FAC Explorer

Finding 1159448 (2024-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-10-01
Audit: 370184
Organization: School of Excellence in Education (TX)
Auditor: Sutton Frost Cary LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to allowable costs for Title I Grants.
  • Impacted Requirements: The School did not align payroll charges with actual time and effort, violating federal regulations on cost principles.
  • Recommended Follow-Up: Management must verify that grant charges match approved percentages from time and effort logs before submitting reimbursement requests.

Finding Text

Finding 2024‐003: Allowable costs – Significant deficiency in internal control over compliance and compliance finding. Title I Grants to Local Educational Agencies ALN 84.010 Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 3 out of 17 payroll transactions tested, the amount charged to the grant did not agree to actual time and effort. Cause: Funding percentages in the accounting system did not match the actual time and effort per the semi‐annual time and effort certification logs. Effect: The School's reporting of grant time and effort was not fully documented, in accordance with internal control over compliance procedures. The cumulative effect of the exceptions noted during tested resulted in the grants being undercharged by the School. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the semi‐annual time and effort certification logs before the request for reimbursement is submitted.

Corrective Action Plan

No. 2024-003 Subject: Allowable costs - Significant deficiency in internal control over compliance and compliance finding. Name of Contact Person: Ingmar Berg, CFO Phone Number: (480) 270-5438 x1091 Anticipated Completion Date: June 30, 2025 Corrective Action: We will review the funding percentage in the accounting system to the approved percentages in the semi-annual time and effort logs to verify accuracy. These improved internal procedures will provide proper compliance over allowable costs. Annual audit of all grant-funded employee positions at the start of each school year, reviewed by grants team, HR, and accounting to verify accuracy of all employee costing allocations to grants.

Categories

Allowable Costs / Cost Principles Cash Management Reporting Significant Deficiency

Other Findings in this Audit

  • 1159447 2024-003
    Material Weakness Repeat
  • 1159449 2024-004
    Material Weakness Repeat
  • 1159450 2024-004
    Material Weakness Repeat
  • 1159451 2024-004
    Material Weakness Repeat
  • 1159452 2024-004
    Material Weakness Repeat
  • 1159453 2024-004
    Material Weakness Repeat
  • 1159454 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $190,514
84.425 Education Stabilization Fund $155,993
84.010 Title I Grants to Local Educational Agencies $61,700
10.555 National School Lunch Program $42,142
10.553 School Breakfast Program $24,549
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $15,689
84.424 Student Support and Academic Enrichment Program $6,110