EIN: 560815686
UEI: LN84WEZA7KA8
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 22, 2024. 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 July 22, 2024, which was (760 days ago).
What is a management decision? →U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Names: COVID-19 – Education Stabilization Fund (AL #: 84.425) Special Education Cluster (AL #’s: 84.027 and 84.173) Title I, Grants to Local Educational Agencies (AL #: 84.010) SIGNIFICANT DEFICIENCY Compliance – Cash Management Criteria: Controls should ensure that bank reconciliations are prepared in a timely manner each month to enable the Board to make timely decisions based upon accurate data. Condition: State bank account reconciliations were not prepared in a timely manner during the year. Effect: Since bank account reconciliations were not performed in a timely manner, management decisions could have been made by the Board while relying upon inaccurate financial reporting. Cause: The June 30, 2022 audit could not be completed until late March, 2023 due to account reconciliations having to be finalized. Therefore, the account reconciliation process for the 2022-2023 year was already approximately nine months behind at the conclusion of the 2022 audit. Management implemented controls and procedures during the 2022-2023 year to address this issue and has worked diligently to catch-up these reconciliations for the 2022-2023 year. Question costs: None. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, Finding 22-05. Recommendation: Management has indicated that with the controls and procedures put in place during the 2022-2023 year, the district is now almost current with its monthly reconciliation processes. We recommend that management continue to monitor and review these monthly reconciliations to ensure that all general ledger accounts are being reconciled in a timely manner. Views of responsible officials and planned corrective actions: The Board of Education agrees with this finding. Management will take the necessary actions as described in the Corrective Action Plan.
Name of Contact Person :Wannaa Chavis, Chief Finance Officer Corrective Acrtion Plan: The finding resulted primarily from significant turnover within the Finance Department. Management has established procedures to ensure that all bank account and other required reconciliations are prepared on a timely basis going forward. The Finance department will also strive to keep key positions filled at all times and ensure that staff receives appropriate training regarding reconciliations. Proposed Completion Date: Immediately
2022-005
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 28, 2023. 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 September 28, 2023, which was (1058 days ago).
What is a management decision? →U.S. Department of Education Passed Through the N.C. Department of Public InstructionProgram Names: COVID-19 ? Education Stabilization Fund, Special Education ClusterCFDA #: 84.425, 84.027 and 84.173MATERIAL WEAKNESSCompliance ? Cash ManagementCriteria: Controls should ensure that monthly bank reconciliations are prepared and accounting transactions are recorded and reconciled to the federal Budget Balance Reconciliation Report in a timely manner to enable the Board to make timely decisions based upon accurate data.Condition: State bank account reconciliations were not properly prepared during the year and accounting records were not properly reconciled to the federal Budget Balance Reconciliation Report during the year.Effect: Numerous errors relating to financial reporting were made during the year. Since bank accounts and other key general ledger account reconciliations were not performed in a timely manner, these errors were not corrected until after year end. Therefore, during the year management decisions were made by the Board while relying upon inaccurate financial reporting.Cause: Lack of oversight by management.Questioned costs: None.Identification of a repeat finding: This is a repeat finding from the immediate previous audit, Finding 21-05.Recommendation: We recommend that management implement controls and procedures to ensure that all general ledger accounts are reconciled in a timely manner each month.Views of responsible officials and planned corrective actions:The Board of Education agrees with this finding and will establish procedures to ensure that all bank account and other required reconciliations are prepared on a timely basis going forward.
