Finding 957387 (2023-004)

Significant Deficiency Repeat Finding
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-03-18
Audit: 295693
Auditor: Forvis

AI Summary

  • Core Issue: The School miscalculated the Maintenance of Effort due to inadequate internal controls and lack of independent review.
  • Impacted Requirements: Compliance with the Uniform Guidance for Maintenance of Effort reporting, which must be accurate and properly documented.
  • Recommended Follow-up: Develop a standard template for Maintenance of Effort calculations and ensure knowledgeable personnel review reports before submission.

Finding Text

U.S. Department of Education/Passed Through State of Nevada Public Charter School Authority Federal Assistance Listing Numbers 84.010 – Title I, 84.010A - Title I 1003(a) FY23 Title I, Part A – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, Section 1003a – Award Date 7/1/22-9/30/23 FY23 Title I, Part A, APP-01953-J3J3-A1 – Award Date 7/1/22-9/30/23 Criteria – Management is responsible for internal controls over compliance with Level of Effort – Maintenance of Effort in accordance with the Uniform Guidance. Condition – The School incorrectly calculated Maintenance of Effort and there was no documentation of review by an individual independent of the preparation of the calculation. Questioned Costs – None Context/Sampling – Maintenance of Effort reporting is required to be filed annually. FORVIS tested the annual calculation performed during the fiscal year ended June 30, 2023. Cause – The School did not have adequate internal controls to ensure review of Maintenance of Effort reporting was performed and documented prior to submission. Maintenance of Effort was not calculated correctly due to the financial data used in the calculation being on a different basis of accounting and including incorrect financial statement line items. Effect or potential effect – Inaccurate data was provided to the grantor. Recommendation – We recommend the School create a standard template to prepare the Maintenance of Effort calculation indicating which specific financial statements and line items to include in the calculation to allow for consistent and accurate reporting in accordance with the compliance requirement and policies and procedures to ensure that the calculation and report are reviewed by someone knowledgeable of the requirements prior to submission. Views of responsible officials and planned corrective actions – Due to unexpected turnover, a secondary review was not performed to verify the preparation of the Maintenance of Effort reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 380944 2023-003
    Significant Deficiency Repeat
  • 380945 2023-004
    Significant Deficiency Repeat
  • 380946 2023-003
    Significant Deficiency Repeat
  • 380947 2023-004
    Significant Deficiency Repeat
  • 380948 2023-005
    Material Weakness
  • 380949 2023-005
    Material Weakness
  • 380950 2023-006
    Material Weakness
  • 380951 2023-006
    Material Weakness
  • 380952 2023-006
    Material Weakness
  • 380953 2023-006
    Material Weakness
  • 380954 2023-006
    Material Weakness
  • 380955 2023-006
    Material Weakness
  • 957386 2023-003
    Significant Deficiency Repeat
  • 957388 2023-003
    Significant Deficiency Repeat
  • 957389 2023-004
    Significant Deficiency Repeat
  • 957390 2023-005
    Material Weakness
  • 957391 2023-005
    Material Weakness
  • 957392 2023-006
    Material Weakness
  • 957393 2023-006
    Material Weakness
  • 957394 2023-006
    Material Weakness
  • 957395 2023-006
    Material Weakness
  • 957396 2023-006
    Material Weakness
  • 957397 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $149,076
84.010 Title I Grants to Local Educational Agencies $147,087
84.425 Education Stabilization Fund $81,500
84.367 Supporting Effective Instruction State Grants $69,699
10.553 School Breakfast Program $62,414
84.365 English Language Acquisition State Grants $39,363
84.424 Improving Teacher Quality State Grants $29,833
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $16,533
84.027 Special Education_grants to States $1,905
94.243 Advancing Wellness and Resiliency in Education (project Aware) $950