Finding 1225534 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-08-03

AI Summary

  • Core Issue: The School lacks internal controls for preparing the Schedule of Expenditures of Federal Awards, leading to incomplete reporting.
  • Impacted Requirements: The School must comply with the Uniform Grant Guidance for accurate federal expenditure reporting.
  • Recommended Follow-Up: Implement ongoing procedures to ensure all federal expenditures are identified and accurately reported throughout the year.

Finding Text

Lack of Internal Controls over the Preparation of the Schedule of Expenditures and Federal Awards (Significant Deficiency) Federal Program: COVID-19 Education Stabilization Fund (ARP ESSER) – 84.425U Criteria: The School is required to prepare a schedule of expenditures of federal awards in accordance with the Uniform Grant Guidance. Internal controls must be in place to ensure the School properly reports all federal expenditures and related information on this schedule. Condition: The School failed to properly identify all federal grant expenditures and related information required by Uniform Grant Guidance to be reported in the June 30, 2024 schedule of expenditures of federal awards. Context: The School failed to provide a Schedule of Expenditures of Federal Awards in accordance with the Uniform Grant Guidance. Cause: The School lacks a system of proper internal controls over the completeness of the information reported on the schedule of expenditures of federal awards. Effect or Potential Effect: The schedule of expenditures of federal awards did not include all federal program expenditures during the fiscal year ended June 30, 2024. Recommendation: We recommend the School institute procedures to ensure that an accurate and complete schedule of expenditures of federal awards is maintained. The School should prepare and update the schedule on an ongoing basis throughout the year. View of Responsible Officials and Planned Corrective Action: The School will institute procedures to ensure that all federal expenditures are identified and accurately reported on the schedule of expenditures of federal awards.

Corrective Action Plan

Description of Finding: The School failed to properly identify all federal grant expenditures and related information required by Uniform Grant Guidance to be reported in the June 30, 2024 schedule of expenditures of federal awards. Statement of Concurrence or Nonconcurrence: The School acknowledges the audit finding related to internal controls over the preparation of the Schedule of Expenditures of Federal Awards. The School recognizes the importance of properly identifying and reporting all federal award expenditures in accordance with the Uniform Guidance. Corrective Action: To address this finding, the School, with assistance from its contracted accounting and management firm, will track federal award revenues and expenditures separately in the general ledger. The School and the contracted accounting and management firm will use appropriate general ledger accounts, grant codes, project codes, or other tracking mechanisms to separately identify federal award activity from state, local, and other non-federal activity. The School, with assistance from the contracted accounting and management firm, will prepare a Schedule of Expenditures of Federal Awards at the end of each fiscal year, as required. The schedule will be prepared using the federal award revenues and expenditures tracked in the general ledger and will be reviewed against available supporting documentation, including grant award documents, reimbursement requests, drawdown records, funding agency reports, and other applicable grant documentation. The School will maintain supporting documentation for the amounts reported on the Schedule of Expenditures of Federal Awards. Management will review the schedule for completeness and accuracy before it is provided to the auditors. Projected Completion Date: The School has hired an outside accounting and management firm effective July 1, 2025. The School is currently working with the firm on the corrective actions outlined here. The School does not anticipate a single audit requirement moving forward.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1225523 2024-002
    Material Weakness Repeat
  • 1225524 2024-004
    Material Weakness Repeat
  • 1225525 2024-005
    Material Weakness Repeat
  • 1225526 2024-002
    Material Weakness Repeat
  • 1225527 2024-003
    Material Weakness Repeat
  • 1225528 2024-004
    Material Weakness Repeat
  • 1225529 2024-005
    Material Weakness Repeat
  • 1225530 2024-002
    Material Weakness Repeat
  • 1225531 2024-003
    Material Weakness Repeat
  • 1225532 2024-004
    Material Weakness Repeat
  • 1225533 2024-005
    Material Weakness Repeat
  • 1225535 2024-003
    Material Weakness Repeat
  • 1225536 2024-004
    Material Weakness Repeat
  • 1225537 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $149,847
84.027 SPECIAL EDUCATION GRANTS TO STATES $55,140
10.553 SCHOOL BREAKFAST PROGRAM $28,238
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $13,754
10.555 NATIONAL SCHOOL LUNCH PROGRAM $12,400
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $12,308
84.425 EDUCATION STABILIZATION FUND $3,615
10.649 PANDEMIC EBT ADMINISTRATIVE COSTS $653