FAC Explorer

Audit 398682

FY End
2025-06-30
Total Expended
$1.52M
Findings
3
Programs
6
Organization: Discovery Academy of Lake Alfred, Inc. (FL)
Year: 2025 Accepted: 2026-04-14
Auditor: GARCIA SANTA MARIA DE ARMAS TRUJILLO PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1206605 2025-001 Material Weakness Yes N
1206606 2025-001 Material Weakness Yes N
1206607 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $230,280 Yes 0
84.425 EDUCATION STABILIZATION FUND $220,559 Yes 0
10.553 SCHOOL BREAKFAST PROGRAM $188,484 Yes 1
84.027 SPECIAL EDUCATION_GRANTS TO STATES $91,912 Yes 0
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $68,366 Yes 0
10.555 NATIONAL SCHOOL LUNCH PROGRAM $58,503 Yes 1

Contacts

Name Title Type
QMBLU1PQJ3F4 Kevin Warren Auditee
8632955955 Alex Trujillo Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal programs of Discovery Academy of Lake Alfred, Inc. (the School) for the year ended June 30, 2025. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Schools. 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 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. Therefore, the amount of expenditures presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. The School has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Grant monies received and disbursed by the School are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based on prior experience, the School does not believe that such disallowances, if any, would have a material effect on the financial position of the School. As of June 30, 2025, management is not aware of any material questioned or disallowed costs as a result of grant audits in process or completed.
The School records expenditures of federal programs when paid in cash to a pass through entity. For the year ended June 30, 2025, the School did not passthrough any funds to subrecipients as reflected in the Schedule.
Subsequent events have been evaluated through March 31, 2026, which is the date the financial statements were available to be issued. There were no events of this nature requiring recording or disclosure in the Schedule for the year ended June 30, 2025.

Finding Details

Finding 2025-001
Federal Program: Child Nutrition Cluster (Assistance Listing Numbers 10.555 and 10.553) Compliance Requirement: Special tests and Provisions – Nonprofit School Food Service Account Type of Finding: Noncompliance Criteria Federal regulations require that a nonprofit school food service account operate on a nonprofit basis. In accordance with 7 CFR 210.14(b), net cash resources may not exceed three months of average expenditures unless the school food authority obtains approval from the state agency to maintain net cash resources in excess of allowable limits. Condition At June 30, 2025, the School reported net cash resources in excess of three months of average expenditures and had not obtained approval from the state agency to maintain the excess as of the date of this report. The state agency requested submission of a plan to reduce the excess; however, the plan had not been submitted. Cause The School did not have procedures in place to ensure required follow-up actions were completed after state review of the statement of financial performance. Turnover in personnel and lack of clearly defined roles and responsibilities contributed to the required actions not being completed. Effect Failure to submit a plan and obtain state agency approval to maintain excess net cash resources resulted in noncompliance with requirements related to the nonprofit operation of the food service program. Questioned Costs There are no questioned costs related to this finding. Recommendation We recommend that the School prepare and submit a plan to the state agency to address excess net cash resources and obtain the required approval. Additionally, the School should implement procedures to monitor net cash resource limits and ensure timely completion of required follow-up actions. Views of Responsible Officials Management acknowledges the finding related to net cash resources exceeding allowable limits. Management is in the process of addressing this matter and has developed a corrective action plan to ensure compliance with program requirements. See the Corrective Action Plan for additional details.