FAC Explorer

Audit 38901

FY End
2022-06-30
Total Expended
$2.70M
Findings
4
Programs
1
Organization: Friends of Kona Pacific Public Charter School (HI)
Year: 2022 Accepted: 2023-03-30
Auditor: Carbonaro CPAS & Management Group

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42808 2022-002 Material Weakness Yes N
42809 2022-002 Material Weakness Yes N
619250 2022-002 Material Weakness Yes N
619251 2022-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $18,795 Yes 1

Contacts

Name Title Type
Q4KWC3CMQWK3 Michael Kramer Auditee
8083224900 Rozanne Connell Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate: The Organization did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - TOTAL USDA LOANS BLANCE OUTSTANDING AT JUNE 30, 2021 WAS $2,701,450, BORROWING ON USDA LOAN WAS ZERO, PAYMENTS ON USDA LOAN WERE $44,889, TOTAL USDA LOANS BALANCE OUTSTANDING AT JUNE 30, 2022 WAS $2,656,561
Title: Note A. Basis of Presentation Accounting Policies: Note B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate: The Organization did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activities of KUA o Kanaueue (the Organization) under programs of the Federal government for the year ended June 30, 2022.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 Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Title: Note C. Subrecipient Pass Through Awards Accounting Policies: Note B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate: The Organization did not use the de minimis cost rate. No Federal awards were passed through to subrecipients.

Finding Details

Finding 2022-002
Finding 2022-002: Lack of Internal Control over Compliance and Noncompliance with USDA Loan Requirements, USDA Rural Development, Community Facilities Loans and Grants, Award Listing 10.766, Special Tests and Provisions, continuation of 2021-002. Criteria: Government Auditing Standards require adequate internal controls over accounting functions. These internal controls should reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grant agreements that would be material in relation to a federal program being audited may occur and not be detected in the normal course of performing their assigned functions. In accordance with the USDA Letter of Conditions, an adequate reserve is required to be established and properly budgeted for. Condition: During the audit, it was noted the USDA debt service reserve account and balance were not maintained. Cause: Due to a lack of internal controls the reserve account was not established or adequately funded. Potential Effect: Noncompliance with the USDA Letter of Conditions dated March 30, 2011 and with the Special Tests and Provisions of the OMB Compliance Supplement. Questioned Costs: None Recommendation: We recommend establishing and properly funding a reserve bank account and to budget appropriately to maintain the required debt service reserve account balance in accordance with USDA conditions.
Finding 2022-002
Finding 2022-002: Lack of Internal Control over Compliance and Noncompliance with USDA Loan Requirements, USDA Rural Development, Community Facilities Loans and Grants, Award Listing 10.766, Special Tests and Provisions, continuation of 2021-002. Criteria: Government Auditing Standards require adequate internal controls over accounting functions. These internal controls should reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grant agreements that would be material in relation to a federal program being audited may occur and not be detected in the normal course of performing their assigned functions. In accordance with the USDA Letter of Conditions, an adequate reserve is required to be established and properly budgeted for. Condition: During the audit, it was noted the USDA debt service reserve account and balance were not maintained. Cause: Due to a lack of internal controls the reserve account was not established or adequately funded. Potential Effect: Noncompliance with the USDA Letter of Conditions dated March 30, 2011 and with the Special Tests and Provisions of the OMB Compliance Supplement. Questioned Costs: None Recommendation: We recommend establishing and properly funding a reserve bank account and to budget appropriately to maintain the required debt service reserve account balance in accordance with USDA conditions.
Finding 2022-002
Finding 2022-002: Lack of Internal Control over Compliance and Noncompliance with USDA Loan Requirements, USDA Rural Development, Community Facilities Loans and Grants, Award Listing 10.766, Special Tests and Provisions, continuation of 2021-002. Criteria: Government Auditing Standards require adequate internal controls over accounting functions. These internal controls should reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grant agreements that would be material in relation to a federal program being audited may occur and not be detected in the normal course of performing their assigned functions. In accordance with the USDA Letter of Conditions, an adequate reserve is required to be established and properly budgeted for. Condition: During the audit, it was noted the USDA debt service reserve account and balance were not maintained. Cause: Due to a lack of internal controls the reserve account was not established or adequately funded. Potential Effect: Noncompliance with the USDA Letter of Conditions dated March 30, 2011 and with the Special Tests and Provisions of the OMB Compliance Supplement. Questioned Costs: None Recommendation: We recommend establishing and properly funding a reserve bank account and to budget appropriately to maintain the required debt service reserve account balance in accordance with USDA conditions.
Finding 2022-002
Finding 2022-002: Lack of Internal Control over Compliance and Noncompliance with USDA Loan Requirements, USDA Rural Development, Community Facilities Loans and Grants, Award Listing 10.766, Special Tests and Provisions, continuation of 2021-002. Criteria: Government Auditing Standards require adequate internal controls over accounting functions. These internal controls should reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grant agreements that would be material in relation to a federal program being audited may occur and not be detected in the normal course of performing their assigned functions. In accordance with the USDA Letter of Conditions, an adequate reserve is required to be established and properly budgeted for. Condition: During the audit, it was noted the USDA debt service reserve account and balance were not maintained. Cause: Due to a lack of internal controls the reserve account was not established or adequately funded. Potential Effect: Noncompliance with the USDA Letter of Conditions dated March 30, 2011 and with the Special Tests and Provisions of the OMB Compliance Supplement. Questioned Costs: None Recommendation: We recommend establishing and properly funding a reserve bank account and to budget appropriately to maintain the required debt service reserve account balance in accordance with USDA conditions.