Finding 21630 (2022-001)

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Requirement
AB
Questioned Costs
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Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: Charter School grant expenses of $192,517 were incorrectly recorded in the General Fund instead of the Special Revenue Fund.
  • Impacted Requirements: This misclassification violates the Uniform Guidance 2 CFR 200.302(b-2) regarding accurate financial reporting for Federal awards.
  • Recommended Follow-Up: Improve coordination between reimbursement and recording functions, and ensure timely reconciliation of reimbursement reports with financial records.

Finding Text

Criteria In accordance with the Uniform Guidance 2 CFR 200.302(b-2), ?The financial management system of each non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in 200.328 and 200.329.? Condition We noted the following during our audit. 1. Charter School grant expenses amounting to $192,517 were recorded as General Fund expense instead of as a revenue and expense in the Special Revenue Fund. Of which $70,240 were recorded as General Fund expense instead of as a revenue and expense in the Special Revenue Fund. A prior period adjustment was required to reimburse the General Fund for the grant expense. 2. Charter School grant expenses incurred and claimed during the fiscal year ended June 30, 2022 amounting to $212,619 were recorded in the General Fund and not in the Special Revenue Fund. Context Details of the reimbursements for the grant did not agree with the details recorded in the Special Revenue Fund. Cause There was delay in the reconciliation of reimbursement requests with expenditures recorded in the Special Revenue Fund and General Fund. Effect Various journal entries were recorded and trial balance revisions were made to correct recorded expenses in the Special Revenue Fund, including a prior period adjustment of $70,240 to increase net position of the General Fund net position at July 1, 2021. Questioned Cost None. Recommendation The Charter School should ensure that there is a smooth coordination between the reimbursement and recording functions. The Charter School should also ensure timely reconciliation of reimbursement reports and records.

Corrective Action Plan

Corrective Action Purchased orders will be prepared with the correct accounting code to reflect expenditures in the right budget line items. Person(s) Responsible Shontell McQueen, Finance Coordinator; Leslie Baynes,Chief Finance Office; Bima Baje, School Business Administrator Planned Completion Date As of July 2022, corrective action has been implemented.

Categories

Cash Management Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.282 Charter Schools Program Grant $581,561
84.010 Title I Part A Grants to Local Educational Agencies $211,235
10.555 Covid-19 - National School Lunch Program - Sso $168,216
84.425 Covid-19 - American Rescue Plan - Esser $133,697
10.553 Covid-19 - School Breakfast Program - Sso $69,445
84.027 Individuals with Disabilities - States Grant $69,183
84.425 Covid-19 - Crrsa Esser II - Mental Health $40,592
84.425 Covid-19 - Crrsa Esser II - Learning Acceleration $25,131
10.649 Covid-19 - Pandemic Ebt Administrative Costs $17,679
84.425 Covid-19 - Crrsa Esser II $3,850
10.559 Covid-19 - Seamless Summer Option - Food $3,796
10.559 Covid-19 - Seamless Summer Option - Admin $390