Finding 1096114 (2024-001)

Department of Education COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act Activities Allowed or Unallowed and Allowable Cost/Cost Principles Deficiency in Internal Control over Compliance Employee Contracts Condition: During our audit, it came to our attention that certain employee contracts could not be located. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Cause: The Charter School had turnover in administrative functions and some employment contracts appear to have been misplaced. Effect: Controls were deficient over proper safeguarding and recordkeeping of employment contracts. Recommendation: We recommended that the Charter develop a procedure to keep track of employment contracts using proper controls and technology. Management Response: The Academy agrees with the finding and plans to implement recommendations from the auditor and contract accountants in future years.