Finding Reference Number: 84.425U ARP ESSER
Description of Finding:
Vertus Charter School was required to submit the Education Stabilization Fund Annual Reporting to New York State Education Department. It was found that Vertus Charter completed the reporting based on cash expenditures made during the required period of July 1, 2022, to June 30, 2023, and not based on the cash expenditures related to cash received during the stated required reporting period. Statement of Concurrence or Nonconcurrence:
Vertus Charter School agrees with the audit finding.
Corrective Action:
Immediate Actions Taken:
1. Upon identification of the issue, the organization immediately reviewed the instructions to complete the Education Stabilization Fund Annual Reporting and compared it to the report submitted to identify the discrepancy.
2. The organization will determine appropriate steps to correct the report and/or other actions based on guidance provided by New York State Education Department.
Root Cause Analysis: The reporting error occurred because there was a misinterpretation of the reporting methodology required to file the ESF Annual Report. Instead, the organization used the reporting methodology required to file the Annual ESSA Financial Transparency Report – Charter School Actual Expenditures, whereby the actual cash expenditures made during the reporting period are reported, vs. reporting expenditures made using the cash received under the program during the reporting period.
Planned Actions to Prevent Recurrence:
1. Training for Staff:
a. All staff responsible for preparing and submitting financial reports will undergo mandatory training on federal reporting requirements.
Responsible Party: Outsourced Chief Financial Officer
Timeline: Complete by January 15, 2025
2. Revised Reporting Procedures:
a. The organization will ensure that information reported in the ESF Annual Report is based on the correct accounting methodology in accordance with instructions from the New York State Education Department and the U.S. Department of Education requirements.
Responsible Party: Outsourced Chief Financial Officer
Timeline: Effective immediately
Name of Contact Person:
Julie Locey, Chief Education Officer, 585-747-8911. jlocey@vertusschool.org
Projected Completion Date:
All corrective actions will be completed by February 15, 2025.
If there are any questions regarding this Plan, please call me at 585-747-8911.