FAC Explorer

Finding 1216200 (2023-003)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2026-05-31
Audit: 402683
Organization: LIFE Academy (AL)
Auditor: SCHOOL CHOICE CPA & ASSOCIATES

AI Summary

  • Core Issue: Management allowed over $100,000 in federal funds to be drawn without ensuring expenses were incurred first.
  • Impacted Requirements: Lack of documentation for drawdowns and approvals means we can't verify if costs were appropriate.
  • Recommended Follow-Up: Implement stricter controls for expense approvals and maintain thorough documentation for all program expenditures.

Finding Text

1. Management did not ensure related program expenditures were incurred prior to reimbursement, resulting in an overdraw of federal Program funds of approximately $100,316; 2. Documentation could not be provided to support the drawdowns performed for the Program; 3. The Academy failed to document proper approval of purchases prior to disbursement of federal funds; and 4. The Academy did not maintain documentation of expenditures charged to the Program; therefore, we could not determine if certain costs were allowable.

Corrective Action Plan

Life Academy has adopted policies and procedures to ensure compliance with Uniform Guidance Section 2 CFR, Part 200. The district only seeks reimbursement for federal expenditures; therefore, funds are not requested in advance of the expense. This process ensures drawn downs for federal disbursements occur after the expense to prevent excessive cash on hand. Anticipated Implementation Date: Implemented on October of 2024 Responsible Party: Chief School Financial Officer and Superintendent

Categories

Cash Management Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1216199 2023-002
    Material Weakness Repeat
  • 1216201 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.282 CHARTER SCHOOLS $239,555
10.555 NATIONAL SCHOOL LUNCH PROGRAM $197,172
10.553 SCHOOL BREAKFAST PROGRAM $101,762
84.027 SPECIAL EDUCATION GRANTS TO STATES $27,763
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $26,381
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $18,014