Audit 47308

FY End
2022-06-30
Total Expended
$1.11M
Findings
8
Programs
8
Organization: Rivherhead Charter School (NY)
Year: 2022 Accepted: 2023-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
48887 2022-001 Significant Deficiency - L
48888 2022-002 Significant Deficiency - N
48889 2022-001 Significant Deficiency - L
48890 2022-002 Significant Deficiency - N
625329 2022-001 Significant Deficiency - L
625330 2022-002 Significant Deficiency - N
625331 2022-001 Significant Deficiency - L
625332 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $429,802 Yes 2
84.425 Education Stabilization Fund $269,785 Yes 0
10.553 School Breakfast Program $229,351 Yes 2
84.010 Title I Grants to Local Educational Agencies $83,825 - 0
84.358 Rural Education $43,151 - 0
84.365 English Language Acquisition State Grants $34,352 - 0
84.367 Improving Teacher Quality State Grants $14,561 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0

Contacts

Name Title Type
WVFGYLVC5K61 Nicola Graham Auditee
6313695800 Ken Cerini Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. Generally accepted accounting principles differ from the policies used in preparing the Schedule in that generally accepted accounting principles require that revenue be recognized when services are performed, rather than when payment is received for performing such services. 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. Revenue received from the national school lunch and breakfast programs are based upon the number of free and reduced-price meals served. Revenue received in excess of actual costs are restricted for future expenditures within these programs. As of June 30, 2022, the School had $175,909 of restricted net assets associated with these programs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During year ended June 30, 2022, the School had no sub-recipients.
Title: NONCASH ASSISTANCE AND OTHER Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. Generally accepted accounting principles differ from the policies used in preparing the Schedule in that generally accepted accounting principles require that revenue be recognized when services are performed, rather than when payment is received for performing such services. 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. Revenue received from the national school lunch and breakfast programs are based upon the number of free and reduced-price meals served. Revenue received in excess of actual costs are restricted for future expenditures within these programs. As of June 30, 2022, the School had $175,909 of restricted net assets associated with these programs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School did not receive any non cash assistance, federal loans, or federally funded insurance during the year ended June 30, 2022.