Name of Contact Person: Victoria Blue, Interim Finance OfficerCorrective Action Plan: Monthly reconciliations will be completed by the 15th day of the following month. A report showing completion of the reconciliations will be provided to the Superintendent by the end of the following month. The results of the reconciliations will be evident in the monthly Trial Balance.Proposed Completion Date: Immediately
2021-005
U.S. Department of EducationPassed Through the N.C. Department of Public InstructionProgram Name: COVID-19 ? Education Stabilization FundCFDA #: 84.425MATERIAL WEAKNESSCompliance ? Special Tests and ProvisionsCriteria: Budget amendments are required if an LEA has exceeded the cumulative budgeted line items by 10% or more of their current total approved budget. These amendments are submitted through the BUD system and approved by the individual program consultant at DPI.Condition: The district overspent its federal PRC 171 budgeted expenditures for account code 3.5110.171.183 by $1,429,384 and for account code 3.8100.171.394 by $717,257. These amounts were approximately 21% and 11%, respectively, of the total PRC 171 approved budget.Effect: The Board is not in compliance with the aforementioned criteria.Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to.Questioned costs: None.Identification of a repeat finding: This is a repeat finding from the immediate previous audit, Finding 21-06.Recommendation: We recommend that controls be put in place to ensure that budget amendments are completed in accordance with program requirements. Views of responsible officials and planned corrective actions:The Board of Education agrees with this finding and will implement controls to ensure that budget amendments are completed in accordance with program requirements.
Name of Contact Person: Victoria Blue, Interim Finance OfficerCorrective Action Plan: Budget Managers will monitor Program Report Code expenditures on a monthly basis for compliance with the 10% federal requirement. Amendments will be submitted through the BUD system, as necessary, to ensure compliance with the 10% requirement.Proposed Completion Date: Immediately
2021-006
MATERIAL WEAKNESSCompliance ? Allowable Costs/Cost PrinciplesCriteria: The Emergency Connectivity Fund (ECF) does not permit applicants to receive duplicative support for equipment or services that have already been reimbursed through other federal or State programs.Condition: During the year ended June 30, 2022, the Board received funding from the Emergency Connectivity Fund totaling $2,233,262 for reimbursement of equipment purchases. $893,123 of these purchases had been paid from the General Fund using local funds. $1,340,139 of these purchases had been paid from the State Public School Fund using Low Wealth (PRC 031) funds.Effect: $1,340,139 of ECF funds received were for duplicative support that had already been reimbursed by the State Public School Fund from Low Wealth funds.Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to.Questioned costs: $1,340,139. This amount is reported as unearned revenue in Exhibit 3 of the Board?s June 30, 2022 financial statements.Identification of a repeat finding: This is not a repeat finding from the immediate previous audit.Recommendation: We recommend that controls be put in place to ensure that management fully understands all program requirements pertaining to grant funding received by the district to ensure that available grant funding is maximized for the benefit of the district.Views of responsible officials and planned corrective actions:The Board of Education agrees with this finding and will implement controls to ensure that management fully understands all program requirements pertaining to grant funding received by the district to ensure that available grant funding is maximized for the benefit of the district.
Name of Contact Person: Victoria Blue, Interim Finance OfficerCorrective Action Plan: The Board will implement controls to ensure that management fully understands all program requirements pertaining to grant funding received by the district to ensure that available grant funding is maximized for the benefit of the district.Proposed Completion Date: Immediately
U.S. Department of EducationPassed Through the N.C. Department of Public InstructionProgram Name: Special Education ClusterCFDA #?s: 84.027 and 84.173SIGNIFICANT DEFICIENCYCompliance ? Activities Allowed or UnallowedCriteria: Management is required to complete an Excess Cost Computation Form (ECCF) to prove that special education federal funds are used only for the excess costs of providing special education and related services to children with disabilities.Condition: Management did not complete the required ECCF for the year under audit.Effect: The Board is not in compliance with the aforementioned criteria.Cause: Controls were not in place to ensure that the aforementioned program requirements were adhered to.Questioned costs: NoneIdentification of a repeatfinding: This is not a repeat finding from the immediate previous audit.Recommendation: We recommend that controls be put in place to ensure that the required ECCF is completed each year.Views of responsible officials and planned corrective actions:The Board of Education agrees with this finding and will implement controls to ensure that the required ECCF is completed each year.
Name of Contact Person: Victoria Blue, Interim Finance OfficerCorrective Action Plan: Management will implement controls and procedures to ensure that the required Excess Cost Computation Form is completed each year.Proposed Completion Date: Immediately
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 2, 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 April 2, 2023, which was (1237 days ago).
