on the allowable activities related to the Title I grant. Cause Approval signature was not documented on Semi-Annual Time Certification Form. This lack of approval therefore did not demonstrate that any review had been performed over salary allocations using Title I grant revenue. Effect or Potential Effect As a result of the lack of review, the teachers' salaries allocated to the Title I grant may not be accurate. Questioned Costs None Context We selected 8 employees charged to the Title I grant to test for controls over time and effort. The Academy did not have evidence of review of the Title I teachers' time and effort for any of the 8 employees tested. Identification as a Repeat Finding This is not a repeat finding. Recommendation The School should have written documentation for each teacher's time and effort related to allowable activities for Title I grant. The School should also review this time and effort report on a periodic basis and include a review process to ensure the policy is followed. Reporting Views of Responsible Officials We agree with the finding and will develop and implement procedures to address the finding.

Finding No. 2025-002 - Special Tests - Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name and Assistance Listing Number: Title I Grants to Local Educational Agencies (LEAs) - ALN #84.010 Federal Award Identification Number and Year: 0021-24-4555 2025 Name of Pass-through Entity: New York State Department of Education Criteria According to ESEA sections 111 l(h)(l)(C)(iii)(II) and 8101(23), (25) (20 USC 631 l(h)(l)(C)(iii)(II) and 7801(23), (25)), to remove a student from the cohort, a school or LEA must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or LEA must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. A student who is retained in grade, enrolls in a GED program, or leaves school for any other reason may not be counted as having transferred out for the purpose of calculating graduation rate and must remain in the adjusted cohort. Condition During the year ended June 30, 2025, the School had insufficient support for the review and approval of withdrawn students related to Title I grant requirements. Cause Approval signature was not documented on Student Withdrawal Forms for transferred students. For graduated students, there was no approval signature documented on Graduated Students Listing. This lack of approval therefore did not demonstrate that any review had been performed over withdrawn students for Title I grant revenue. Effect or Potential Effect As a result of the lack of review, the number of students claimed for the Title I grant may not be accurate. Questioned Costs None Context We selected 40 transferred and graduated students for the 2024-2025 school year and obtained their withdrawal documentation to test for proper approvals. The Academy did not have evidence of review of 7 students who withdrew in the 2024-2025 school year. Identification as a Repeat Finding This is not a repeat finding. Recommendation The School should have a written documentation for each withdrawn student related to special tests for Title I. The Academy should also review transferred student forms on a periodic basis and include a review process to ensure the policy is followed. Reporting Views of Responsible Officials We agree with the finding and will develop procedures to address the finding.