EIN: 204446450
UEI: KA57HXNY32H6
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 22, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 22, 2022 (1343 days ago).
What is a management decision? →The School transferred rent expenses from Fund 10 to Fund 20 and charged $599,958 to the Education and Stabilization Fund (CARES ACT) Grant. These are rent expenses from leases that had been in effect prior to the COVID-19 pandemic. There are no incremental costs charged to the School for any renovations or improvements by landlord that directly address preparedness and response to the COVID-19 pandemic situation. Therefore the School incurred no costs that should be charged to the grant. We questioned $599,958 because these expenditures were not in compliance with grant requirements. Cause: The CARES Act grants were released in an emergency situation when it was unclear whether the Charter Schools would have State Aid significantly decreased resulting in an interruption to school programs. The Charter School charged critical expenditures, such as rent, to the grant in order avoid closure of school facilities in the event that State funding was severely curtailed due to the pandemic. The School provided the County with a budget outlining the expenses to be charged to the grant, and a rationale explaining the need for the funds. The grant was approved by the County which provided the School with a level of assurance that the expenditures would be in compliance with grant requirements. The emergency situation, the unstable environment, and the School?s reliance on the County?s approval of the grant expenditures, led to these unallowable expenditures charged to the grant. Effect: The grant was overcharged with non allowable expenses. Questioned Costs: . $599,958 Context: The instance of non compliance is considered to be non-systematic and the result of an exceptional set of circumstances related to an emergency pandemic situation. Recommendations: Management should establish procedures and controls to ensure that grant compliance requirements are carefully reviewed and understood prior to submitting expenditures for reimbursement.
Show full finding ▾Hide full finding ▴Item #2021-001 ? Expenses Charged to the Education and Stabilization Fund (CARES ACT) Criteria: The grant calls for allowable expenses to directly address preparedness and response to the COVID-19 pandemic situation. Condition: The School transferred rent expenses from Fund 10 to Fund 20 and charged $599,958 to the Education and Stabilization Fund (CARES ACT) Grant. These are rent expenses from leases that had been in effect prior to the COVID-19 pandemic. There are no incremental costs charged to the School for any renovations or improvements by landlord that directly address preparedness and response to the COVID-19 pandemic situation. Therefore the School incurred no costs that should be charged to the grant. We questioned $599,958 because these expenditures were not in compliance with grant requirements. Cause: The CARES Act grants were released in an emergency situation when it was unclear whether the Charter Schools would have State Aid significantly decreased resulting in an interruption to school programs. The Charter School charged critical expenditures, such as rent, to the grant in order avoid closure of school facilities in the event that State funding was severely curtailed due to the pandemic. The School provided the County with a budget outlining the expenses to be charged to the grant, and a rationale explaining the need for the funds. The grant was approved by the County which provided the School with a level of assurance that the expenditures would be in compliance with grant requirements. The emergency situation, the unstable environment, and the School?s reliance on the County?s approval of the grant expenditures, led to these unallowable expenditures charged to the grant. Effect: The grant was overcharged with non allowable expenses. Questioned Costs: . $599,958 Context: The instance of non compliance is considered to be non-systematic and the result of an exceptional set of circumstances related to an emergency pandemic situation. Recommendations: Management should establish procedures and controls to ensure that grant compliance requirements are carefully reviewed and understood prior to submitting expenditures for reimbursement.
Responsible Official's Response and Corrective Action Planned: Bergen Arts and Science Charter School applied for CARES Act funding and appropriately stated its use of funds to in EWEG system, explaining that the buildings are not owned by the school, and any improvements necessary to the building would be the responsibility of the landlord and lease payments would cover such expenditures. The school received approval from the NJDOE program officers accordingly. Secondly, auditor?s interpretation that the grant calls for allowable expenses to directly address preparedness and response to the COVID-19 pandemic situation is not consistent with the guidelines school received by the NJDOE. The guidelines provide multiple-use options to the schools that include addressing preparedness and response to the Covid 19 pandemic situation. There are also other allowable use options for schools to choose from that are not directly related to the Covid 19 pandemic. Below are some examples for instance. 1. a) Any activity authorized by the ESEA of 1965, b) the Individuals with Disabilities Education Act (?IDEA?), c) the Adult Education and Family Literacy Act,d) the Carl D. Perkins Career and Technical Education Act or e) subtitle B of title VII of the McKinney-Vento Homeless Assistance ActProviding principals and other school leaders with the resources necessary to address the needs of their individual schools. 3. Activities to address the unique needs of low-income children or students, children with disabilities, English learners, racial and ethnic minorities, students experiencing homelessness, and foster care youth, including how outreach and service delivery will meet the needs of each population. 4. Other activities that are necessary to maintain the operation of and continuity of services in local educational agencies and continuing to employ existing staff of the local educational agency. School used the #4 option in its application and received approval from the program officers at NJDOE. Lastly, the recommendation is that ?management should establish procedures and controls to ensure that grant compliance requirements are carefully reviewed and understood prior to submitting expenditures for reimbursement.? Such procedures and controls already exist and were followed in regards to this grant, and School will continue ensuring that all future grant proceeds are reviewed carefully for compliance with grant requirements. The School Business Administrator communicated clearly and directly with the county office to ensure that the planned expenditures were met with approval. Person Responsible for Corrective Action We disagree with the auditor?s finding. We believe our actions meet the requirements of the program. We contacted the regional office of the Federal Department and obtained approval, as required by the grant agreement Planned Implementation Date of Corrective Action: N/A
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