Achievement First Brooklyn Charter Schools

Finding No. 2025-001 - Activities Allowed or Unallowed and Allowable Costs/Cost Principles - Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name and Assistance Listing Number: Title I Grants to Local Educational Agencies (LEAs) - ALN #84.010 Federal Award Identification Number and Year: 0021-24-4555 2025 Name of Pass-through Entity: New York State Department of Education Criteria According to 2 CFR, Part 200.430(i)(1) charges to Federal awards for salaries and wages must be based on records that accurately reflect the actual work performed, which must, among other things: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition During the year ended June 30, 2025, the Academy had insufficient support for the review and of time and effort spent on the allowable activities related to the Title I grant. Cause Approval signature was not documented on Semi-Annual Time Certification Form. This lack of approval therefore did not demonstrate that any review had been performed over salary allocations using Title I grant revenue. Effect or Potential Effect As a result of the lack of review, the teachers' salaries allocated to the Title I grant may not be accurate. Questioned Costs None Context We selected 8 employees charged to the Title I grant to test for controls over time and effort. The Academy did not have evidence of review of the Title I teachers' time and effort for any of the 8 employees tested. Identification as a Repeat Finding This is not a repeat finding. Recommendation The School should have written documentation for each teacher's time and effort related to allowable activities for Title I grant. The School should also review this time and effort report on a periodic basis and include a review process to ensure the policy is followed. Reporting Views of Responsible Officials We agree with the finding and will develop and implement procedures to address the finding.

We will revise our process to ensure the appropriate approval signatures are on Student Withdrawl Forms for transferred students, and for Graduated Students Listing.

Finding No. 2025-002 - Special Tests - Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name and Assistance Listing Number: Title I Grants to Local Educational Agencies (LEAs) - ALN #84.010 Federal Award Identification Number and Year: 0021-24-4555 2025 Name of Pass-through Entity: New York State Department of Education Criteria According to ESEA sections 111 l(h)(l)(C)(iii)(II) and 8101(23), (25) (20 USC 631 l(h)(l)(C)(iii)(II) and 7801(23), (25)), to remove a student from the cohort, a school or LEA must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or LEA must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. A student who is retained in grade, enrolls in a GED program, or leaves school for any other reason may not be counted as having transferred out for the purpose of calculating graduation rate and must remain in the adjusted cohort. Condition During the year ended June 30, 2025, the School had insufficient support for the review and approval of withdrawn students related to Title I grant requirements. Cause Approval signature was not documented on Student Withdrawal Forms for transferred students. For graduated students, there was no approval signature documented on Graduated Students Listing. This lack of approval therefore did not demonstrate that any review had been performed over withdrawn students for Title I grant revenue. Effect or Potential Effect As a result of the lack of review, the number of students claimed for the Title I grant may not be accurate. Questioned Costs None Context We selected 40 transferred and graduated students for the 2024-2025 school year and obtained their withdrawal documentation to test for proper approvals. The Academy did not have evidence of review of 7 students who withdrew in the 2024-2025 school year. Identification as a Repeat Finding This is not a repeat finding.   Recommendation The School should have a written documentation for each withdrawn student related to special tests for Title I. The Academy should also review transferred student forms on a periodic basis and include a review process to ensure the policy is followed. Reporting Views of Responsible Officials We agree with the finding and will develop procedures to address the finding.

For FY26, the Academy has implemented a process to ensure procurement of approval signatures on Semi-Annual Time Certification Forms, which will demonstrate a review has been performed over salary allocations.

Finding No. 2023-002 - COVID-19 Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing Number #84.425D Criteria According to 2CFR Part 200.405 of the Office of Management and Budget's Uniform Guidance, a cost is allowable to a particular Federal award or to the cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with the relative benefits received. Condition The School provided a completed claim report for reimbursement of expenses that was finalized internally but not yet submitted to the grantor. The report was not properly reviewed resulting in an overstatement of expenses incurred in the report. Questioned Costs The claim report was modified prior to submission to the grantor, therefore there were no questioned costs. Context The School submits quarterly claim reports. The final report was not properly reviewed nor prepared. Cause Certain costs were double counted within the claims report due to the report not being properly reviewed. Effect Lack of a proper review may result in an incorrect claim filing and receipt of funds in excess of allowable costs incurred. Identification as a Repeat Finding This is not a repeat finding. Recommendation Claim reports and supporting schedules should be reviewed prior to finalization by the supervisor of the preparer of the report. Reporting Views of Responsible Officials We agree with the finding and will develop procedures to address the finding.

Audit Finding Reference: 2023-002 – COVID-19 Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund – Assistance Listing Number #84.425D Planned Corrective Action: We will add a field to our payroll reports to identify within the system ESSER related salaries and wages so we can compare those reports to our final payroll numbers. Name of Contact Person: Jennifer Rhoads Sr. Director of Accounting Jenniferrhoads@achievementfirst.org Anticipated completion date: November 16, 2023

Finding No. 2022-001 ? Title I Grants to Local Educational Agencies (LEAs) ? CFDA #84.010 Criteria The School must report graduation data. To remove a student from the data, the School must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. Condition During the year ended June 30, 2022, the School had insufficient support for the removal of students from the school. Additionally, the School did not follow their approval process for withdrawals. Questioned Costs None Context The School did not have written documentation for the removal of six students out of a sample of 25 students. In addition, six of the remaining 19 withdrawal forms did not have two approvals in accordance with school policies. Cause Withdrawal forms with two signatures were not on file due to not being able to get a response from with a parent, an AF team member, or both. Effect As a result, the School's reported graduation data may not be accurate. Identification as a Repeat Finding No

Audit Finding Reference: 2022-001 ? Title I Grants to Educational Agencies (LEAs) ? CFDA #84.010 Planned corrective action: We will revise our process for student withdrawals and ensure there is a step in our process to acknowledge when our schools are unable to get in touch with families who withdraw. Contact Person: Amelia Hanley, Associate Chief, School Operations ameliahanley@achievementfirst.org Expected completion: November 18, 2022