FAC Explorer

Audit 51761

FY End
2022-06-30
Total Expended
$1.77M
Findings
2
Programs
10
Organization: Educators for Quality Alternatives, Inc. (LA)
Year: 2022 Accepted: 2023-01-24
Auditor: Postlethwaite & Netterville

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46701 2022-001 - Yes N
623143 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $208,257 - 1
10.555 National School Lunch Program $135,636 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $81,192 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $43,500 - 0
10.553 School Breakfast Program $27,586 - 0
84.027 Special Education_grants to States $24,864 - 0
84.371 Striving Readers $21,848 - 0
84.425 Education Stabilization Fund $18,218 Yes 0
84.367 Improving Teacher Quality State Grants $16,382 - 0
84.048 Career and Technical Education -- Basic Grants to States $3,544 - 0

Contacts

Name Title Type
UEN5XBMJJEU8 Elizabeth Ostberg Auditee
5042284294 Rodney Combs Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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. The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Educators for Quality Alternatives, Inc. (the School) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 1 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, changes in net assets, or cash flows of the School.
Title: Relationship to Basic Financial Statements Accounting Policies: 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. The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal awards are included in federal grants revenue in the Statement of Activities.
Title: Amounts Passed Through to Subrecipients Accounting Policies: 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. The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School did not pass through any federal funding to subrecipients.

Finding Details

Finding 2022-001
2022 ? 001 Special Tests and Provisions U.S. Department of Education Passed through the Louisiana Department of Education 84.010A Title I Grants to Local Education Agencies 2021-2022 Award Year Grant No. S010A200018 Questioned Costs: None. Criteria: Educators for Quality Alternatives must report graduation rate data for all public high schools at the school level using the 4-year adjusted cohort rate under 34 CFR section 200.19(b)(1)(i)-(iv)). Only students who earn a regular high school diploma may be counted as a graduate for purposes of calculating the 4-year adjusted cohort graduation rate. To remove a student from the cohort, a school must confirm, in writing, that the student transferred out, emigrated to another country, or is deceased. Educators for Quality Alternatives is responsible for assigning exit codes to any student who leaves. Only specific exit codes are deemed legitimate reasons for leaving and will cause the leaver to not be included in the cohort?s graduation index calculations. These codes relate to death, transfers out of the state or country, transfers to non-public schools, transfers to home study/in-school private schooling, and transfers to Early College Admissions Programs. Specific documentation must be maintained for students to be considered legitimate leavers from the cohort. Educators for Quality Alternatives is also responsible for developing a system of internal controls to ensure the proper documentation is retained for all leavers of the cohort. Universe/ Population Size: The sample of cohort removals was selected from a universe that includes all students that left the school due to transferring to a diploma awarding school or program, death, or emigration to another country. Based on these requirements, the total universe is 57 students who are considered leavers of the cohort. This is also considered the population size. Sample Size: Based on sampling guidance for audits performed under the Uniform Guidance, a non-statistical sample of 6 leavers was selected for testing.Condition: In follow-up on prior year finding 2021-004, it was determined in the testing of internal controls and compliance with respect to 34 CFR ?200.19(b), 3 of 6 leavers had exceptions to the required documentation set forth by the Louisiana Administrative Code Title 28, Part LXXXIII, Chapter 6, ?611. Cause: Educators for Quality Alternatives has relied on the individual schools to acquire and retain all documentation related to the removal of students. Effect: Without proper internal controls over the graduation rate cohort reporting process, documentation may not be properly retained, and therefore Educators for Quality Alternatives may be noncompliant with the requirements of the Title I program. Recommendation: Educators for Quality Alternatives should establish procedures at the school and program administration levels to ensure appropriate documentation is obtained related to removal of students from a cohort in accordance with Louisiana Administrative Code Title 28, Part LXXXIII, Chapter 6, ?611. Repeat Finding: Yes; Reported as finding 2021-004 in fiscal period 2021.
Finding 2022-001
2022 ? 001 Special Tests and Provisions U.S. Department of Education Passed through the Louisiana Department of Education 84.010A Title I Grants to Local Education Agencies 2021-2022 Award Year Grant No. S010A200018 Questioned Costs: None. Criteria: Educators for Quality Alternatives must report graduation rate data for all public high schools at the school level using the 4-year adjusted cohort rate under 34 CFR section 200.19(b)(1)(i)-(iv)). Only students who earn a regular high school diploma may be counted as a graduate for purposes of calculating the 4-year adjusted cohort graduation rate. To remove a student from the cohort, a school must confirm, in writing, that the student transferred out, emigrated to another country, or is deceased. Educators for Quality Alternatives is responsible for assigning exit codes to any student who leaves. Only specific exit codes are deemed legitimate reasons for leaving and will cause the leaver to not be included in the cohort?s graduation index calculations. These codes relate to death, transfers out of the state or country, transfers to non-public schools, transfers to home study/in-school private schooling, and transfers to Early College Admissions Programs. Specific documentation must be maintained for students to be considered legitimate leavers from the cohort. Educators for Quality Alternatives is also responsible for developing a system of internal controls to ensure the proper documentation is retained for all leavers of the cohort. Universe/ Population Size: The sample of cohort removals was selected from a universe that includes all students that left the school due to transferring to a diploma awarding school or program, death, or emigration to another country. Based on these requirements, the total universe is 57 students who are considered leavers of the cohort. This is also considered the population size. Sample Size: Based on sampling guidance for audits performed under the Uniform Guidance, a non-statistical sample of 6 leavers was selected for testing.Condition: In follow-up on prior year finding 2021-004, it was determined in the testing of internal controls and compliance with respect to 34 CFR ?200.19(b), 3 of 6 leavers had exceptions to the required documentation set forth by the Louisiana Administrative Code Title 28, Part LXXXIII, Chapter 6, ?611. Cause: Educators for Quality Alternatives has relied on the individual schools to acquire and retain all documentation related to the removal of students. Effect: Without proper internal controls over the graduation rate cohort reporting process, documentation may not be properly retained, and therefore Educators for Quality Alternatives may be noncompliant with the requirements of the Title I program. Recommendation: Educators for Quality Alternatives should establish procedures at the school and program administration levels to ensure appropriate documentation is obtained related to removal of students from a cohort in accordance with Louisiana Administrative Code Title 28, Part LXXXIII, Chapter 6, ?611. Repeat Finding: Yes; Reported as finding 2021-004 in fiscal period 2021.