FAC Explorer

Finding 1176184 (2025-002)

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

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to allowable costs and activities for the Child Nutrition Cluster.
  • Impacted Requirements: The lack of retained documentation violates Section 200 of the Code of Federal Regulations, which mandates robust internal controls and three-year documentation retention.
  • Recommended Follow-Up: Update school policies to ensure all key control documentation is retained for at least three years to meet compliance requirements.

Finding Text

Finding 2025-002: 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 and to retain supporting documentation of control completion for three years from the date of submission of the expenditure request. Condition: During allowable cost and activities payroll testing for the program, the auditor noted that documentation of key control was not retained on file. Management ultimately obtained documentation of the control through a third-party service provider. Cause: Documentation and retention of key controls were not considered when designing the payroll process. Effect: Key internal control documentation was not properly retained and readily available to support the testing of key controls over the payroll process. Questioned costs: None Recommendation: In order to comply with the Code of Federal Regulations, we recommend the school’s policies be updated to require document retention for at least three years for all key control documentation. Management’s response: See corrective action plan.

Corrective Action Plan

Finding 2025-002: Allowable cost and activities – Significant deficiency in internal controls over compliance. Management Response: The School has implemented procedures to ensure that key control documentation is retained on file. The payroll file will be approved by either the Superintendent or the CFO prior to payment, and proof of prior approval will be maintained in the School’s files. The new process began in January 2026. 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
  • 1176183 2025-001
    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