Finding 574829 (2021-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2021

Accepted

2025-08-27

Audit: 365110

Organization: Storefront Academy Charter School Dba Storefront Academy Charter School South Bronx (NY)

Auditor: Forvis Mazars LLP

AI Summary

Core Issue: The school failed to conduct a required physical inventory of federally funded property.
Impacted Requirements: This violates the federal guideline of performing inventory reconciliations every two years as per 2 CFR Section 200.313.
Recommended Follow-Up: Implement stronger controls and procedures for equipment management to ensure compliance moving forward.

Finding Text

Program: Charter School Programs Assistance Listing Number: 84.282 Federal Agency: U.S. Department of Education Pass-Through Grantor: New York State Education Department Award Identification: C403558 Criteria: Equipment and Real Property Management – The School must perform a physical inventory of federally funded property, and the results must be reconciled with property records at least once every two years. 2 CFR Section 200.313 Condition: During the course of our audit procedures performed on equipment and real property management, it was noted that management did not perform a physical inventory of federally funded property. Questioned costs: None Context: Management was unable to provide documentation to support that a physical inventory was performed. Effect: We were unable to verify compliance with equipment and real property management requirements. Cause: The School did not have adequate controls and procedures in place related to equipment and real property management. Repeat finding: This is not a repeat finding.

Corrective Action Plan

Management agrees with finding 2021-002 and will implement internal control procedures to perform inventory inspections of federally funded equipment and reconcile the results of the inspections to our equipment listing on a bi-annual basis. We will also implement procedures to add physical tags to federally funded equipment. This inventory will be performed by Storefront’s Technology Supervisor and reported back to the Director of Operations and Financial Consultant for review.

Other Findings in this Audit

1151271 2021-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.282	Charter Schools	$478,654
84.010	Title I Grants to Local Educational Agencies	$301,929
84.425D	Education Stabilization Fund	$211,170
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$48,094
84.365	English Language Acquisition State Grants	$31,079
84.424	Student Support and Academic Enrichment Program	$25,662