FAC Explorer

Audit 38562

FY End
2022-08-31
Total Expended
$1.99M
Findings
4
Programs
10
Organization: East Waco Innovative School Development, Inc. Charter Holder for Rapo (TX)
Year: 2022 Accepted: 2023-01-29
Auditor: Armanino

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42422 2022-001 Significant Deficiency - A
42423 2022-001 Significant Deficiency - A
618864 2022-001 Significant Deficiency - A
618865 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $841,575 Yes 1
10.555 National School Lunch Program $491,041 - 0
84.010 Title I Grants to Local Educational Agencies $277,943 - 0
84.027 Special Education_grants to States $119,823 - 0
10.553 School Breakfast Program $101,531 - 0
10.565 Commodity Supplemental Food Program $47,410 - 0
84.367 Improving Teacher Quality State Grants $39,478 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $31,666 - 0
84.424 Student Support and Academic Enrichment Program $22,631 - 0
84.173 Special Education_preschool Grants $957 - 0

Contacts

Name Title Type
FTKTC2UNYAD8 Katrina Carmean Auditee
2547548000 Kathy Ferguson Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of East Waco Innovative School Development, Inc. (Charter Holder for Rapoport Academy Public School) (the "School") under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance withthe 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, or cash flows of theSchool.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 limited as to reimbursement. Passthrough entity identifying numbers are presented where available and applicable. For all federal programs, the School used the net asset classes and codes specified by the Texas Education Agency in the Module 3: Charter Schools - Financial Accounting and Reporting Nonprofit Chart of Accounts, Nonprofit Charter School Chart of Accounts. Net assets with donor restrictions are used to account for resources restricted to or designated for specific purposes by agrantor. Federal and state financial assistance is generally accounted for in net assets with donor restrictions.The total expenditures of federal awards of $1,990,023 reported on the Schedule do not agree to the total federal awards revenue of $1,911,417 reported on the statement of activities for the year ended August 31, 2022. During the year ended August 31, 2021, the School incorrectly submitted for reimbursement $78,606 in excess of qualifying expenditures. Correspondingly, the Schoolreduced the amount of ESSER expenditures submitted for reimbursement for the year ended August 31, 2022 by $78,606 according to the recommendation of TEA. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
SECTION III - SUMMARY OF FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding number: 2022-001 Assistance Listing number: 84.425U Assistance Listing title: ARP ESSER Federal award identification number and year: 21528001161802 2021 Name of federal agency: U.S. Department of Education Name of pass-through entity: Texas Education Agency Repeat finding: No Criteria: The School should only request funds for reimbursement that relate to qualifying expenditures. Condition: The School utilizes a software to track all allowable expenses incurred during the period for reimbursement. Cause: During the year ended August 31, 2021, the School incorrectly submitted for reimbursement $78,606 in excess of qualifying expenditures. Possible effect: The School submitted for reimbursement and recognized federal awards revenue in excess of qualifying expenditures for the year ended August 31, 2021. Correspondingly, the School reduced the amount of expenditures submitted for reimbursement for the year ended August 31, 2022. Questioned cost: No questioned costs requiring disclosure. Recommendation: We recommend that management perform a detailed review of expenditures before submitting for reimbursement to ensure that all expenditures submitted are allowable. Views of responsible officials: The School agrees with the above finding.
Finding 2022-001
SECTION III - SUMMARY OF FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding number: 2022-001 Assistance Listing number: 84.425U Assistance Listing title: ARP ESSER Federal award identification number and year: 21528001161802 2021 Name of federal agency: U.S. Department of Education Name of pass-through entity: Texas Education Agency Repeat finding: No Criteria: The School should only request funds for reimbursement that relate to qualifying expenditures. Condition: The School utilizes a software to track all allowable expenses incurred during the period for reimbursement. Cause: During the year ended August 31, 2021, the School incorrectly submitted for reimbursement $78,606 in excess of qualifying expenditures. Possible effect: The School submitted for reimbursement and recognized federal awards revenue in excess of qualifying expenditures for the year ended August 31, 2021. Correspondingly, the School reduced the amount of expenditures submitted for reimbursement for the year ended August 31, 2022. Questioned cost: No questioned costs requiring disclosure. Recommendation: We recommend that management perform a detailed review of expenditures before submitting for reimbursement to ensure that all expenditures submitted are allowable. Views of responsible officials: The School agrees with the above finding.
Finding 2022-001
SECTION III - SUMMARY OF FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding number: 2022-001 Assistance Listing number: 84.425U Assistance Listing title: ARP ESSER Federal award identification number and year: 21528001161802 2021 Name of federal agency: U.S. Department of Education Name of pass-through entity: Texas Education Agency Repeat finding: No Criteria: The School should only request funds for reimbursement that relate to qualifying expenditures. Condition: The School utilizes a software to track all allowable expenses incurred during the period for reimbursement. Cause: During the year ended August 31, 2021, the School incorrectly submitted for reimbursement $78,606 in excess of qualifying expenditures. Possible effect: The School submitted for reimbursement and recognized federal awards revenue in excess of qualifying expenditures for the year ended August 31, 2021. Correspondingly, the School reduced the amount of expenditures submitted for reimbursement for the year ended August 31, 2022. Questioned cost: No questioned costs requiring disclosure. Recommendation: We recommend that management perform a detailed review of expenditures before submitting for reimbursement to ensure that all expenditures submitted are allowable. Views of responsible officials: The School agrees with the above finding.
Finding 2022-001
SECTION III - SUMMARY OF FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding number: 2022-001 Assistance Listing number: 84.425U Assistance Listing title: ARP ESSER Federal award identification number and year: 21528001161802 2021 Name of federal agency: U.S. Department of Education Name of pass-through entity: Texas Education Agency Repeat finding: No Criteria: The School should only request funds for reimbursement that relate to qualifying expenditures. Condition: The School utilizes a software to track all allowable expenses incurred during the period for reimbursement. Cause: During the year ended August 31, 2021, the School incorrectly submitted for reimbursement $78,606 in excess of qualifying expenditures. Possible effect: The School submitted for reimbursement and recognized federal awards revenue in excess of qualifying expenditures for the year ended August 31, 2021. Correspondingly, the School reduced the amount of expenditures submitted for reimbursement for the year ended August 31, 2022. Questioned cost: No questioned costs requiring disclosure. Recommendation: We recommend that management perform a detailed review of expenditures before submitting for reimbursement to ensure that all expenditures submitted are allowable. Views of responsible officials: The School agrees with the above finding.