Finding 1170982 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-29
Audit: 384380
Auditor: NISIVOCCIA LLP

AI Summary

  • Core Issue: The Charter School is not submitting federal grant reimbursements monthly or quarterly, and budgeted amounts in the financial software are inaccurate.
  • Impacted Requirements: Timely submission of reimbursements and accurate recording of budgeted federal grants are not being met, risking improper fund management.
  • Recommended Follow-Up: Implement a plan to ensure monthly or quarterly submissions and accurate budget recording for federal grants.

Finding Text

Criteria - The reimbursements for federal grants should be submitted on a monthly or at least quarterly basis. The budgeted amounts recorded in the Charter School’s financial accounting software should reflect the grant award and/or unexpended carryover funds as applicable. Condition - The Charter School does not in submission for reimbursement of expenditures federal grants on a monthly or quarterly basis and the budgeted amounts recorded in the Charter School’s financial accounting software for IDEA, Title I, Title III and Title IV did not accurately reflect the grant award and unexpended carryover funds. The Finance Department of the Charter School is responsible for the timely submission of the federal grants and the accurate recording of the budgeted federal grants in the Charter School’s financial accounting software. These processes are performed by one person with limited oversight review. Cause - This is due, in part, to the limited number of personnel at the Charter School. Effect or Potential Effect - In accurate submission of federal grants and inaccurate recording of the budgeted federal grants in the Charter School’s financial accounting software could result in for federal grant monies not being expended or over expenditures of grant awards. Recommendation - It is recommended that the Charter School submit reimbursement requests for federal grants on a monthly or at least a quarterly basis and ensure that the budgeted amounts and unexpended carryover funds are properly recorded in the Charter School’s financial accounting software for the federal grant funds. Management’s Response - Management will ensure that a corrective action plan is prepared and implemented to address the recommendations regarding federal grants.

Corrective Action Plan

In response to the findings from the 2025 ACFR, MLVR Charter school will be submitting a CFM CAP to homeroom. The CAP will address the following: 1. Reimbursement requests will be submitted at a minimum quarterly otherwise every two months. 2. Accounting software is updated and reviewed to ensure budgeted amounts and carryover funds are properly recorded throughout the fiscal year.

Categories

Student Financial Aid Cash Management Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $514,964
10.555 NATIONAL SCHOOL LUNCH PROGRAM $367,003
84.425 EDUCATION STABILIZATION FUND $257,652
84.027 SPECIAL EDUCATION_GRANTS TO STATES $198,190
10.553 SCHOOL BREAKFAST PROGRAM $99,230
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $65,630
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $54,339
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $39,252
93.778 MEDICAL ASSISTANCE PROGRAM $7,856
10.649 SUMMER EBT ADMINISTRATIVE COSTS $643