FAC Explorer

Finding 517228 (2024-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2024-12-31
Audit: 335212
Organization: Believe Schools, Inc. and Affiliate (IN)
Auditor: Donovan PC

AI Summary

  • Core Issue: The School failed to keep necessary records for meal reimbursement claims, violating federal retention requirements.
  • Impacted Requirements: Records must be retained for three years as per 7 CFR 200.334, affecting compliance with federal funding regulations.
  • Recommended Follow-Up: Implement internal controls to ensure proper documentation of meals served for each claim submitted.

Finding Text

FINDING 2024-001 DOCUMENT RETENTION SIGNIFICANT DEFICIENCY Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553 & 10.555 Criteria Per 7 CFR 200.334, “Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.” Condition Two claims for meal reimbursement were selected for testing. The School was unable to provide records of meals served. The School qualified for the Community Eligibility Provision program and all students receive free meals. Meals claimed were below the maximum that could have been claimed had all students obtained school meals each day of the periods under review. No determination of questioned costs could be made. Cause The School did not maintain documentation for each individual claim. Effect Reconciliation of meals served data to individual claims was not possible. Recommendation We recommend the School develop internal controls requiring the maintenance of documentation of meals served for the individual claims submitted for the program. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.

Corrective Action Plan

To Whom it may concern: This document serves as the response to the 2023-2024 Financial Audit on behalf of BELIEVE Schools, Inc. We’ve identified and addressed the comments that were included in the Uniform Guidance Major Program Findings. Please review the corrective action items in response to the Audit Results and Comments: Education Stabilization Fund (ESSER Grant): The school was unable to provide construction contracts to allow auditors to verify that the required Davis-Bacon Act wording was included. ● The Principal, Angel Jackson-Anderson, and Dean of Operations, Kayla Marshall, will ensure that the proper contracts are received and filed for all services conducted under ESSER grants. Child Nutrition: The school did not maintain tally sheets to support the number of meals served. ● The Dean of Operations, Kayla Marshall, will ensure that the proper physical files (tally sheets) are maintained and filed monthly, both in digital and paper form. The principal will review these files monthly to ensure documents are not lost or misplaced. If you have any questions, concerns, or comments, please feel free to contact me the school principal, Angel Jackson-Anderson, Aanderson@believeschools.org. Many thanks, Angel Jackson-Anderson Principal, BELIEVE Circle City High School Kayla Marshall Dean of Operations, BELIEVE Circle City High School www.believeschools.org @believeschoolsindy admin@believeschools.org 317-296-1954 Angel Jackson-Anderson 11/07/2024 02:25PM UTC

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Cash Management Eligibility School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 517229 2024-001
    Significant Deficiency
  • 517230 2024-002
    Significant Deficiency
  • 517231 2024-002
    Significant Deficiency
  • 517232 2024-002
    Significant Deficiency
  • 1093670 2024-001
    Significant Deficiency
  • 1093671 2024-001
    Significant Deficiency
  • 1093672 2024-002
    Significant Deficiency
  • 1093673 2024-002
    Significant Deficiency
  • 1093674 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $165,731
84.282 Charter Schools $137,399
84.425 Education Stabilization Fund $77,788
84.010 Title I Grants to Local Educational Agencies $70,496
10.553 School Breakfast Program $33,732
84.424 Student Support and Academic Enrichment Program $11,750
84.367 Improving Teacher Quality State Grants $3,000
84.027 Special Education_grants to States $1,418
84.365 English Language Acquisition State Grants $1,295