Finding 497457 (2022-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-09-20
Audit: 320243
Organization: Lead Academy (AL)

AI Summary

  • Core Issue: Inadequate controls led to missing documentation for reimbursement requests, violating federal requirements.
  • Impacted Requirements: Internal controls under Uniform Guidance (2 CFR 200.303 and 200.302) were not properly established, risking compliance.
  • Recommended Follow-Up: Implement a standardized documentation system for grant reimbursements to ensure all requests are supported and properly authorized.

Finding Text

Sufficient controls were not in place for the current fiscal year to ensure that requests for reimbursement were adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 and 200.302 that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retained for three years from the final expenditure report. Requests for reimbursement and their supporting information could not be located for three of six reimbursement requests. We recommend that a standardized file and documentation system be implemented for all grant reimbursement requests containing the reimbursement request with evidence of review and authorization and including the supporting expenditure reports. The Academy responds that it has contracted with an accounting and administrative contractor who has implemented a recordkeeping system for grant reimbursement requests and related supporting documentation

Corrective Action Plan

The Uniform Guidance required that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retained for three years from the final expenditure report. Requests for reimbursement and their supporting information could not be located for three of six reimbursement requests. We recommend that a standardized file and documentation system be implemented for all grant reimbursement requests containing the reimbursement request with evidence of review and authorization and including the supporting expenditure reports. Views of Responsible Officials and Planned Corrective Actions: The Academy has contracted with an accounting and administrative contractor who has implemented a recordkeeping system for grant reimbursement requests and related supporting documentation.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 497454 2022-005
    Material Weakness Repeat
  • 497455 2022-005
    Material Weakness Repeat
  • 497456 2022-005
    Material Weakness Repeat
  • 497458 2022-006
    Material Weakness
  • 1073896 2022-005
    Material Weakness Repeat
  • 1073897 2022-005
    Material Weakness Repeat
  • 1073898 2022-005
    Material Weakness Repeat
  • 1073899 2022-006
    Material Weakness
  • 1073900 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $239,938
84.425 Education Stabilization Fund $232,746
10.553 School Breakfast Program $210,351
84.027 Special Education Grants to States $88,483
10.579 Child Nutrition Discretionary Grants Limited Availability $22,873
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $21,648
10.555 National School Lunch Program $16,447
84.424 Student Support and Academic Enrichment Program $15,880
84.048 Career and Technical Education -- Basic Grants to States $7,845
10.560 State Administrative Expenses for Child Nutrition $463
10.649 Pandemic Ebt Administrative Costs $298
96.001 Social Security Disability Insurance $60