Finding 1173679 (2025-002)

Finding 2025-002: MAINTENANCE OF EFFORT – SIGNIFICANT DEFICIENCY Federal Program: Title I, Part A (84.010) Auditee Contact Person: James Ragsdale, CFO Expected Completion Date: July 31, 2026 Condition: The School’s Form 9 report, used by the IDOE to calculate Maintenance of Effort, was found to be unreliable. Reported expenditures on the Form 9 did not reconcile with the Network’s cash-basis financial records for the period of July 1, 2024, to June 30, 2025. Corrective Action Plan: To ensure accurate reporting and compliance with Federal MOE standards, Purdue Polytechnic High School of Indianapolis, Inc. will implement the following: Form 9 Reconciliation Protocol: The School will implement a mandatory reconciliation between the general ledger cash-basis reports and the Form 9 Biannual Financial Report prior to each submission (January and July). Standardized Chart of Accounts: The CFO will review all account mappings to ensure they strictly follow the SBOA Uniform Compliance Guidelines for Indiana Charter Schools. This will ensure expenses are categorized correctly by fund, object, and function as required for IDOE reporting. Quarterly Internal Audits: The Finance Team will perform a Form 9 reconciliation quarterly to identify and correct any discrepancies in cash-basis recording before the official reporting window opens. Staff Training: The CFO will attend IDOE Office of School Finance training sessions specifically focused on Form 9 submission and Maintenance of Effort compliance. Audit Trail Documentation: For every Form 9 submission, the CFO will maintain a "reconciliation folder" containing the original trial balance and the crosswalk used to generate the Form 9.