Finding 387682 (2023-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The School did not follow its own procurement policy, leading to a significant deficiency in compliance with federal standards.
  • Impacted Requirements: This affects compliance with procurement and suspension/debarment requirements for the CSP program, risking future federal funding.
  • Recommended Follow-Up: Management should strictly adhere to its procurement policy to ensure compliance with Uniform Guidance in future situations.

Finding Text

Finding 2023-001 Significant Deficiency and Material Instance of Non-Compliance Procurement Policy This finding impacts the procurement and suspension and debarment compliance requirement forthe major program, Assistance Listing Number 84.282 Charter Schools (CSP), funded by the U.S. Department of Education and passed-through by the Commonwealth of Massachusetts Department of Elementary and Secondary Education (DESE). Criteria: The School must follow the procurement standards set out at 2 CFR Sections 200.317. through 200.327. The School also must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable Federal statues and the procurement requirements identified in 2 CFR part 200. Condition: As part of testing the School’s compliance with Uniform Guidance procurement standards, we reviewed the School’s procurement policy against Uniform Guidance standards and tested three transactions totaling approximately $378,000 for evidence of competitive bids. While the School maintains a procurement policy in accordance with Uniform Guidance standards, the School did not maintain evidence of bids in accordance with its procurement policy. Cause: The School had a limited amount of time to apply for and spend the CSP funds and open its high school with the goods that were purchased. This led to the School not following its existing procurement policy. Effect: Non-compliance with the Uniform Guidance, potentially resulting in a decrease in Federal Funding. The finding did not result in any questioned costs as evidence of purchases was maintained. Repeat Finding: No. Recommendation: AAFCPAs recommends that management follows its procurement policy which complies with Uniform Guidance. Management Response: Management prioritized being equipped for the opening of school with students when faced with a tight timeline to apply for and expend grant funds. In a time when delays on goods and services were normalized, management moved forward with a furniture order that met all of our operational needs including a guaranteed delivery timeline that included assembly and setup as well as the quality and aesthetic of the furniture we were confident with. In doing so, we did not ensure full compliance with the School's procurement process. Management remains confident in the School's procurement policies and if ever a similar, albeit atypical, situation should arise we will ensure compliance with the School's procurement policies. Management understands that following the School's procurement policy, which complies with Uniform Guidance, is necessary so as not to jeopardize future funding opportunities.

Corrective Action Plan

October 19, 2023 Cognizant or Oversight Agency for Audit Veritas Prep Charter School respectfully submits the following corrective action plan for the year ended June 30, 2023. AAFCPAs 50 Washington Street Westborough, MA 01581 Audit period: July 1, 2022-June 30, 2023 The finding from the June 30, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Significant Deficiency and Material Instance of Non-Compliance DEPARTMENT OF EDUCATION 2023-001 Assistance Listing Number 84.282 Charter Schools (CSP) Recommendation: AAFCPAs recommends that management follows its procurement policy which complies with Uniform Guidance requirements. Action Taken: Management prioritized being equipped for the opening of school with students when faced with a tight timeline to apply for and expend grant funds. In a time when delays on goods and services were normalized, management moved forward with a furniture order that met all of our operational needs including a guaranteed delivery timeline that included assembly and setup as well as the quality and aesthetic of the furniture we were confident with. In doing so, we did not ensure full compliance with the School's procurement process. Management remains confident in the School's procurement policies and if ever a similar, albeit atypical, situation should arise we will ensure compliance with the School's procurement policies. Management understands that following the School's procurement policy, which complies with Uniform Guidance, is necessary so as not to jeopardize future funding opportunities. If the Department of Education has questions regarding this plan, please call Rachel Romano #413-222-3434. Sincerely yours, Rachel Romano Chief Executive Officer Veritas Preparatory Charter School

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 964124 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Covid - 19 Education Stabilization Fund $583,985
84.282 Charter Schools $581,166
84.010 Title I Grants to Local Educational Agencies $567,281
84.027 Special Education Grants to States $154,885
32.009 Covid-19 Emergency Connectivity Fund Program $38,425
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $33,648
84.424 Student Support and Academic Enrichment Program $30,328
21.027 Covid-19 Coronavirus State and Local Fiscal Recover Funds $27,000
93.092 Affordable Care Act (aca): Personal Responsibility Education Program $25,000