FAC Explorer

Audit 52646

FY End
2022-06-30
Total Expended
$2.44M
Findings
6
Programs
14
Organization: Elsie Whitlow Stokes Community Freedom Public Charter School (DC)
Year: 2022 Accepted: 2022-12-19
Auditor: Sb & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50261 2022-001 Significant Deficiency - P
50262 2022-001 Significant Deficiency - P
50263 2022-001 Significant Deficiency - P
626703 2022-001 Significant Deficiency - P
626704 2022-001 Significant Deficiency - P
626705 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.425 Esser III American Rescue Plan Act $687,412 Yes 1
10.555 National School Lunch Program $514,085 - 0
84.425 Elementary and Secondary School Emergency Relief (esser) II $458,357 Yes 1
84.010 Title I Grants to Local Educational Agencies $199,272 - 0
10.558 Child and Adult Care Food Program $130,799 - 0
93.778 Medical Assistance Program $107,773 - 0
84.370 Soar Formula Combined $97,994 - 0
84.027 Idea, Part B (611) Fy19 $91,923 - 0
93.323 Covid Testing Grant $89,541 - 0
84.027 Arp Idea 611 $21,497 - 0
84.425 Coronavirus Aid, Relief, and Economic Security (cares) $18,274 Yes 1
10.582 Fresh Fruit and Vegetable Program $16,207 - 0
84.027 Idea, Part B (619) Fy19 $1,459 - 0
84.173 Arp Idea 619 $727 - 0

Contacts

Name Title Type
G1DJALA91F28 Bill Moczydlowski Auditee
2022657237 Tiana Wynn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: All Federal grant operations of Elsie Whitlow Stokes Community Freedom Public Charter School (the School) are included in the scope of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the schedule of expenditures of Federal awards represents all Federal award programs with fiscal year 2022, cash or non-cash expenditure activities. For single audit testing, we tested to ensure coverage of at least 40% of Federally granted funds. Actual coverage is 48%. The major program tested is listed below. 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 includes the Federal award activity of the School and is presented on the accrual basis of accounting.
Title: Medicaid Administration Support Program Accounting Policies: All Federal grant operations of Elsie Whitlow Stokes Community Freedom Public Charter School (the School) are included in the scope of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the schedule of expenditures of Federal awards represents all Federal award programs with fiscal year 2022, cash or non-cash expenditure activities. For single audit testing, we tested to ensure coverage of at least 40% of Federally granted funds. Actual coverage is 48%. The major program tested is listed below. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Medicaid expenditures of $107,773 is not included in the threshold amount to require an entity to have a Single Audit because there is already separate and sufficient monitoring of this program being done. However, for the purposes of the Schedule reporting, the Medicaid payments must be reported.

Finding Details

Finding 2022-001
Section II ?Financial Statement Findings Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During our audit, it came to our attention that several key accounts (cash, receivables, payables, etc.) had not been reviewed as of year-end. The School had several post year-end adjustments to present its financial statements in accordance with generally accepted accounting principles. Such adjustments related to errors (both material and immaterial) that were undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the School must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ?200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The School did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We strongly recommend the School develop a formal written procedure to develop monthly and year-end financial reporting procedures and checklists to assist in the preparation of financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel.
Finding 2022-001
Section II ?Financial Statement Findings Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During our audit, it came to our attention that several key accounts (cash, receivables, payables, etc.) had not been reviewed as of year-end. The School had several post year-end adjustments to present its financial statements in accordance with generally accepted accounting principles. Such adjustments related to errors (both material and immaterial) that were undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the School must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ?200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The School did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We strongly recommend the School develop a formal written procedure to develop monthly and year-end financial reporting procedures and checklists to assist in the preparation of financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel.
Finding 2022-001
Section II ?Financial Statement Findings Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During our audit, it came to our attention that several key accounts (cash, receivables, payables, etc.) had not been reviewed as of year-end. The School had several post year-end adjustments to present its financial statements in accordance with generally accepted accounting principles. Such adjustments related to errors (both material and immaterial) that were undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the School must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ?200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The School did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We strongly recommend the School develop a formal written procedure to develop monthly and year-end financial reporting procedures and checklists to assist in the preparation of financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel.
Finding 2022-001
Section II ?Financial Statement Findings Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During our audit, it came to our attention that several key accounts (cash, receivables, payables, etc.) had not been reviewed as of year-end. The School had several post year-end adjustments to present its financial statements in accordance with generally accepted accounting principles. Such adjustments related to errors (both material and immaterial) that were undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the School must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ?200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The School did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We strongly recommend the School develop a formal written procedure to develop monthly and year-end financial reporting procedures and checklists to assist in the preparation of financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel.
Finding 2022-001
Section II ?Financial Statement Findings Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During our audit, it came to our attention that several key accounts (cash, receivables, payables, etc.) had not been reviewed as of year-end. The School had several post year-end adjustments to present its financial statements in accordance with generally accepted accounting principles. Such adjustments related to errors (both material and immaterial) that were undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the School must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ?200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The School did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We strongly recommend the School develop a formal written procedure to develop monthly and year-end financial reporting procedures and checklists to assist in the preparation of financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel.
Finding 2022-001
Section II ?Financial Statement Findings Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During our audit, it came to our attention that several key accounts (cash, receivables, payables, etc.) had not been reviewed as of year-end. The School had several post year-end adjustments to present its financial statements in accordance with generally accepted accounting principles. Such adjustments related to errors (both material and immaterial) that were undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the School must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ?200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The School did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We strongly recommend the School develop a formal written procedure to develop monthly and year-end financial reporting procedures and checklists to assist in the preparation of financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel.