Finding 596698 (2022-013)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-08-09
Audit: 20771
Organization: Doral Academy of Nevada (NV)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Lack of independent review for costs charged to federal programs, leading to potential unallowable expenses.
  • Impacted Requirements: Violates Title 2 U.S. CFR Part 200, which mandates effective internal controls and segregation of duties.
  • Recommended Follow-Up: Enhance internal controls to ensure all costs are reviewed and documented properly.

Finding Text

2022-013: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster: National School Lunch Program, 10.555 U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 10.555, 84.282, and 84.425 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Child Nutrition Cluster, 10.555 A non-statistical sample of 26 transactions out of a population of 134 was selected for testing. There was no evidence of review on any of the 26 transactions tested. These 26 transactions totaled $183,657 out of the total expenditure population of $1,046,140. Charter Schools, 84.282 A non-statistical sample of nine goods and services transactions out of a population of 40 and the total population of two payroll transactions was selected for testing. There was no evidence of review on either of the two payroll transactions tested. These two payroll transactions totaled $39,049 out of the total expenditure population of $363,680. Education Stabilization Fund, 84.425 A non-statistical sample of 60 goods and services transactions out of a population of 245 and a non-statistical sample of 60 payroll transactions out of a population of 1920 was selected for testing. There was no evidence of review on any of the 120 transactions tested. These 120 transactions totaled $851,863 out of the total expenditure population of $2,608,399. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.

Categories

Allowable Costs / Cost Principles School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20241 2022-014
    Material Weakness
  • 20242 2022-016
    Material Weakness Repeat
  • 20243 2022-013
    Material Weakness
  • 20244 2022-014
    Material Weakness
  • 20245 2022-016
    Material Weakness Repeat
  • 20246 2022-013
    Material Weakness
  • 20247 2022-013
    Material Weakness
  • 20248 2022-014
    Material Weakness
  • 20249 2022-016
    Material Weakness Repeat
  • 20250 2022-013
    Material Weakness
  • 20251 2022-015
    Material Weakness
  • 20252 2022-016
    Material Weakness Repeat
  • 20253 2022-013
    Material Weakness
  • 20254 2022-015
    Material Weakness
  • 20255 2022-016
    Material Weakness Repeat
  • 20256 2022-013
    Material Weakness
  • 20257 2022-015
    Material Weakness
  • 20258 2022-016
    Material Weakness Repeat
  • 20259 2022-013
    Material Weakness
  • 20260 2022-015
    Material Weakness
  • 20261 2022-016
    Material Weakness Repeat
  • 596683 2022-014
    Material Weakness
  • 596684 2022-016
    Material Weakness Repeat
  • 596685 2022-013
    Material Weakness
  • 596686 2022-014
    Material Weakness
  • 596687 2022-016
    Material Weakness Repeat
  • 596688 2022-013
    Material Weakness
  • 596689 2022-013
    Material Weakness
  • 596690 2022-014
    Material Weakness
  • 596691 2022-016
    Material Weakness Repeat
  • 596692 2022-013
    Material Weakness
  • 596693 2022-015
    Material Weakness
  • 596694 2022-016
    Material Weakness Repeat
  • 596695 2022-013
    Material Weakness
  • 596696 2022-015
    Material Weakness
  • 596697 2022-016
    Material Weakness Repeat
  • 596699 2022-015
    Material Weakness
  • 596700 2022-016
    Material Weakness Repeat
  • 596701 2022-013
    Material Weakness
  • 596702 2022-015
    Material Weakness
  • 596703 2022-016
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.44M
10.555 National School Lunch Program $1.05M
84.282 Charter Schools $363,680
84.367 Improving Teacher Quality State Grants $193,332
84.027 Special Education_grants to States $114,885