Finding 43185 (2022-014)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-07-31
Audit: 48322
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The School inaccurately reported federal expenditures on the Schedule of Expenditures of Federal Awards (SEFA) due to weak internal controls.
  • Impacted Requirements: Compliance with Title 2 CFR Part 200, which mandates accurate reporting of federal funds.
  • Recommended Follow-up: Improve internal controls to ensure proper review of journal entries related to federal program expenses.

Finding Text

2022-014: U.S. Department of Education Passed through State of Nevada Public Charter School Authority and State of Nevada Department of Education COVID-19 Education Stabilization Fund, 84.425 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the School to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: Amounts were originally reported incorrectly on the SEFA. Cause: The School did not have adequate internal controls to provide for the review of journal entries that allocate expenses to federal programs or the SEFA to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to correction, total federal expenditures were less than $750,000 and a single audit was not required. The education stabilization fund was understated by $186,306. Questioned Costs: None noted Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to provide for the review of journal entries that allocate expenses to federal programs and the SEFA to ensure total federal expenditures are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with this finding.

Categories

Reporting Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 43176 2022-013
    Significant Deficiency
  • 43177 2022-014
    Material Weakness
  • 43178 2022-013
    Material Weakness
  • 43179 2022-014
    Material Weakness
  • 43180 2022-013
    Material Weakness
  • 43181 2022-014
    Material Weakness
  • 43182 2022-013
    Material Weakness
  • 43183 2022-014
    Material Weakness
  • 43184 2022-013
    Material Weakness
  • 619618 2022-013
    Significant Deficiency
  • 619619 2022-014
    Material Weakness
  • 619620 2022-013
    Material Weakness
  • 619621 2022-014
    Material Weakness
  • 619622 2022-013
    Material Weakness
  • 619623 2022-014
    Material Weakness
  • 619624 2022-013
    Material Weakness
  • 619625 2022-014
    Material Weakness
  • 619626 2022-013
    Material Weakness
  • 619627 2022-014
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $223,364
84.027 Special Education_grants to States $198,033
84.425 Education Stabilization Fund $75,000
84.367 Improving Teacher Quality State Grants $16,414