Finding 526569 (2023-005)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-03-11
Audit: 345521

AI Summary

  • Core Issue: Inadequate internal controls led to 18 expenditures lacking proper review and approval.
  • Impacted Requirements: Compliance with Uniform Guidance on Activities Allowed or Unallowed and Allowable Costs.
  • Recommended Follow-Up: Ensure all expenditures have documented review and approval to prevent unallowable costs.

Finding Text

Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Repeat Finding 2022-013) Education Stabilization Fund (ESF) (COVID-19) Federal Assistance Listing Numbers (ALN) 84.425, 84.425C, 84.425D, 84.425U U.S. Department of Education/Passed Through State of Nevada Department of Education and State of Nevada State Public Charter School Authority ALN 84.425 – Elementary and Secondary School Emergency Relief – (CRRSA ESSER II) Fund (COVID-19), APP-01370-K4G4-A2, Award Date January 15, 2021 through September 30, 2023 ALN 84.425U – American Rescue Plan – Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (COVID-19), APP-01611-D3G3-A1 – Award Date July 1, 2021 through September 30, 2024 ALN 84.425U – American Rescue Plan – Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Final One-Third Allocation (COVID-19), Award Date July 1, 2022 through September 30, 2024 U.S. Department of Education/Passed Through State of Nevada Department of Education ALN 84.425C – Governor’s Emergency Education Relief (GEER) Fund – SBMH GEER II (COVID-19), Project 22-748-66436, Award Date October 1, 2021 through September 30, 2023 ALN 84.425D – Elementary and Secondary School Emergency Relief (ESSER) Fund – SBMH ESSER II (COVID-19), Project 22-748-66436, Award Date October 1, 2021 through September 30, 2023 Criteria – Management is responsible for internal controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance with the Uniform Guidance. Condition – 18 expenditures tested did not have evidence of review and approval. Two requests for reimbursement cost submissions tested did not have evidence of review and approval of the submission. Questioned Costs – None Context/Sampling – A non-statistical sample of 26 expenditures out of 167 expenditures was selected for testing. We also tested the corresponding cost reimbursement submission for each expenditure tested. Cause – The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect or Potential Effect – Unallowable costs may be charged to the program and submitted for reimbursement and not be detected by the School. Recommendation – We recommend the School document review and approval of all expenditures to ensure compliance with the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions – A process was put in place in May 2023 to ensure 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

Other Findings in this Audit

  • 526564 2023-004
    Material Weakness
  • 526565 2023-004
    Material Weakness
  • 526566 2023-005
    Material Weakness Repeat
  • 526567 2023-005
    Material Weakness Repeat
  • 526568 2023-005
    Material Weakness Repeat
  • 526570 2023-005
    Material Weakness Repeat
  • 1103006 2023-004
    Material Weakness
  • 1103007 2023-004
    Material Weakness
  • 1103008 2023-005
    Material Weakness Repeat
  • 1103009 2023-005
    Material Weakness Repeat
  • 1103010 2023-005
    Material Weakness Repeat
  • 1103011 2023-005
    Material Weakness Repeat
  • 1103012 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $220,790
84.425 Education Stabilization Fund $56,766
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $24,529
84.027 Special Education Grants to States $11,950
10.555 National School Lunch Program $1,517