Finding Text
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
(Repeat Finding 2022-011)
U.S. Department of Education / Passed-through Opportunity 180
Federal Assistance Listing Number 84.282B – Charter Schools
Award Number S282A200009-20A, Subgrantee Number CSP-2021-56278, Award
Date April 1, 2021–August 31, 2023
Criteria – Management is responsible for internal controls over compliance with
Activities Allowed or Unallowed and Allowable Costs/Cost Principles in accordance
with the Uniform Guidance.
Condition – 13 of the expenditures tested did not have evidence of review and
approval prior to the expenditure.
Questioned Costs – None
Context/Sampling – A non-statistical sample of 26 expenditures out of 170
expenditures was selected for testing.
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 detected by the School.
Recommendation – We recommend that 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 that 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 grant reimbursement requests submitted, until proper approval is
received.