Audit 47803

Criteria: Management is responsible for the design and implementation of internal controls to identify that expenditures were for appropriate purposes. Condition and Context: The Director of Business, Finance and Operations receives all invoices, can enter invoices into the financial system, submit for payment and make payment without clear documentation of approval by management. Cause: Small administrative staff and funding to include other staff. Effect: Purchases could be made for improper purposes or in incorrect amounts. Questioned Costs: None Recommendation: Management should seek appropriate staffing to add an approval for each purchase or include a board member in approving purchases. Views of Responsible Officials and Planned Corrective Actions: Staffing levels and time available have made it difficult to implement many internal controls. Due to closing the school in 2023, management will not be able to take corrective actions.

Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the School?s year-end. Condition and Context: The School did not track total federal expenditures to determine whether the School had gone over the limit to require a Single Audit, and final determination was not made until eight months after the fiscal year ended. Cause: Turnover in key financial staff and lack of understanding federal audit requirements. Effect: The audit was completed and submitted more than a month after the deadline. Questioned Costs: None Recommendation: Management should seek appropriate staffing and training for staff in the fiscal department to timely determine when a Single Audit is necessary. Views of Responsible Officials and Planned Corrective Actions: Management is now informed of the audit threshold and how to track it. However, management does not expect reaching the Single Audit requirement threshold again as they are closing the School, and thus, do not believe any further corrective actions are necessary.

Criteria: Management is responsible for the design and implementation of internal controls to identify that expenditures were for appropriate purposes. Condition and Context: The Director of Business, Finance and Operations receives all invoices, can enter invoices into the financial system, submit for payment and make payment without clear documentation of approval by management. Cause: Small administrative staff and funding to include other staff. Effect: Purchases could be made for improper purposes or in incorrect amounts. Questioned Costs: None Recommendation: Management should seek appropriate staffing to add an approval for each purchase or include a board member in approving purchases. Views of Responsible Officials and Planned Corrective Actions: Staffing levels and time available have made it difficult to implement many internal controls. Due to closing the school in 2023, management will not be able to take corrective actions.

Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the School?s year-end. Condition and Context: The School did not track total federal expenditures to determine whether the School had gone over the limit to require a Single Audit, and final determination was not made until eight months after the fiscal year ended. Cause: Turnover in key financial staff and lack of understanding federal audit requirements. Effect: The audit was completed and submitted more than a month after the deadline. Questioned Costs: None Recommendation: Management should seek appropriate staffing and training for staff in the fiscal department to timely determine when a Single Audit is necessary. Views of Responsible Officials and Planned Corrective Actions: Management is now informed of the audit threshold and how to track it. However, management does not expect reaching the Single Audit requirement threshold again as they are closing the School, and thus, do not believe any further corrective actions are necessary.