What is a management decision? →Criteria: Controls should ensure that monthly bank reconciliations are prepared and accounting transactions are recorded and reconciled to the federal Budget Balance Reconciliation Report in a timely manner to enable the Board to make timely decisions based upon accurate data. Condition: State bank account reconciliations were not properly prepared during the year and accounting records were not properly reconciled to the federal Budget Balance Reconciliation Report during the year. Effect: Numerous errors relating to financial reporting were made during the year. Since bank accounts and other key general ledger account reconciliations were not performed in a timely manner, these errors were not corrected until after year end. Therefore, during the year management decisions were made by the Board while relying upon inaccurate financial reporting. Cause: Lack of oversight by management. Questioned costs: None. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: We recommend that management implement controls and procedures to ensure that all general ledger accounts are reconciled in a timely manner each month.
Name of Contact Person: Dr. Michael Riles, Chief of Staff Corrective Action Plan: Monthly reconciliations will be completed by the 15th day of the following month. A report showing completion of the reconciliations will be provided to the Superintendent the fourth Monday Money Talks meeting. The results of the reconciliations will be evident in the monthly Trial Balance. Proposed Completion Date: Immediately
Criteria: Budget amendments are required if an LEA has exceeded the cumulative budgeted line items by 10% or more of their current total approved budget. These amendments are submitted through the BUD system and approved by the individual program consultant at DPI. Condition: The district overspent its federal PRC 163 budgeted expenditures for account code 3.6540.163.311 by $784,409 which is approximately 38% of the total PRC 163 approved budget. This over-expenditure occurred due to a BUD adjustment done on June 23, 2021 moving these expenditures from the State Public School Fund to PRC 163 in the Federal Grants Fund. Effect: The Board is not in compliance with the aforementioned criteria. Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to. Questioned costs: None. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: We recommend that controls be put in place to ensure that budget amendments are completed in accordance with program requirements.
Name of Contact Person: Dr. Michael Riles, Chief of Staff Corrective Action Plan: Budget Managers will monitor Program Report Code expenditures on a monthly basis by purpose object code. A running balance of transfers will be maintained in order to monitor the 10% threshold of amendments. A report on the percentage of transfer by Program Report Code will be provided to the Superintendent during the fourth Monday Money Talks meeting. If a BUD amendment is required, the Finance Leadership will prepare and submit a BUD Amendment for the preceding Board of Education meeting. Proposed Completion Date: Immediately
Criteria: The NC DPI chart of accounts allows for pay to teachers at designated schools for additional contract days beyond the school year to be paid from object code 126 ?Extended Contracts?. Condition: The district charged $307,843 of salaries to PRC 171, object code 126 for bus drivers, teacher assistants and other non-certified individuals. Effect: Pay to these non-certified individuals was improperly coded to object code 126. Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to. Questioned costs: None. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: We recommend that controls be put in place to ensure that all salaries paid by the district are properly coded in accordance with the NC DPI chart of accounts.
Name of Contact Person: Dr. Michael Riles, Chief of Staff Corrective Action Plan: Prior to processing payroll, a report will be generated showing each account that will be affected with the payroll. The payroll staff will review the report to make sure all expenditures are properly coded according to the State Chart of Accounts. The certified finance officer will sign off on the batch report prior to the running of the payroll. Proposed Completion Date: Immediately
Criteria: Expenditures reported from the Education Stabilization Fund should be supported by proper documentation and be allowable under program guidelines. Condition: In June, 2021, a BUD adjustment was made moving $424,247.90 of teacher supplements to budget code 3.5110.171.181 from the General Fund. However, the corresponding budget code in the General Fund is reporting a negative balance of $413,460.61, indicating that more teacher supplement expenditures were moved to the Education Stabilization Fund than what was actually paid to employees. Effect: It appears that Education Stabilization funds were paid to the General Fund for expenditures that cannot be substantiated. Cause: Controls were not in place to ensure that only actual, allowable expenditures were paid from Education Stabilization funds. Questioned costs: $413,460.61. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: We recommend that controls be put in place to ensure that any expenditures charged to the Education Stabilization Fund are supported by proper documentation and are allowable under program guidelines.
Name of Contact Person: Dr. Michael Riles, Chief of Staff Corrective Action Plan: All BUD adjustments will have a general ledger report reflecting the actual expense attached to each BUD transaction. All BUD adjustments will be signed off by the certified finance officer. Proposed Completion Date: Immediately
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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