FAC Explorer

Finding 1222572 (2024-003)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2026-06-30
Audit: 406173
Organization: LIFE Academy (AL)
Auditor: SCHOOL CHOICE CPA & ASSOCIATES

AI Summary

  • Core Issue: Management did not verify that expenses were incurred before reimbursement, leading to unsupported drawdowns.
  • Impacted Requirements: Lack of documentation for approvals and expenditures means compliance with federal funding rules is at risk.
  • Recommended Follow-Up: Implement a system to ensure all expenses are documented and approved before funds are disbursed.

Finding Text

1. Management did not ensure related program expenditures were incurred prior to reimbursement; 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

  • 1222571 2024-002
    Material Weakness Repeat
  • 1222573 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $1.14M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $279,247
84.282 CHARTER SCHOOLS $239,555
84.027 SPECIAL EDUCATION GRANTS TO STATES $120,193
10.553 SCHOOL BREAKFAST PROGRAM $83,833
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $29,794
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $18,992