AMIGOS POR VIDA - FRIENDS FOR LIFE PUBLIC CHARTER SCHOOL

Finding #2019-003: ESEA Title I Part A (CFDA 84.010A) - Control Environment - Training Type of Finding: Significant Deficiency Criteria: Standards for Internal Control in the Federal Government Principle 4 ? Demonstrate Commitment to Competence 4.02 of the Green Book states that management establishes expectations of competence for key roles, and other roles at management?s discretion, to help the entity achieve its objectives. Competence is the qualification to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities. Condition: Based on our federal procurement walkthrough, we noted that the key personnel responsible for federal compliance do not go to compliance update trainings. Cause: The Business Manager attended professional development training in the areas of procurement and federal spending requirements including one-on-one training from the CFO. Employment of the Business Manager was not renewed and left prior to the end of his assignment. Questioned Cost: None Effect: Lack of training will result in limited knowledge and lack of understanding of the latest federal requirements. Recommendation: We recommend that the key personnel responsible for federal requirements attend compliance update and trainings annually and as needed basis. The compliance requirements should be communicated to other employees that deal with the grants. View of Responsible Official: Agree with the recommendation.

Finding #2019-004: ESEA Title I Part A (CFDA 84.010A) - Internal Control Over Compliance and Compliance - G. Level of Effort: Supplement not Supplant Type of Finding: Significant Deficiency Criteria: The Charter School is required to demonstrate internal cover compliance related to level of supplement not supplant. According to the Texas Education Agency (TEA), beginning with 2018-2019 school year, each local education agency that receives Title I funds must have formal documentation that confirms either all components of the supplement not supplant methodology or a statement of exemption are maintained. As a single campus, the Charter School is exempt from the methodology requirement but still needs to have a formal Statement of Exemption with elements prescribed by the Texas Education Agency. Condition: The Charter School does not maintain the formal Statement of Exemption. Cause: Since the Charter School is a single campus and therefore exempt from the methodology requirement, the CFO mistakenly did not complete the required formal Statement of Exemption. Questioned Cost: None Effect: Failure to properly design and implement controls could result in non-compliance with federal and TEA requirements. Recommendation: We recommend the Charter School to review and follow the TEA?s Supplement not Supplant Handbook. View of Responsible Official: The Supplement not Supplant Handbook has been reviewed and will be reinforced with appropriate personnel.