FAC Explorer

Finding 518416 (2024-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-01-09
Audit: 336793
Organization: Somerset Academy of Las Vegas (NV)
Auditor: Rubinbrown LLP

AI Summary

  • Core Issue: The School lacks adequate documentation showing principal approval for payroll expenses, violating federal compliance requirements.
  • Impacted Requirements: This affects adherence to the Uniform Guidance in 2 CFR Section 200.303, which mandates proper internal controls for federal fund management.
  • Recommended Follow-Up: Ensure all payroll transactions have documented principal approvals before processing, and implement a system to track these approvals effectively.

Finding Text

2024 -002 Approval Of Payroll Expense Transactions - Significant Deficiency - Activities Allowed Or Unallowed And Allowable Costs/Cost Principles ALNs 10.555/10.553 - Child Nutrition Cluster, 21.027 - Coronavirus State and Local Fiscal Recovery Funds, 84027 - Special Education, IDEA B (SPED) And 84.425/84.425C/84.425D/84.425U Education Stabilization Fund (ESSER) Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The School has an internal control in place that payroll transactions are approved by the respective principal prior to their submission for payment Condition: During the course of the audit, the engagement team identified multiple expenditures where the support showing the principal’s approval of the federal grant expense was unable to be provided. Cause: The entity did not maintain sufficient support documentation to prove that expenditures were reviewed before payroll transactions were submitted for payment. Effect: Potential noncompliance could occur if expenditure amounts are not reviewed by the principal for accuracy and completeness. Questioned Costs: Not applicable. Context: These audit findings represent a systemic issue. Identification As A Repeat Finding: Not applicable. Recommendation: The School should maintain proper documentation of approvals for all payroll transactions. View Of Responsible Officials: A process was put in place in January 2024 to ensure that all principal approvals are documented in writing or electronic approval in the system which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.

Categories

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 518403 2024-002
    Significant Deficiency
  • 518404 2024-002
    Significant Deficiency
  • 518405 2024-002
    Significant Deficiency
  • 518406 2024-002
    Significant Deficiency
  • 518407 2024-002
    Significant Deficiency
  • 518408 2024-002
    Significant Deficiency
  • 518409 2024-002
    Significant Deficiency
  • 518410 2024-002
    Significant Deficiency
  • 518411 2024-002
    Significant Deficiency
  • 518412 2024-002
    Significant Deficiency
  • 518413 2024-002
    Significant Deficiency
  • 518414 2024-002
    Significant Deficiency
  • 518415 2024-002
    Significant Deficiency
  • 518417 2024-002
    Significant Deficiency
  • 518418 2024-002
    Significant Deficiency
  • 518419 2024-002
    Significant Deficiency
  • 1094845 2024-002
    Significant Deficiency
  • 1094846 2024-002
    Significant Deficiency
  • 1094847 2024-002
    Significant Deficiency
  • 1094848 2024-002
    Significant Deficiency
  • 1094849 2024-002
    Significant Deficiency
  • 1094850 2024-002
    Significant Deficiency
  • 1094851 2024-002
    Significant Deficiency
  • 1094852 2024-002
    Significant Deficiency
  • 1094853 2024-002
    Significant Deficiency
  • 1094854 2024-002
    Significant Deficiency
  • 1094855 2024-002
    Significant Deficiency
  • 1094856 2024-002
    Significant Deficiency
  • 1094857 2024-002
    Significant Deficiency
  • 1094858 2024-002
    Significant Deficiency
  • 1094859 2024-002
    Significant Deficiency
  • 1094860 2024-002
    Significant Deficiency
  • 1094861 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $729,093
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $689,285
21.027 Coronavirus State and Local Fiscal Recovery Funds $376,436
10.555 National School Lunch Program $285,714
10.553 School Breakfast Program $85,230
84.424 Student Support and Academic Enrichment Program $76,020
84.425 Education Stabilization Fund $20,458
10.185 Local Food for Schools Cooperative Agreement Program $20,271
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $17,050
10.579 Child Nutrition Discretionary Grants Limited Availability $11,764
84.027 Special Education Grants to States $7,675
84.196 Education for Homeless Children and Youth $5,000
84.365 English Language Acquisition State Grants $305