Finding 951177 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-11
Audit: 294423
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: Key accounts like accounts receivable and long-term debt were not reviewed by June 30, 2023, delaying financial statement finalization.
  • Impacted Requirements: The School failed to maintain adequate internal controls as required by the Uniform Guidance, affecting the reliability of financial reporting.
  • Recommended Follow-Up: Strengthen processes for timely reconciliations and supervisory reviews to ensure accurate financial statements.

Finding Text

Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 374719 2023-001
    Significant Deficiency
  • 374720 2023-001
    Significant Deficiency
  • 374721 2023-001
    Significant Deficiency
  • 374722 2023-001
    Significant Deficiency
  • 374723 2023-001
    Significant Deficiency
  • 374724 2023-001
    Significant Deficiency
  • 374725 2023-001
    Significant Deficiency
  • 374726 2023-001
    Significant Deficiency
  • 374727 2023-001
    Significant Deficiency
  • 374728 2023-001
    Significant Deficiency
  • 374729 2023-002
    Significant Deficiency
  • 374730 2023-001
    Significant Deficiency
  • 374731 2023-002
    Significant Deficiency
  • 374732 2023-001
    Significant Deficiency
  • 374733 2023-001
    Significant Deficiency
  • 374734 2023-001
    Significant Deficiency
  • 374735 2023-001
    Significant Deficiency
  • 951161 2023-001
    Significant Deficiency
  • 951162 2023-001
    Significant Deficiency
  • 951163 2023-001
    Significant Deficiency
  • 951164 2023-001
    Significant Deficiency
  • 951165 2023-001
    Significant Deficiency
  • 951166 2023-001
    Significant Deficiency
  • 951167 2023-001
    Significant Deficiency
  • 951168 2023-001
    Significant Deficiency
  • 951169 2023-001
    Significant Deficiency
  • 951170 2023-001
    Significant Deficiency
  • 951171 2023-002
    Significant Deficiency
  • 951172 2023-001
    Significant Deficiency
  • 951173 2023-002
    Significant Deficiency
  • 951174 2023-001
    Significant Deficiency
  • 951175 2023-001
    Significant Deficiency
  • 951176 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Emergency and Secondary School Emergency Relief Fund $2.99M
84.010 Title I, Part A Gratns to Local Educational Agencies $531,234
84.371 Striving Readers Comphrensive Literacy Program $513,464
10.555 National School Lunch Program $425,717
93.778 Medical Assistance Program $278,146
84.010 Title I, Part A - Investments in Schools 2 $109,665
84.370 Dc School Choice: Scholarships for Opportunity and Results Act $107,836
84.027 Special Education_grants to States $90,634
84.184 Education Agency Grants - Csp Cmo - Fy2022 $84,129
10.558 Child and Adult Care Food Program $76,280
10.582 Fresh Fruit and Vegetable Program $35,810
84.027 Individuals with Disabilities Education Act/american Rescue Plan Act of 2021 - Special Education Grants to States $12,800
10.550 National School Breakfast Program $12,593
84.143 Special Education Preschool Grants $1,566