Finding 1176183 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-03
Audit: 389994
Organization: La Academia De Estrellas (TX)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance for allowable costs in the Child Nutrition Cluster grants.
  • Impacted Requirements: The school failed to follow Section 200 of the Code of Federal Regulations, which mandates robust internal controls for grant expenditures.
  • Recommended Follow-Up: Implement a prior approval process for all grant expenditures and ensure documentation of approvals is maintained.

Finding Text

Finding 2025-001: Allowable cost and activities - Significant deficiency in internal controls over compliance. Child Nutrition Cluster ALN 10.555/10.553 Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to reduce the risk of noncompliance with cost principles for all activities allocated to the grant. Condition: During allowable cost and activities other cost testing for the program, 9 out of 40 samples did not include approval of the invoice prior to being allocated to the grant activities. Cause: Prior to March 2025, the School did not have a standard procedure in place to ensure proper controls over allowable costs and activities allocated to federal grants. Effect: Internal controls over the program were not properly designed to reduce the risk of noncompliance with Federal Regulation Questioned costs: None. Recommendation: In order to comply with the Code of Federal Regulations, we recommend the school implement a prior approval process of all grant expenditures. In addition, support of approval should be documented kept on file. Management’s response: See corrective action plan, which was implemented in March 2025.

Corrective Action Plan

Finding 2025-001: Allowable cost and activities – Significant deficiency in internal controls over compliance. Management Response: The School has implemented procedures to ensure that invoices are approved prior to being paid. Expenses are reviewed and approved through the PO process within the Ascender System. Each request is evaluated for accurate account coding, appropriateness, and compliance with Federal Grant allowable costs (when necessary). Spending and allowable costs are closely monitored on an ongoing basis. Once orders have been placed, products have been received/services rendered, and invoices received, the accounting clerk will prepare documents for the check run. A “check payments” report is provided which lists all transactions for the check run. The “check payments” document clearly displays the vendor, account code, and amount of each transaction. The “check payments” report is approved by Superintendent. Once “check payment” report is approved by Superintendent, the check run will be initiated. Documentation of prior approval will be kept on file. The new process began in March 2025. Responsible Party: Kemlyn Williams, Superintendent Dynamic Support Solutions, Contract CFO

Categories

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 1176175 2025-001
    Material Weakness Repeat
  • 1176176 2025-002
    Material Weakness Repeat
  • 1176177 2025-001
    Material Weakness Repeat
  • 1176178 2025-002
    Material Weakness Repeat
  • 1176179 2025-001
    Material Weakness Repeat
  • 1176180 2025-002
    Material Weakness Repeat
  • 1176181 2025-001
    Material Weakness Repeat
  • 1176182 2025-002
    Material Weakness Repeat
  • 1176184 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $451,074
84.027 SPECIAL EDUCATION GRANTS TO STATES $172,200
10.553 SCHOOL BREAKFAST PROGRAM $141,083
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $66,392
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $50,505
84.425 EDUCATION STABILIZATION FUND $38,734
10.555 NATIONAL SCHOOL LUNCH PROGRAM $35,119
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $34,151
84.369 GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES $5,454