Finding 49968 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-07
Audit: 43577
Organization: C.s. Lewis Academy (UT)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: C.S. Lewis Academy failed to submit required financial reports to the USDA, indicating a material weakness in internal controls.
  • Impacted Requirements: The Academy did not have policies to ensure compliance with USDA reporting obligations.
  • Recommended Follow-Up: Implement procedures to ensure timely submission of audited financial statements and budgetary information to the USDA.

Finding Text

U.S. Department of Agriculture, Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Compliance Requirements Material Weakness in Internal Control Over Compliance and Noncompliance Criteria: C.S. Lewis Academy should have policies and procedures in place to ensure audited financial statements and budgetary information are submitted annually to the USDA. Condition: In connection with the audit procedures performed, it was noted that the required reports were not submitted to the USDA. C.S. Lewis Academy?s system of internal control did not include procedures related to reporting to the USDA. Cause: C.S. Lewis Academy was unaware of the requirement to provide the required reports to the USDA. Effect: The School is not in compliance with USDA loan requirements. Questioned Costs: None reported Context: In connection with the audit procedures performed, it was noted that the required reports were not submitted to the USDA. Repeat Finding from Prior Years: No Recommendation: C.S. Lewis Academy should submit the required audited financial statements and budgetary information to the USDA. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Finding 2022-001 Finding Summary: C.S. Lewis Academy is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Responsible Individuals: Diane Nelson, Executive Director and Nate Adams, Business Manager Corrective Action Plan: Management will provide a copy of the audited financial statements and copy of the proposed budget to USDA annually. Anticipated Completion Date: Ongoing Anticipated Completion Date: Management will ensure all necessary corrective action plan items are in place by the end of 2022.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 626410 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $3.48M
10.555 National School Lunch Program $186,819
84.425 Education Stabilization Fund $169,697
10.553 School Breakfast Program $85,814
84.010 Title I Grants to Local Educational Agencies $79,812
84.027 Special Education_grants to States $52,822
84.424 Title IV Student Support and Academic Enrichment Program $10,000
84.367 Title Iia Improving Teacher Quality 212ft $8,992
84.031 Title Iiia-Strengthening Institutions $6,891
84.173 Special Education_preschool Grants $0