Finding 384650 (2023-009)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 297711
Organization: Pinecrest Academy of Nevada (NV)
Auditor: Forvis LLP

AI Summary

  • Core Issue: Lack of internal controls led to unverified data submission for federal education grants.
  • Impacted Requirements: Compliance with reporting standards under the Uniform Guidance was not met, risking inaccurate data reporting.
  • Recommended Follow-Up: Implement stronger controls and secondary reviews for grant reporting to ensure accuracy and compliance.

Finding Text

Reporting U.S. Department of Education/Passed Through Nevada Department of Education Federal Assistance Listing Numbers 84.425C and 84.425D – COVID-19 - Education Stabilization Fund ALN 84.425C - COVID-19 - Governor's Emergency Education Relief (GEER) Fund - SBMH GEER II, Project 22-748-58000, Award Date 5/25/2022-9/30/2023 ALN 84.425D – COVID-19 – Elementary and Secondary School Emergency Relief (ESSER) Fund – SBMH ESSER II, Project 22-748-58000, Award Date 5/25/2022- 9/30/2023 Criteria – Management is responsible for internal controls over compliance with Reporting in accordance with the Uniform Guidance. Condition – There was no support maintained for the data that was submitted including FTEs, and there was no review of the report before it was submitted. Questioned Costs – None Context – The Nevada Department of Education (NDE) requires information to be reported by Local Education Agencies in order to complete the NDE’s annual ESSER Reporting. Cause – The School did not have adequate internal controls to ensure that the data reported to the NDE was accurate, that the form was completed correctly, and that a review was performed prior to submission. Effect or Potential Effect – Risk for inaccurate data to be reported to the grantor.Recommendation – We recommend the School put in place controls over reporting required by the School’s grants to ensure complete and accurate reporting in accordance with the compliance requirement. Views of Responsible Officials and Planned Corrective Actions – Due to unexpected turnover a secondary review was not performed to verify the preparation of the ESSER 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.

Corrective Action Plan

Corrective Action Plan: Due to unexpected turnover, a secondary review was not performed to verify the preparation of the ESSER 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. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2024

Categories

Internal Control / Segregation of Duties Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 384635 2023-008
    Material Weakness Repeat
  • 384636 2023-008
    Material Weakness Repeat
  • 384637 2023-008
    Material Weakness Repeat
  • 384638 2023-008
    Material Weakness Repeat
  • 384639 2023-008
    Material Weakness Repeat
  • 384640 2023-008
    Material Weakness Repeat
  • 384641 2023-008
    Material Weakness Repeat
  • 384642 2023-008
    Material Weakness Repeat
  • 384643 2023-008
    Material Weakness Repeat
  • 384644 2023-008
    Material Weakness Repeat
  • 384645 2023-008
    Material Weakness Repeat
  • 384646 2023-008
    Material Weakness Repeat
  • 384647 2023-008
    Material Weakness Repeat
  • 384648 2023-008
    Material Weakness Repeat
  • 384649 2023-008
    Material Weakness Repeat
  • 384651 2023-009
    Significant Deficiency
  • 961077 2023-008
    Material Weakness Repeat
  • 961078 2023-008
    Material Weakness Repeat
  • 961079 2023-008
    Material Weakness Repeat
  • 961080 2023-008
    Material Weakness Repeat
  • 961081 2023-008
    Material Weakness Repeat
  • 961082 2023-008
    Material Weakness Repeat
  • 961083 2023-008
    Material Weakness Repeat
  • 961084 2023-008
    Material Weakness Repeat
  • 961085 2023-008
    Material Weakness Repeat
  • 961086 2023-008
    Material Weakness Repeat
  • 961087 2023-008
    Material Weakness Repeat
  • 961088 2023-008
    Material Weakness Repeat
  • 961089 2023-008
    Material Weakness Repeat
  • 961090 2023-008
    Material Weakness Repeat
  • 961091 2023-008
    Material Weakness Repeat
  • 961092 2023-009
    Significant Deficiency
  • 961093 2023-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
32.009 Emergency Connectivity Fund Program $465,750
84.367 Improving Teacher Quality State Grants $375,581
84.287 Twenty-First Century Community Learning Centers $103,186
10.555 National School Lunch Program $93,562
84.027 Special Education_grants to States $32,502
84.048 Career and Technical Education - Basic Grants to States $21,574
84.425 Education Stabilization Fund $19,975
84.196 Education for Homeless Children and Youth $16,206
92.243 Advancing Wellness and Resiliency in Education (project Aware) $350