Audit 57314

FY End
2022-06-30
Total Expended
$2.03M
Findings
8
Programs
9
Year: 2022 Accepted: 2023-02-28
Auditor: Donovan PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
62153 2022-002 Significant Deficiency Yes G
62154 2022-001 Significant Deficiency - L
62155 2022-001 Significant Deficiency - L
62156 2022-001 Significant Deficiency - L
638595 2022-002 Significant Deficiency Yes G
638596 2022-001 Significant Deficiency - L
638597 2022-001 Significant Deficiency - L
638598 2022-001 Significant Deficiency - L

Programs

Contacts

Name Title Type
HSDKWLPJKXC7 Donald Stewart Auditee
3172264263 Bj Lippert Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal award activity of Matchbook Learning Schools of Indiana, Inc. (the School) underprograms of the federal government for the year ended June 30, 2022. The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of the School, it is not intended to and does not present thefinancial position, change in net assets, functional expenses, or cash flows of the School.NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.NOTE 3 - INDIRECT COST RATEThe School has elected not to use the 10 percent de minimis indirect cost rate allowed under theUniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

FINDING 2022-002 MAINTENANCE OF EFFORT (REPEAT FINDING) SIGNIFICANT DEFICIENCY Federal Program: Title I, Part A: Grants to Local Educational Agencies Assistance Listing Number: 84.010 Condition The Indiana Department of Education completes the maintenance of effort calculation using the Form 9 report issued by the School, which is a cash-basis report. Review of the School?s Form 9 found the report to be unreliable. Expenditures per the Form 9 totaled approximately $8,641,000 for the period of July 1, 2021 to June 30, 2022. Cash basis expenses per the School?s financial records totaled approximately $8,821,000. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement 2020, Section 4-84.000-13, states ?An LEA may receive funds under an applicable program only if the SEA finds that the combined fiscal effort per student or the aggregate expenditures of the LEA from state and local funds for free public education for the preceding year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding year, unless specifically waved.? Cause The School did not report expenses in line with the guidelines set by the Indiana Department of Education. Effect Maintenance of effort calculations prepared by the Indiana Department of Education could be impacted by incorrect reporting of expense transactions. Recommendation We recommend the School develop internal controls to ensure expenses are properly reported on the Form 9 report in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.
FINDING 2022-001 REPORTING SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425D Condition The United States Department of Education required the submission in May 2022 of a report covering the period of October 1, 2020 to June 30, 2021 outlining the various uses of Elementary and Secondary School Emergency Relief Funds. The School was unable to provide support for how the amounts submitted in this report were calculated. Totals reported for expenses were not in line with totals expended during the period. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement, Section 3-L-1, states ?Non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award.? Cause The School did not report activity related to the use of Elementary and Secondary School Emergency Relief Funds in line with actual activity. The School did not have controls in place to ensure accurate reporting. Effect Information on the use of funds from the Education Stabilization Fund were not accurately presented. Recommendation We recommend the School develop internal controls to ensure accurate reporting in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.
FINDING 2022-001 REPORTING SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425D Condition The United States Department of Education required the submission in May 2022 of a report covering the period of October 1, 2020 to June 30, 2021 outlining the various uses of Elementary and Secondary School Emergency Relief Funds. The School was unable to provide support for how the amounts submitted in this report were calculated. Totals reported for expenses were not in line with totals expended during the period. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement, Section 3-L-1, states ?Non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award.? Cause The School did not report activity related to the use of Elementary and Secondary School Emergency Relief Funds in line with actual activity. The School did not have controls in place to ensure accurate reporting. Effect Information on the use of funds from the Education Stabilization Fund were not accurately presented. Recommendation We recommend the School develop internal controls to ensure accurate reporting in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.
