Audit 9554

FY End
2023-06-30
Total Expended
$2.13M
Findings
8
Programs
7
Organization: Louisiana Key Academy (LA)
Year: 2023 Accepted: 2024-01-04

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
7403 2023-001 Significant Deficiency Yes N
7404 2023-001 Significant Deficiency Yes N
7405 2023-002 Material Weakness Yes N
7406 2023-002 Material Weakness Yes N
583845 2023-001 Significant Deficiency Yes N
583846 2023-001 Significant Deficiency Yes N
583847 2023-002 Material Weakness Yes N
583848 2023-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $682,759 Yes 0
10.555 National School Lunch Program $264,868 - 2
84.027 Special Education_grants to States $164,820 - 0
10.553 School Breakfast Program $103,929 - 2
84.010 Title I Grants to Local Educational Agencies $98,500 - 0
84.371 Striving Readers $52,500 - 0
84.367 Improving Teacher Quality State Grants $9,000 - 0

Contacts

Name Title Type
DHT6LG6HVKN9 Troy Jones Auditee
2252981223 Jim Fairchild Auditor
No contacts on file

Notes to SEFA

Title: Relationship to the Federal Reports Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity for the School under programs of the federal government for the year ended June 30, 2023. The information in this 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 (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 position, or cash flows of the School. All federal financial assistance received directly from federal agencies is included on the Schedule, as well as federal financial assistance passed through other agencies. The School’s Schedule is presented using the accrual basis of accounting, which is described in Note 1 to the School’s financial statements for the year ended June 30, 2023. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10 percent de minims indirect cost as allowed under the Uniform Guidance. Amounts reported in the Schedule agree with the amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with accounting principles generally accepted in the United States of America.
Title: Noncash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity for the School under programs of the federal government for the year ended June 30, 2023. The information in this 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 (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 position, or cash flows of the School. All federal financial assistance received directly from federal agencies is included on the Schedule, as well as federal financial assistance passed through other agencies. The School’s Schedule is presented using the accrual basis of accounting, which is described in Note 1 to the School’s financial statements for the year ended June 30, 2023. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School has not elected to use the 10 percent de minims indirect cost as allowed under the Uniform Guidance. The School did not receive any federal noncash assistance for the year ended June 30, 2023.

Finding Details

2023-001: Internal Control Over Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: There are not effective internal controls over the accounting of the school foodservice program, as required by Uniform Guidance. Criteria: The School must design and implement internal controls to provide reasonable assurance regarding the reliability and maintenance of recordkeeping for the school food service program. Cause: Controls over the compliance requirement of special tests and provisions – non-profit school food service accounts were not designed and implemented appropriately. Funds received and disbursed for the food service program were comingled and not separately accounted for. Effect: Lack of controls over this compliance requirement impacted compliance. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan
2023-001: Internal Control Over Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: There are not effective internal controls over the accounting of the school foodservice program, as required by Uniform Guidance. Criteria: The School must design and implement internal controls to provide reasonable assurance regarding the reliability and maintenance of recordkeeping for the school food service program. Cause: Controls over the compliance requirement of special tests and provisions – non-profit school food service accounts were not designed and implemented appropriately. Funds received and disbursed for the food service program were comingled and not separately accounted for. Effect: Lack of controls over this compliance requirement impacted compliance. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan
2023-002: Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: The School did not credit account for the food service account appropriately during the year. Criteria: As described in 2 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i), the School must operate its food services on a non-profit basis; all revenue generated by the School food service must be used to operate and improve its food services. Cause: The School did not appropriately maintain its food service accounting records. Effect: The School was not in compliance with this program’s special test and provision compliance requirement. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan
2023-002: Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: The School did not credit account for the food service account appropriately during the year. Criteria: As described in 2 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i), the School must operate its food services on a non-profit basis; all revenue generated by the School food service must be used to operate and improve its food services. Cause: The School did not appropriately maintain its food service accounting records. Effect: The School was not in compliance with this program’s special test and provision compliance requirement. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan
2023-001: Internal Control Over Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: There are not effective internal controls over the accounting of the school foodservice program, as required by Uniform Guidance. Criteria: The School must design and implement internal controls to provide reasonable assurance regarding the reliability and maintenance of recordkeeping for the school food service program. Cause: Controls over the compliance requirement of special tests and provisions – non-profit school food service accounts were not designed and implemented appropriately. Funds received and disbursed for the food service program were comingled and not separately accounted for. Effect: Lack of controls over this compliance requirement impacted compliance. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan
2023-001: Internal Control Over Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: There are not effective internal controls over the accounting of the school foodservice program, as required by Uniform Guidance. Criteria: The School must design and implement internal controls to provide reasonable assurance regarding the reliability and maintenance of recordkeeping for the school food service program. Cause: Controls over the compliance requirement of special tests and provisions – non-profit school food service accounts were not designed and implemented appropriately. Funds received and disbursed for the food service program were comingled and not separately accounted for. Effect: Lack of controls over this compliance requirement impacted compliance. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan
2023-002: Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: The School did not credit account for the food service account appropriately during the year. Criteria: As described in 2 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i), the School must operate its food services on a non-profit basis; all revenue generated by the School food service must be used to operate and improve its food services. Cause: The School did not appropriately maintain its food service accounting records. Effect: The School was not in compliance with this program’s special test and provision compliance requirement. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan
2023-002: Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Year Finding Originated: 2022 Compliance Requirement: Special Tests and Provisions Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education Questioned Costs: No questioned costs noted. Condition: The School did not credit account for the food service account appropriately during the year. Criteria: As described in 2 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i), the School must operate its food services on a non-profit basis; all revenue generated by the School food service must be used to operate and improve its food services. Cause: The School did not appropriately maintain its food service accounting records. Effect: The School was not in compliance with this program’s special test and provision compliance requirement. Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account. Management’s Corrective Action Plan: See page 32 for management’s corrective action plan