FAC Explorer

Audit 413659

FY End
2025-12-31
Total Expended
$16.04M
Findings
1
Programs
1
Organization: Prichard Committee for Academic Excellence, Inc. (KY)
Year: 2025 Accepted: 2026-09-30
Auditor: MILLER MAYER SULLIVAN STEVENS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1238735 2025-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $339,792 Yes 0

Contacts

Name Title Type
L2D6AJF2S739 Brigitte Blom Auditee
8592339849 Lauren Huston, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (schedule) includes the federal award activity of the Prichard Committee and is presented on the accrual basis of accounting. 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 Prichard Committee, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Prichard Committee.
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.
If allowed by the governmental funding agency, the Prichard Committee has elected to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.
As described in Finding 2025-002 in the Schedule of Findings and Questioned Costs, the organization identified unallowable costs related to the improper allocation of expenses to a federal program. As a result, the organization recorded a payable of $349,687 as of December 31, 2025, representing amounts to be repaid to the grantor for costs deemed unallowable under Uniform Guidance. Of this amount, $167,426 relates to costs allocated and expended during the year ended December 31, 2025, which has been reflected as a reduction of federal expenditures in the accompanying Schedule of Expenditures of Federal Awards for Assistance Listing #84.215J. The remaining $182,260 relates to costs incurred in the prior year ended December 31, 2024. This amount is not included in current year federal expenditures, as the Schedule of Expenditures of Federal Awards presents only current-period activity.

Finding Details

Finding 2025-002
Kentucky's Full-Service Community Schools Program - Assistance Listing No. 84.215J; Grant No. S215J220173; Grant period - Years ended December 31, 2025 and 2024 Condition. Fringe benefit reimbursements for the major program exceeded actual costs incurred, resulting in questioned costs of $349,687. The auditee applied a fixed fringe benefit rate of 30% to salaries charged to the program without reconciling these amounts to actual fringe benefit costs incurred. No periodic true-up process was performed. Criteria. Under 2 CFR 200.403 and 200.431, costs charged to federal awards must be allowable, reasonable, and allocable, and fringe benefits must be based on actual costs incurred or an approved indirect/fringe benefit rate agreement. Cause. The lack of reconciliation controls described in Finding 2025-001 contributed to this condition, as management did not identify that fringe benefit charges exceeded actual costs incurred. Effect. Federal program expenditures and related revenue reimbursements were overstated due to fringe benefit charges exceeding actual costs incurred. This resulted in questioned costs totaling $167,426 for the year ended December 31, 2025 and $182,260 for the year ended December 31, 2024, totaling $349,687. This represents material noncompliance with Uniform Guidance requirements related to allowable and allocable costs and a material weakness in internal control over compliance. Recommendation. We recommend that the auditee charge fringe benefits to federal awards based on actual costs incurred or, alternatively, obtain a formally approved fringe benefit rate agreement and perform required periodic reconciliations to actual costs. Management should implement internal controls to ensure that fringe benefit costs are accurately calculated, properly supported, and consistently allocated to benefiting programs. In addition, reimbursement requests submitted to federal programs should be reviewed to ensure they are supported by actual incurred costs and comply with Uniform Guidance requirements. Finally, management should evaluate prior period charges and consult with the federal awarding agency to determine the appropriate resolution of questioned costs. View of Responsible Officials and Planned Corrective Actions. Management agrees with and will implement corrective action. The following corrective actions will be implemented: strengthening budget monitoring by requiring monthly budget-to-actual reviews for all active grants; standardizing grant allocation procedures through the development and documentation of formal cost allocation methodologies; enhancing review and approval processes by conducting quarterly internal audits of grant expenditures; and improving reconciliation practices by performing monthly reconciliations of each grant account, requiring sign-off by both finance and program managers, and investigating and resolving variances within 10 business days.