Audit 60702

FY End
2022-06-30
Total Expended
$4.78M
Findings
2
Programs
7
Organization: Perspectives Charter Schools (IL)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
60490 2022-001 Significant Deficiency - B
636932 2022-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $1.95M Yes 1
84.010 Title I Grants to Local Educational Agencies $1.22M - 0
10.582 Fresh Fruit and Vegetable Program $98,846 - 0
10.553 School Breakfast Program $41,289 - 0
10.555 National School Lunch Program $34,414 - 0
84.367 Supporting Effective Instruction State Grants $21,721 - 0
84.424 Student Support and Academic Enrichment Program $11,749 - 0

Contacts

Name Title Type
LY75XCVN8NM4 Jerry Girardi Auditee
3126042185 Toni Diprizio Auditor
No contacts on file

Notes to SEFA

Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Perspectives Charter Schools, PCS 8522 S. Lafayette LLC, and PCS Project Support Corporation NFP (collectively, the School) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the 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, functional expenses, or cash flows of the School. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass through entity identifying numbers are presented where available. The School has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance. During the year ended June 30, 2022, the School received noncash food commodities assistance under Assistance Listing Number 10.555 in the amount of $131,100. This amount is included in the Schedule.Other than the food commodities assistance received, there were no other amounts of noncash assistance, federal insurance, loans, or loan guarantees outstanding as of and for the year ended June 30, 2022.
Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Perspectives Charter Schools, PCS 8522 S. Lafayette LLC, and PCS Project Support Corporation NFP (collectively, the School) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the 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, functional expenses, or cash flows of the School. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass through entity identifying numbers are presented where available. The School has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance. During the year ended June 30, 2022, the School received noncash food commodities assistance under Assistance Listing #10.555 in the amount of $131,100. These amounts are included in the Schedule. Other than the food commodities assistance received, there were no other amounts of noncash assistance, federal insurance, loans, or loan guarantees outstanding as of and for the year ended June 30, 2022.

Finding Details

Assistance Listing Number, Federal Agency, and Program Name - 84.425U, Department of Education, COVID-19 - Elementary and Secondary School Emergency Relief Fund Federal Award Identification Number and Year - S425D210041; 2022 Pass through Entity - Chicago Public Schools Finding Type - Significant deficiency Repeat Finding - No Criteria - All nonfederal entities must follow generally accepted accounting principles (GAAP) when recording federal revenue and expenses (2 CFR 200.403 (e)) Condition - Controls in place did not identify a portion of expenditures, related to summer school stipends, incurred in fiscal year 2023 that were applied to the federal award in fiscal year 2022. Questioned Costs - $22,096 Identification of How Questioned Costs Were Computed - The questioned costs represent total federal expenditures incurred in fiscal year 2023 that are included on the accompanying schedule of expenditures of federal awards. Context - A total of $34,525 was recorded as federal expenditures related to summer school stipends paid in June and July 2022. 16 of the 25 days in the summer school term took place during fiscal year 2023. As such, only 9/25 of these expenditures should be reflected on the accompanying schedule of expenditures of federal awards. Cause and Effect - While the School had procedures in place to review for allowable costs, management's review did not prevent management from recording $22,096 more of expenditures of federal awards during fiscal year 2022 than what was incurred. Recommendation - We recommend the School review its procedures and controls to ensure costs are incurred in the same period as they are applied to federal awards. Views of Responsible Officials and Corrective Action Plan - The error was the result of a misunderstanding with the pass through entity regarding the reimbursement process. Going forward, a review will be performed to ensure federal revenue is recorded in the same period as the corresponding expense.
Assistance Listing Number, Federal Agency, and Program Name - 84.425U, Department of Education, COVID-19 - Elementary and Secondary School Emergency Relief Fund Federal Award Identification Number and Year - S425D210041; 2022 Pass through Entity - Chicago Public Schools Finding Type - Significant deficiency Repeat Finding - No Criteria - All nonfederal entities must follow generally accepted accounting principles (GAAP) when recording federal revenue and expenses (2 CFR 200.403 (e)) Condition - Controls in place did not identify a portion of expenditures, related to summer school stipends, incurred in fiscal year 2023 that were applied to the federal award in fiscal year 2022. Questioned Costs - $22,096 Identification of How Questioned Costs Were Computed - The questioned costs represent total federal expenditures incurred in fiscal year 2023 that are included on the accompanying schedule of expenditures of federal awards. Context - A total of $34,525 was recorded as federal expenditures related to summer school stipends paid in June and July 2022. 16 of the 25 days in the summer school term took place during fiscal year 2023. As such, only 9/25 of these expenditures should be reflected on the accompanying schedule of expenditures of federal awards. Cause and Effect - While the School had procedures in place to review for allowable costs, management's review did not prevent management from recording $22,096 more of expenditures of federal awards during fiscal year 2022 than what was incurred. Recommendation - We recommend the School review its procedures and controls to ensure costs are incurred in the same period as they are applied to federal awards. Views of Responsible Officials and Corrective Action Plan - The error was the result of a misunderstanding with the pass through entity regarding the reimbursement process. Going forward, a review will be performed to ensure federal revenue is recorded in the same period as the corresponding expense.