Finding Text
U.S. Department of Education/Passed Through State of Nevada Public Charter School
Authority
Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a)
FY23 Title I, Part A – Award Date 7/1/22-9/30/23
FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23
FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23
Criteria – Management is responsible for internal controls over compliance with
Level of Effort – Maintenance of Effort in accordance with the Uniform Guidance.
Condition – The School incorrectly calculated Maintenance of Effort and there was no
documentation of review by an individual independent of the preparation of the
calculation.
Questioned Costs – None
Context/Sampling – Maintenance of Effort reporting is required to be filed annually.
FORVIS tested the annual calculation performed during the fiscal year ended
June 30, 2023.
Cause – The School did not have adequate internal controls to ensure review of
Maintenance of Effort reporting was performed and documented prior to
submission. Maintenance of Effort was not calculated correctly due to the financial
data used in the calculation being on a different basis of accounting and including
incorrect financial statement line items.
Effect or potential effect – Inaccurate data was provided to the grantor.
Recommendation – We recommend the School create a standard template to prepare
the Maintenance of Effort calculation indicating which specific financial statements
and line items to include in the calculation to allow for consistent and accurate
reporting in accordance with the compliance requirement and policies and
procedures to ensure that the calculation and report are reviewed by someone
knowledgeable of the requirements prior to submission.
Views of responsible officials and planned corrective actions – Due to unexpected
turnover, a secondary review was not performed to verify the preparation of the
Maintenance of Effort reporting. To strengthen the oversight of financial
management of the School, Academica Nevada, the School’s management
company, filled all open positions and realigned staff responsibilities to reduce
individual workloads and provide additional oversight and review. In addition, a
financial controller has been added to ensure that secondary reviews occur on all
required filings and reconciliations.