Finding 45990 (2022-013)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-09
Audit: 41067
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The School reported inaccurate per pupil expenditure data to the State Educational Agency, lacking proper internal controls for review and reconciliation.
  • Impacted Requirements: Compliance with OMB guidelines for submitting accurate financial data under grant award number 84.010.
  • Recommended Follow-up: Enhance internal controls to ensure thorough review and reconciliation of the NRS 387.303 Report.

Finding Text

2022-013: U.S. Department of Education Passed through the State of Nevada Public Charter School Authority Title I Grants to Local Educational Agencies, 84.010 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 84.010 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires local educational agencies (LEAs) to submit per pupil expenditure data to the state educational agency (SEA). The SEA determines the format of the data submissions. The School is required to submit per pupil expenditure data via the NRS 387.303 Report. Condition: The information reported to the SEA did not agree to the underlying records and there was no evidence of review and approval. Cause: The School did not have adequate internal controls to ensure review of the NRS 387.303 Report and that a reconciliation was maintained. Effect: Amounts reported to the SEA were inaccurate. Questioned Costs: None noted Context/Sampling: No sampling was performed; the annual report submitted for the fiscal year ended June 30, 2021 (submitted in fiscal year 2022) was tested in its entirety. The following unreconciled variances were noted, in the aggregate: Total Reported Total Supported by Records Total Weighted Enrollment 439.10 437.36 Total Actual FTE 56.75 50 Total Major Fund Revenue $4,463,145 $4,551,727 Total Salaries $1,950,326 $1,908,607 Total Benefits $822,343 $706,412 Total Other Expenditures $1,567,180 $1,667,765 Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of the NRS 387.303 Report and that a reconciliation is maintained. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Finding Number: 2022-013 ? Reporting Corrective Action Plan: A process has been put in place for the school principal to review the Per Pupil Expenditure Report prior to submission to the grantor. Approval is evidenced by email sent by principal to the Director of Grant Management, which is saved with the Per Pupil Expenditure Report as support. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 45988 2022-011
    Material Weakness
  • 45989 2022-012
    Material Weakness
  • 45991 2022-014
    Material Weakness Repeat
  • 45992 2022-011
    Material Weakness
  • 45993 2022-012
    Material Weakness
  • 45994 2022-013
    Material Weakness
  • 45995 2022-014
    Material Weakness Repeat
  • 622430 2022-011
    Material Weakness
  • 622431 2022-012
    Material Weakness
  • 622432 2022-013
    Material Weakness
  • 622433 2022-014
    Material Weakness Repeat
  • 622434 2022-011
    Material Weakness
  • 622435 2022-012
    Material Weakness
  • 622436 2022-013
    Material Weakness
  • 622437 2022-014
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $158,800
84.010 Title I Grants to Local Educational Agencies $138,523
10.553 School Breakfast Program $82,710
84.425 Education Stabilization Fund $75,000
84.367 Improving Teacher Quality State Grants $35,712
84.365 English Language Acquisition State Grants $24,045
84.027 Special Education_grants to States $17,962
84.424 Student Support and Academic Enrichment Program $15,525