Finding Details

Reporting 2022-001 Significant Deficiency in Internal Control over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During our audit of the School's major programs, we detected certain deficiencies in internal control over compliance. The School submitted vouchers for September 2021 and October 2021 late. The submission exceeded the required 60 days following the last day of the month covered by the claim. The September 2021 voucher could not be accessed and verified by auditors. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim. Cause: The School lunch director resigned from the School during September 2021 as such the director did not communicate to the management team, that the member?s credentials were about to expire. The credentials lapsed and obtaining new credentials took a significant amount of time as a result, the school lunch claim reimbursement was delayed. Effect: Because of lack of supporting documentation, the report submitted was unable to be verified and the reporting deadline was not met. Auditors? Recommendation: Management should maintain a checklist of all specific due dates associated with Uniform Guidance (?UG?) compliance, including credential renewals, voucher submissions, UG report due date, and other reporting requirements. Management Response: Management is aware of the reporting deadlines associated with voucher claims. Unfortunately, a staff member left the School and failed to file the annual renewal report, which resulted in the School being locked out of the vouchering system. The School immediately filed to renew but due to the time it took for the renewal process the September and October vouchers were filed beyond the reporting deadline. This has been rectified and procedures have been implemented whereby the School?s CFO reviews the renewal application to ensure timely filing.
Special Test and Provision 2022-002 Significant Deficiency in Internal Control Over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During the audit of the School's, we noted that the School is maintaining excess reserve levels without an appropriately approved spending plan in place. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School should not maintain more than 90 days of unspent food program funds. The School should have a plan in place on how such excess funds will be utilized. The plan should be approved by the funding source. Cause: The School's management was unaware of the requirement with respect to excess reserve funds. Effect: The School has a restricted fund balance of $175,909 which is in excess of a 90 day reserve level by $13,379. The school has no approved plan of how utilize these funds in the near future. Auditors? Recommendation: Management should perform quarterly reviews of their reserve levels and modify their expenditure patterns to ensure reserves are maintained within approved limits. The required approvals should be obtained from the funder to expend excess funds. Management?s Response: The School had earmarked the reserve funds for the purchase of additional kitchen equipment associated with its new high school. Due to permit delays the opening of the high school was delayed by a year. Management anticipates that the excess funds will be spent during fiscal year 2023 and the School will be within the 90-day reserve level.
Reporting 2022-001 Significant Deficiency in Internal Control over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During our audit of the School's major programs, we detected certain deficiencies in internal control over compliance. The School submitted vouchers for September 2021 and October 2021 late. The submission exceeded the required 60 days following the last day of the month covered by the claim. The September 2021 voucher could not be accessed and verified by auditors. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim. Cause: The School lunch director resigned from the School during September 2021 as such the director did not communicate to the management team, that the member?s credentials were about to expire. The credentials lapsed and obtaining new credentials took a significant amount of time as a result, the school lunch claim reimbursement was delayed. Effect: Because of lack of supporting documentation, the report submitted was unable to be verified and the reporting deadline was not met. Auditors? Recommendation: Management should maintain a checklist of all specific due dates associated with Uniform Guidance (?UG?) compliance, including credential renewals, voucher submissions, UG report due date, and other reporting requirements. Management Response: Management is aware of the reporting deadlines associated with voucher claims. Unfortunately, a staff member left the School and failed to file the annual renewal report, which resulted in the School being locked out of the vouchering system. The School immediately filed to renew but due to the time it took for the renewal process the September and October vouchers were filed beyond the reporting deadline. This has been rectified and procedures have been implemented whereby the School?s CFO reviews the renewal application to ensure timely filing.
Special Test and Provision 2022-002 Significant Deficiency in Internal Control Over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During the audit of the School's, we noted that the School is maintaining excess reserve levels without an appropriately approved spending plan in place. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School should not maintain more than 90 days of unspent food program funds. The School should have a plan in place on how such excess funds will be utilized. The plan should be approved by the funding source. Cause: The School's management was unaware of the requirement with respect to excess reserve funds. Effect: The School has a restricted fund balance of $175,909 which is in excess of a 90 day reserve level by $13,379. The school has no approved plan of how utilize these funds in the near future. Auditors? Recommendation: Management should perform quarterly reviews of their reserve levels and modify their expenditure patterns to ensure reserves are maintained within approved limits. The required approvals should be obtained from the funder to expend excess funds. Management?s Response: The School had earmarked the reserve funds for the purchase of additional kitchen equipment associated with its new high school. Due to permit delays the opening of the high school was delayed by a year. Management anticipates that the excess funds will be spent during fiscal year 2023 and the School will be within the 90-day reserve level.
Reporting 2022-001 Significant Deficiency in Internal Control over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During our audit of the School's major programs, we detected certain deficiencies in internal control over compliance. The School submitted vouchers for September 2021 and October 2021 late. The submission exceeded the required 60 days following the last day of the month covered by the claim. The September 2021 voucher could not be accessed and verified by auditors. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim. Cause: The School lunch director resigned from the School during September 2021 as such the director did not communicate to the management team, that the member?s credentials were about to expire. The credentials lapsed and obtaining new credentials took a significant amount of time as a result, the school lunch claim reimbursement was delayed. Effect: Because of lack of supporting documentation, the report submitted was unable to be verified and the reporting deadline was not met. Auditors? Recommendation: Management should maintain a checklist of all specific due dates associated with Uniform Guidance (?UG?) compliance, including credential renewals, voucher submissions, UG report due date, and other reporting requirements. Management Response: Management is aware of the reporting deadlines associated with voucher claims. Unfortunately, a staff member left the School and failed to file the annual renewal report, which resulted in the School being locked out of the vouchering system. The School immediately filed to renew but due to the time it took for the renewal process the September and October vouchers were filed beyond the reporting deadline. This has been rectified and procedures have been implemented whereby the School?s CFO reviews the renewal application to ensure timely filing.
Special Test and Provision 2022-002 Significant Deficiency in Internal Control Over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During the audit of the School's, we noted that the School is maintaining excess reserve levels without an appropriately approved spending plan in place. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School should not maintain more than 90 days of unspent food program funds. The School should have a plan in place on how such excess funds will be utilized. The plan should be approved by the funding source. Cause: The School's management was unaware of the requirement with respect to excess reserve funds. Effect: The School has a restricted fund balance of $175,909 which is in excess of a 90 day reserve level by $13,379. The school has no approved plan of how utilize these funds in the near future. Auditors? Recommendation: Management should perform quarterly reviews of their reserve levels and modify their expenditure patterns to ensure reserves are maintained within approved limits. The required approvals should be obtained from the funder to expend excess funds. Management?s Response: The School had earmarked the reserve funds for the purchase of additional kitchen equipment associated with its new high school. Due to permit delays the opening of the high school was delayed by a year. Management anticipates that the excess funds will be spent during fiscal year 2023 and the School will be within the 90-day reserve level.
Reporting 2022-001 Significant Deficiency in Internal Control over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During our audit of the School's major programs, we detected certain deficiencies in internal control over compliance. The School submitted vouchers for September 2021 and October 2021 late. The submission exceeded the required 60 days following the last day of the month covered by the claim. The September 2021 voucher could not be accessed and verified by auditors. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim. Cause: The School lunch director resigned from the School during September 2021 as such the director did not communicate to the management team, that the member?s credentials were about to expire. The credentials lapsed and obtaining new credentials took a significant amount of time as a result, the school lunch claim reimbursement was delayed. Effect: Because of lack of supporting documentation, the report submitted was unable to be verified and the reporting deadline was not met. Auditors? Recommendation: Management should maintain a checklist of all specific due dates associated with Uniform Guidance (?UG?) compliance, including credential renewals, voucher submissions, UG report due date, and other reporting requirements. Management Response: Management is aware of the reporting deadlines associated with voucher claims. Unfortunately, a staff member left the School and failed to file the annual renewal report, which resulted in the School being locked out of the vouchering system. The School immediately filed to renew but due to the time it took for the renewal process the September and October vouchers were filed beyond the reporting deadline. This has been rectified and procedures have been implemented whereby the School?s CFO reviews the renewal application to ensure timely filing.
Special Test and Provision 2022-002 Significant Deficiency in Internal Control Over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During the audit of the School's, we noted that the School is maintaining excess reserve levels without an appropriately approved spending plan in place. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School should not maintain more than 90 days of unspent food program funds. The School should have a plan in place on how such excess funds will be utilized. The plan should be approved by the funding source. Cause: The School's management was unaware of the requirement with respect to excess reserve funds. Effect: The School has a restricted fund balance of $175,909 which is in excess of a 90 day reserve level by $13,379. The school has no approved plan of how utilize these funds in the near future. Auditors? Recommendation: Management should perform quarterly reviews of their reserve levels and modify their expenditure patterns to ensure reserves are maintained within approved limits. The required approvals should be obtained from the funder to expend excess funds. Management?s Response: The School had earmarked the reserve funds for the purchase of additional kitchen equipment associated with its new high school. Due to permit delays the opening of the high school was delayed by a year. Management anticipates that the excess funds will be spent during fiscal year 2023 and the School will be within the 90-day reserve level.