Finding 45991 (2022-014)

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

AI Summary

  • Core Issue: The School inaccurately reported federal expenditures on the Schedule of Expenditures of Federal Awards (SEFA), overstating them by $108,053.
  • Impacted Requirements: Compliance with Title 2 Code of Federal Regulations Part 200, which mandates accurate preparation of the SEFA.
  • Recommended Follow-Up: Improve internal controls to ensure proper review of journal entries related to federal program expenses and SEFA reporting.

Finding Text

2022-014: U.S. Department of Education Passed through the State of Nevada Public Charter School Authority Title I Grants to Local Educational Agencies, 84.010 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included 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 expenditures reported on the SEFA were overstated by $108,053. 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: Yes ? prior year finding 2021-002. 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.

Corrective Action Plan

Finding Number: 2022-014 ? SEFA Preparation Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy of the residual value calculations. To strengthen the oversight of financial management in the School, Academica Nevada, the School?s management company, has filled all the open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. The grant manager will reconcile all grants to ensure proper cutoff, with a secondary review performed by a member of management. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

Categories

Reporting Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 45988 2022-011
    Material Weakness
  • 45989 2022-012
    Material Weakness
  • 45990 2022-013
    Material Weakness
  • 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