Audit 397494

FY End

2025-06-30

Total Expended

$2.76M

Findings

1

Programs

1

Organization: ILEARN SCHOOLS, INC. (NJ)

Year: 2025 Accepted: 2026-04-02

Auditor: GALLEROS ROBINSON CERTIFIED PUBLIC ACCOUNTANTS LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1205758	2025-002	Material Weakness	Yes	C

ALN	Program	Spent	Major	Findings
84.282	CHARTER SCHOOLS	$2.76M	Yes	1

Contacts

Name	Title	Type
LBTTVLB5HL64	Mustafa Coban	Auditee
2017739140	Leonora Galleros	Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of iLearn Schools, Inc. (the “Organization”), which is the auditee for purposes of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Organization issues consolidated financial statements that also include a related supporting organization and two single‑member limited liability companies for which the Organization is the sole member. These affiliates were evaluated and determined not to have expended or administered federal awards during the year ended June 30, 2025; accordingly, there are no federal expenditures of these affiliates included in the Schedule. All federal awards received directly from federal agencies, or indirectly as pass‑through awards from other governmental entities, by the Organization are included in the accompanying Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2025-002

Finding 2025-002 – Indirect Cost Reimbursement Noncompliance with Federal Requirement Program: ALN # 84.282M Charter Schools Program Criteria or Specific Requirements In accordance with: •2 CFR §200.403, costs charged to federal awards must be allowable and based on actual activity; •2 CFR §200.414, indirect costs must be calculated by applying the approved rate to actual direct costs incurred; and •2 CFR §200.305(b), under the reimbursement method, federal funds must be drawn only for costs incurred. Condition The Organization requested and received $130,000 of indirect cost reimbursement during the fiscal year ended June 30, 2025. However, only $44,575 was supported by actual allowable direct costs incurred during the eligible period April 1, 2025 to June 30, 2025. The excess amount of $85,425 relates to expenditures applicable to a subsequent period. During the audit, management recorded this amount as a grant advance (liability) and did not recognize it as revenue or expense in the current year. Cause Use of budgeted amounts and lack of review controls. Effect Reimbursement requests exceeded allowable costs incurred during the period, resulting in noncompliance. Questioned Costs None, the excess was adjusted to a liability account. Context This exception was noted in 1 of 1 sample selected of indirect cost claims during the period. Recommendation We recommend that the Organization design and implement controls to ensure reimbursements are reviewed and based on actual costs. Views of Responsible Officials and Corrective Action Plan iLearn Schools, Inc. notes that the excess reimbursement of $85,425 was identified, properly recorded as a grant advance liability, and not recognized as revenue or expense in the current year. Going forward, all reimbursement requests will be based on actual allowable direct costs incurred. Management will establish written procedures for indirect cost recovery, implement a formal review and reconciliation process prior to submission, and provide staff training on Uniform Guidance requirements. These corrective actions will be in place for the fiscal year ending June 30, 2026.