Audit 412225

FY End
2024-09-30
Total Expended
$2.36M
Findings
1
Programs
10
Organization: Lead Academy (AL)
Year: 2024 Accepted: 2026-09-25

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1236680 2024-002 Material Weakness Yes N

Contacts

Name Title Type
VAX8E8271WN3 Erik Estill Auditee
3344513220 Patricia Oh Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of LEAD Academy (the “School”) under programs of the federal government for the year ended September 30, 2024. 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 School, it is not intended to and does not present the financial position or changes in net position of the School. Child Nutrition Cluster – Includes awards that assist States in administering food services that provide healthful, nutritious meals to eligible children in public and non-profit private schools, residential child care institutions, and summer recreation programs; and encourage the domestic consumption of nutritious agricultural commodities. Special Education Cluster – Includes awards that ensure that all children with disabilities have available to them a free appropriate public education which emphasizes special education and related services designed to meet their unique needs; ensure that the rights of children with disabilities and their parents or guardians are protected; assist States, localities, educational service agencies and Federal agencies to provide for the education of all children with disabilities; and assess and ensure the effectiveness of efforts to educate children with disabilities. Disability Insurance/SSI Cluster – Includes awards that provide benefits to disabled wage earners and their families in the event the family wage earner becomes disabled. These awards provide payments to financially needy individuals who are aged, blind, or disabled.
The School did not have any loans or loan guarantee programs required to be reported on the Schedule for the fiscal year ended September 30, 2024.
The School did not provide federal funds to subrecipients for the fiscal year ended September 30, 2024.
The amounts reflected in the financial reports submitted to the awarding federal, state and/or pass-through agencies and the Schedule may differ. Some of the factors that may account for any difference include the following: • The School’s fiscal year end may differ from the program’s year end. • Accruals recognized in the Schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period. Fixed asset purchases and the related depreciation charges are recognized as fixed assets in the School’s financial statements and as expenditures in the program financial reports and the Schedule.
The School is also the sub-recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as “pass-through” are considered direct.
The value of non-cash commodities received from the federal government in connection with the donated food program is reflected in the accompanying financial statements. The total assigned value of commodities donated was $31,993 for fiscal year 2024.
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 upon prior experience, the School does not believe that such disallowance, if any, would have a material effect on the financial position of the School. As of the date the financial statements were available to be issued, there were no known material questioned or disallowed costs as a result of grant audits in process or completed.

Finding Details

Finding Type: Significant deficiency Criteria - Per 7 CFR Subpart C - 210.14(b), the school food authority shall limit its net cash resources to an amount that does not exceed its 3-month average expenditures for its nonprofit school food service or such other amount as may be approved by the State agency in accordance with 7 CFR Subpart D - 210.19(a). (This is a repeat of prior year finding 2023-010). Condition - The cumulative net cash resources as of December 31, 2024 totaled $426,397, which exceeded the net cash resource limit by $248,377. Cause - The School accumulated a large net cash resource balance during the COVID-19 pandemic and the USDA extension of the summer feeding program. Effect - The School is not in compliance with 7 CFR Subpart C - 210.14(b). Noncompliance with this guidance exposes the School to the risk of forfeiture of Child Nutrition Program funds. Recommendation - We recommend that management and the School communicate with ALSDE to establish an appropriate plan to use the net cash resources or return of the funds. Questioned costs - None. Management response - See corrective action plan provided by the Head of School.