Finding 380855 (2023-009)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-18
Audit: 295542
Organization: Civica Nevada (NV)
Auditor: Forvis

AI Summary

  • Core Issue: The School's procurement policies lack clarity and detail to comply with federal law, leading to potential non-compliance risks.
  • Impacted Requirements: Internal controls over Procurement, Suspension, and Debarment are insufficient, resulting in unapproved vendor selections and possible transactions with suspended vendors.
  • Recommended Follow-Up: Update procurement policies to include federal requirements, document all approvals, and verify vendor status against suspension lists before transactions.

Finding Text

Procurement, Suspension and Debarment U.S. Department of Education / Passed-through Opportunity 180 Federal Assistance Listing Number 84.282B– Charter Schools (CSP) Award Number S282A200009-20A, Subgrantee Number CSP-2021-08655, Award Date 4/1/21-8/31/23 Criteria – Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition – The School has policies and procedures which make reference and are in accordance with state regulation and state law, but have not been updated with sufficient clarity and detail to ensure compliance with federal law in accordance with the Uniform Guidance. Four vendors tested did not have evidence of review and approval of the bids/quotes obtained. One vendor tested did not have evidence of review and approval of the process of verifying suspension and debarment procedures. Questioned Costs – None Context/Sampling – A non-statistical sample of four vendors was selected for testing. Cause – The School did not have adequate internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Effect or potential effect – The School may follow its documented procurement policies and not identify non-compliance with federal procurement law in cases where federal procurement law is more restrictive. The School could select a vendor without proper approval. The School could enter into a transaction with a suspended or debarred vendor. Recommendation – We recommend the School review its procurement policy and include federal procurement requirements with proper minimum and maximum thresholds and requirements of the type of bids/quotes and documentation required to meet federal compliance requirements. We recommend that the School document review and approval of all approvals and quotes/bids to ensure compliance with the Uniform Guidance. We recommend that the School maintain documentation that vendors have been verified to not be suspended or debarred before entering into a transaction with a vendor. Views of responsible officials and planned corrective actions – Going forward, as part of the process of verifying suspension and debarment a screenshot will be saved as evidence of the process. Additionally, Academica Nevada, the School’s management company, is in the process of reviewing all existing policies and procedures to ensure clarity and compliance with federal and state standards.

Corrective Action Plan

Going forward, as part of the process of verifying suspension and debarment a screenshot will be saved as evidence of the process. Additionally, Academica Nevada, the School’s management company, is in the process of reviewing all existing policies and procedures to ensure clarity and compliance with federal and state standards.Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2024

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 380848 2023-006
    Material Weakness Repeat
  • 380849 2023-007
    Material Weakness
  • 380850 2023-007
    Material Weakness
  • 380851 2023-007
    Material Weakness
  • 380852 2023-007
    Material Weakness
  • 380853 2023-008
    Material Weakness
  • 380854 2023-008
    Material Weakness
  • 957290 2023-006
    Material Weakness Repeat
  • 957291 2023-007
    Material Weakness
  • 957292 2023-007
    Material Weakness
  • 957293 2023-007
    Material Weakness
  • 957294 2023-007
    Material Weakness
  • 957295 2023-008
    Material Weakness
  • 957296 2023-008
    Material Weakness
  • 957297 2023-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.282 Charter Schools $452,991
84.010 Title I Grants to Local Educational Agencies $366,830
10.555 National School Lunch Program $345,639
84.425 Covid 19 Education Stabilization Fund $208,632
10.553 School Breakfast Program $143,224
84.365 English Language Acquisition State Grants $67,173
84.367 Improving Teacher Quality State Grants $58,162
84.027 Special Education_grants to States $3,702