FINDING 2022-001 REPORTING SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425D Condition The United States Department of Education required the submission in May 2022 of a report covering the period of October 1, 2020 to June 30, 2021 outlining the various uses of Elementary and Secondary School Emergency Relief Funds. The School was unable to provide support for how the amounts submitted in this report were calculated. Totals reported for expenses were not in line with totals expended during the period. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement, Section 3-L-1, states ?Non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award.? Cause The School did not report activity related to the use of Elementary and Secondary School Emergency Relief Funds in line with actual activity. The School did not have controls in place to ensure accurate reporting. Effect Information on the use of funds from the Education Stabilization Fund were not accurately presented. Recommendation We recommend the School develop internal controls to ensure accurate reporting in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.
FINDING 2022-002 MAINTENANCE OF EFFORT (REPEAT FINDING) SIGNIFICANT DEFICIENCY Federal Program: Title I, Part A: Grants to Local Educational Agencies Assistance Listing Number: 84.010 Condition The Indiana Department of Education completes the maintenance of effort calculation using the Form 9 report issued by the School, which is a cash-basis report. Review of the School?s Form 9 found the report to be unreliable. Expenditures per the Form 9 totaled approximately $8,641,000 for the period of July 1, 2021 to June 30, 2022. Cash basis expenses per the School?s financial records totaled approximately $8,821,000. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement 2020, Section 4-84.000-13, states ?An LEA may receive funds under an applicable program only if the SEA finds that the combined fiscal effort per student or the aggregate expenditures of the LEA from state and local funds for free public education for the preceding year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding year, unless specifically waved.? Cause The School did not report expenses in line with the guidelines set by the Indiana Department of Education. Effect Maintenance of effort calculations prepared by the Indiana Department of Education could be impacted by incorrect reporting of expense transactions. Recommendation We recommend the School develop internal controls to ensure expenses are properly reported on the Form 9 report in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.
FINDING 2022-001 REPORTING SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425D Condition The United States Department of Education required the submission in May 2022 of a report covering the period of October 1, 2020 to June 30, 2021 outlining the various uses of Elementary and Secondary School Emergency Relief Funds. The School was unable to provide support for how the amounts submitted in this report were calculated. Totals reported for expenses were not in line with totals expended during the period. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement, Section 3-L-1, states ?Non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award.? Cause The School did not report activity related to the use of Elementary and Secondary School Emergency Relief Funds in line with actual activity. The School did not have controls in place to ensure accurate reporting. Effect Information on the use of funds from the Education Stabilization Fund were not accurately presented. Recommendation We recommend the School develop internal controls to ensure accurate reporting in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.
FINDING 2022-001 REPORTING SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425D Condition The United States Department of Education required the submission in May 2022 of a report covering the period of October 1, 2020 to June 30, 2021 outlining the various uses of Elementary and Secondary School Emergency Relief Funds. The School was unable to provide support for how the amounts submitted in this report were calculated. Totals reported for expenses were not in line with totals expended during the period. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement, Section 3-L-1, states ?Non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award.? Cause The School did not report activity related to the use of Elementary and Secondary School Emergency Relief Funds in line with actual activity. The School did not have controls in place to ensure accurate reporting. Effect Information on the use of funds from the Education Stabilization Fund were not accurately presented. Recommendation We recommend the School develop internal controls to ensure accurate reporting in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.
FINDING 2022-001 REPORTING SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425D Condition The United States Department of Education required the submission in May 2022 of a report covering the period of October 1, 2020 to June 30, 2021 outlining the various uses of Elementary and Secondary School Emergency Relief Funds. The School was unable to provide support for how the amounts submitted in this report were calculated. Totals reported for expenses were not in line with totals expended during the period. Criteria 2 CFR part 200, Appendix XI, Compliance Supplement, Section 3-L-1, states ?Non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award.? Cause The School did not report activity related to the use of Elementary and Secondary School Emergency Relief Funds in line with actual activity. The School did not have controls in place to ensure accurate reporting. Effect Information on the use of funds from the Education Stabilization Fund were not accurately presented. Recommendation We recommend the School develop internal controls to ensure accurate reporting in line with guidelines. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on pages 23 and 24.