Finding 49729 (2022-012)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-07-30
Audit: 43510
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The School's procurement policies lack clarity and detail to meet federal requirements, risking non-compliance.
  • Impacted Requirements: All grant awards under assistance listing 84.282 must adhere to Title 2 U.S. CFR Part 200, which mandates documented procurement procedures.
  • Recommended Follow-Up: The School should update its procurement policy to incorporate federal procurement requirements and ensure compliance.

Finding Text

2022-012: U.S. Department of Education Passed through Opportunity 180 Charter Schools, 84.282 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 84.282 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non-federal entity must use its own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procedures conform to applicable federal law and standards. Condition: The School has policies and procedures which make reference to state regulation and law, but the policies have not been updated with sufficient clarity and detail to ensure compliance with federal law and standards. Cause: The School did not have adequate internal controls to review its policy and procedures to include federal procurement requirements. Effect: The School may follow its documented procurement policies and not identify non-compliance with federal procurement law in cases where federal procurement law is more restrictive. Questioned Costs: None noted Context/Sampling: The School?s procurement procedures were examined in their entirety. Repeat Finding from Prior Year: No Recommendation: We recommend the School review its procurement policy and include federal procurement requirements. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Finding Number: 2022-012 ? Procurement, Suspension, and Debarment Corrective Action Plan: Academica Nevada, the School?s management company, and the School will complete an update of the procurement policies to ensure that federal law and standards are clearly detailed and defined. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 49728 2022-011
    Material Weakness
  • 49730 2022-013
    Material Weakness
  • 626170 2022-011
    Material Weakness
  • 626171 2022-012
    Material Weakness
  • 626172 2022-013
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.282 Charter Schools $396,587
10.555 National School Lunch Program $216,904
10.553 School Breakfast Program $46,115
84.425 Education Stabilization Fund $41,235
84.367 Improving Teacher Quality State Grants $18,475
84.027 Special Education_grants to States $10,171