Finding 1092917 (2023-010)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-12-20
Audit: 334382
Organization: Academy of America (MI)
Auditor: Uhy LLP

AI Summary

  • Core Issue: The Academy failed to submit the required data collection form on time, violating compliance regulations.
  • Impacted Requirements: Non-compliance with 2 CFR 200.512 regarding timely submission of audit-related documents.
  • Recommended Follow-up: Implement a reliable system for closing financial records promptly, including process reviews and potential automation.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425U, Department of Education, Education Stabilization Fund (ESSER II, TCLAS ESSER III, ARP ESSER III) Federal Award Identification Number and Year: 20521001015809, 20521001057810 Pass-through Entity – Texas Education Agency Finding Type – Material weakness in internal control over compliance Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended August 31, 2023. Cause – Bexar County Academy’s (the “Academy”) books and records for the 2023 fiscal year were not reconciled and closed in a timely manner. Effect – The data collection form was not submitted within the required time as required by 2 CFR 200.512. Recommendation – We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – The Academies will develop a reliable system that will lead to the timely processing of the financial records by reviewing existing procedures to identify bottlenecks and areas of improvement. Feedback will be gathered from team members involved in the financial record keeping process so that standard procedures can be development and implemented. Furthermore, opportunities to automate processes and use software to assist with data entry, record reconciliation, and reporting can be used. This will significantly decrease manual workload and improve accuracy and timeliness.

Categories

Matching / Level of Effort / Earmarking Subrecipient Monitoring Material Weakness Reporting

Other Findings in this Audit

  • 516472 2023-009
    Material Weakness Repeat
  • 516473 2023-010
    Material Weakness
  • 516474 2023-009
    Material Weakness Repeat
  • 516475 2023-010
    Material Weakness
  • 516476 2023-009
    Material Weakness Repeat
  • 516477 2023-010
    Material Weakness
  • 1092914 2023-009
    Material Weakness Repeat
  • 1092915 2023-010
    Material Weakness
  • 1092916 2023-009
    Material Weakness Repeat
  • 1092918 2023-009
    Material Weakness Repeat
  • 1092919 2023-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425D Education Stabilization Fund $1.17M
84.425U Education Stabilization Fund $757,722
84.010A Title I Grants to Local Educational Agencies $333,858
84.287C Twenty-First Century Community Learning Centers $209,500
10.553 School Breakfast Program $144,034
84.027A Special Education Grants to States $120,841
10.555 National School Lunch Program $42,265
84.424A Student Support and Academic Enrichment Program $31,101
84.367A Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $20,072
84.027X Special Education Grants to States $16,900
84.173A Special Education Preschool Grants $5,833
84.365A English Language Acquisition State Grants $5,468
10.649 Pandemic Ebt Administrative Costs $1,256