Finding 513671 (2024-001)

Identification of the Federal Program U.S. Department of Education: AL 84.425D ESSER II – Elementary and Secondary School Emergency Relief Fund & AL 84.425U ARP ESSER – American Rescue Plan - Elementary and Secondary School Emergency Relief Passed through New York State Education Department – as shown on the Schedule of Federal Expenditures Compliance Requirement: Reporting Criteria The Charter School is required to submit an annual report to New York State Education Department - the Education Stabilization Fund Annual Reporting - to provide required information which is then utilized by NYSED to complete the U.S. Department of Education ESF – ESSER Recipient Data Collection Form. A critical component of this report is the accurate reporting of the Charter School’s number of positions supported with ESSER funds and expenditures by ESSER subgrant and accounting object for the period from July 1, 2022, to June 30, 2023, and was required to be filed by February 15, 2024. In accordance with the instructions for completing the form, expenditures are defined as the reimbursement payments received by the Charter School during the reporting period. Statement of condition and cause During our audit, we noted the Charter School inaccurately reported expenditures on the Education Stabilization Fund Annual Reporting for the period from July 1, 2022 to June 30, 2023 as a result of reporting the expenditures during the reporting period for ESSER II under the ESSER I column. We also noted that ESSER III Set-Aside expenditures were reported, however, there were no ESSER III expenditures during the reporting period. Furthermore, the U.S. Department of Education ESF – ESSER Recipient Data Collection Form was filed late, on February 24, 2024. Management’s internal controls over compliance with respect to this report did not allow management to detect and correct the error on a timely basis. Effect As a result, the information reported to the pass-through entity (NYSED) on the Education Stabilization Fund Annual Reporting was incorrect. This could lead to errors in the amounts ultimately reported to the U.S. Department of Education by NYSED. Questioned Costs N/A Repeat Finding No Recommendation We recommend the Charter School implement procedures to ensure the reporting of expenditures is accurate in the Education Stabilization Fund Annual Reporting. This will ensure the information is shown in accordance with the instructions for the NYSED report and the related U.S. Department of Education requirements. Management response We agree with the finding and recommendation. We will implement procedures to ensure that future reporting of expenditures on this required report is accurate.