Summit Academy - YoungstownLocal Government

2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.302(b)(2) which provides the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in 2 CFR ?? 200.328 and 200.329. Additionally, 2 CFR Subpart F ? 200.510(b) requires the auditee prepare a Schedule of Expenditures of Federal Awards (the Schedule) for the period covered by the School?s financial statements which must include the total federal awards expended as determined in accordance with ? 200.502. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL (a.k.a. CFDA) number or other identifying number when the AL (a.k.a CFDA) information is not available. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502 Basis for determining Federal awards expended, paragraph (b), identify in the notes to the schedule the balances outstanding at the end of the audit period. (6) Include notes that describe the significant accounting policies used in preparing the schedule, and note whether or not the auditee has elected to use the 10 percent de minimis cost rate as covered in ? 200.414 Indirect (F&A) costs. For Single Audit determination under the Federal Uniform Guidance, a federal expenditures spreadsheet was prepared and reported to Audit; however, the amounts reported were not accurate. Employees whose pay is charged to federal grants are not always directly coded to the grant funds within the payroll system, requiring adjustment after bi-monthly payroll runs are recorded to the general ledger system. Additionally, all required adjustments to the management company's general ledger system were not fully completed prior to the audit. As a result, the amounts presented in the initial federal schedule spreadsheet for audit were incomplete and/or may be misclassified with respect to grant year. Furthermore, the lack of effective controls over this compliance requirement resulted in the Schedule being misstated by a net difference of $101,711, or 11%. Adjustments, to which management have agreed, are reflected in the accompanying Schedule. Errors and omissions on the federal schedule spreadsheet could result in incorrect determination of required Single Audit under the Federal Uniform Guidance and/or inaccurate assessment of major federal programs that would be subject to audit. To help ensure the School is in compliance with the Federal Uniform Guidance, School management should implement a system to ensure all fiscal year federal expenditures are properly reported for annual financial reporting purposes, Single Audit determination, and to help ensure the reported fiscal year federal expenditures can be easily reconciled to the Federal Expenditures Reports as required by the Single Audit Act. Finally, this may help ensure the Schedule is complete and accurate, and major federal programs are accurately identified for audit.