MARION P. THOMAS CHARTER SCHOOLNon-Profit

Finding 2022-002 Food Service Claims Submission Child Nutrition Cluster Assistance Listing No. #10.553 National School Breakfast Program Assistance Listing No. #10.555 National School Lunch Program Assistance Listing No. #10.555 Food Donation Program Assistance Listing No. #10.582 Fresh Fruits and Vegetables Criteria Under Title 7 CFR Part 210.8 Claims for reimbursement, "A final Claim for Reimbursement shall be postmarked or submitted to the State agency not later than 60 days following the last day of the full month covered by the claim. State agencies may establish shorter deadlines at their discretion. Claims not postmarked and/or submitted within 60 days shall not be paid with Program funds unless otherwise authorized by United State Department of Agriculture (USDA) Food and Nutrition Services (FNS)." Condition During the audit we noted that the Charter School's reimbursement claims to New Jersey State Department of Agriculture for the months of July 2021 and August 2021 amounting to $82,273 were submitted past the deadline of 60 days after the end of the reporting month. . In addition, differences between meals claimed and actual meals served for the months of September 2021, October 2021, November 2021, December 2021, January 2022, February 2022, March 2022, April 2022 and May 2022 which resulted to net underclaim of $14,976. Context Reimbursement claims to New Jersey State Department of Agriculture were denied and differences noted between actual meals served and number of meals claimed. Cause Staff turnovers, including School Business Administrators during fiscal year 2022 was the main reason for the issues noted. Effect Failure to submit the claims within the prescribed period and timely review resulted in nonpayment of claims. Questioned cost None. Recommendation We recommend that the Charter School implement its policies and procedures to ensure that the required reports are filed timely. We recommend personnel back-up and training to ensure that data requirements and timelines are adhered to.

Finding 2021-002 Time and Activity Reports Assistance Listing No. 84.010 ? Title I Grants to Local Educational Agencies Criteria An employee who works, in whole or in part, on a Federal program or cost objective must document time and effort. An employee who works solely on a single cost objective (e.g., a single Federal program) must furnish a semi-annual certification that he/she has been engaged solely in activities that support the single cost objective. The certification must be signed by the employee or a supervisory official having first-hand knowledge of the work performed by the employee in accordance with Uniform Guidance 2 C.F.R. 200.302. The payroll expense recorded in the books should represent the approved time and activity report. Condition During our audit, all required time and activity reports for the Title I employees were not provided. Context Monthly time and activity reports of Title I employees were not available. Cause Procedures to monitor the submission of time and effort documentation were not adhered to consistently. Effect Allocation of salaries among programs may not be equitable. Questioned cost None.

Finding 2021-003 Inadequate Supporting Documents on Federal Grants Assistance Listing No. #84.425D ? COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund Assistance Listing No. #21.019 ? COVID-19 - Coronavirus Relief Fund Criteria In accordance with the Uniform Guidance 2 CFR 200.302(a), ?Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state's own funds. In addition, the state's and the other non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. See also ? 200.450.? Condition During the audit we noted that invoices and purchase orders amounting to $497,099 for major federal programs (Assistance Listing 84.425D and 21.019) were not provided. Context Claims for COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19 - Coronavirus Relief Fund are not correctly supported. Cause Procedures to monitor proper filing of supporting documents were not adhered to consistently. Effect Expense was not properly supported Questioned cost Known questioned cost amounted to $497,099.

Time and Activity Reports CFDA #84.010 ? Title I Grants to Local Educational Agencies &CFDA #84.027 ? Individuals with Disabilities ? State Grants Criteria An employee who works, in whole or in part, on a Federal program or cost objective must document time and effort. An employee who works solely on a single cost objective (e.g., a single Federal program) must furnish a semi-annual certification that he/she has been engaged solely in activities that support the single cost objective. The certification must be signed by the employee or a supervisory official having first-hand knowledge of the work performed by the employee in accordance with Uniform Guidance 2 C.F.R. 200.302. The payroll expense recorded in the books should represent the approved time and activity report. Condition During our audit, not all required time and activity reports for the Title I and IDEA employees were provided. Context Monthly time and activity reports of split-funded employees during the first half of the year were not available. Cause Procedures to monitor the submission of time and effort documentation were not adhered to consistently. Effect Allocation of salaries among programs may not be equitable. Questioned cost None. Recommendation The Charter School should ensure that federally funded employee salaries have a completed semi-annual or monthly time and activity certification in accordance with Uniform Guidance 2 C.F.R. 200.302. View of Responsible Official and Planned Corrective Action The School Business Administrator and Chief School Administrator have become educated in all Federal Grant requirements moving forward to ensure all federally funded positions complete the required paperwork.

Expenses Were Charged to Two Federal Grants CFDA #84.010 ? Title I School Improvement Grant, Part G Criteria In accordance with the Uniform Guidance 2 CFR 200.302(a), ?Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state's own funds. In addition, the state's and the other non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. See also ? 200.450.? Condition During the audit we noted that $39,783 expense already claimed for IDEA was recorded as expenses for Title I, SIA Context Claim for Title I, SIA is not correctly supported. Cause The purchase orders were not properly encumbered in Special Revenue fund. Instead, it was reclassified from the General Fund expenses to the Special Revenue fund which caused the oversight of the double claim. Effect Expense was claimed twice. Questioned cost Known questioned cost amounted to $39,783. Recommendation The Charter School should encumber and pay federal grant expenses in Special Revenue Fund instead of reclassifying expenses from the General Fund. In addition, federal grant expense details should be timely reviewed before recording in the general ledger and claiming for reimbursement. Further, the Charter School should timely review transactions to prevent duplicate charging of expenditures to Federal programs.