IGNITE ACHIEVEMENT ACADEMY, INC.

FINDING NO. 2020-002 CASH MANAGEMENT (SIGNIFICANT DEFICIENCY) FEDERAL PROGRAM OR CLUSTER: CHILD NUTRITION CLUSTER CFDA NUMBER: 10.553 & 10.555 Criteria Per 7 CFR 210.14(b) and 7 CFR 220.7(e)(1)(iv), the ?school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service or such other amount as may be approved by the State agency.? Condition Based on the School?s expense reporting, a three-month average of expenditures would be approximately $46,000. The School was carrying a balance in excess of the three-month average of expenditures in five of the twelve months under audit, including a balance of approximately $57,000 as of June 30, 2020. Cause The School has not properly monitored the balance of these funds to make sure funds were expended in a manner to allow for compliance with federal guidelines. Effect This significant deficiency in internal control resulted in the School having an excessive cash balance in its meal program funds and not being in compliance with 7 CFR 210.14(b) and 7 CFR 220.7(e)(1)(iv). Recommendation We recommend the School develop internal controls to allow for closer monitoring of the balance of these funds. We also recommend the School proactively communicate this cash management finding to the Indiana Department of Education to discuss a remedial plan of action. School Response: We will work with our new accounting firm and communicate with the Indiana Department of Education School Nutrition to develop a mutually-agreeable plan to ensure the child nutrition fund is in compliance with SBOA standard. We disagree with this finding because the School Nutrition deposits are funds that are reimbursed to the school based on the number of student meals served per month. We purchase our meals from IPS and are invoiced each month for purchases. Due to the COVID-19 pandemic the months of April, May and June 2020 claims were not submitted as student meals were not served or purchased from IPS. Due to the unique nature of operating in an IPS-owned building spending down cash is more challenging. Implementation prior to June 30, 2020: CPA Firm, Business Operations Manager Oversite: Chief of Staff

FINDING NO. 2020-003 PROCUREMENT (SIGNIFICANT DEFICIENCY) FEDERAL PROGRAM OR CLUSTER: CHARTER SCHOOLS PROGRAM CFDA NUMBER: 84.282A Criteria Per 2 CFR 200.318, ?The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?200.317 through 200.327.? Condition The School?s procurement policies do not include wording or procedures to ensure the School is complying with the above standard. Cause A responsible individual is not monitoring Federal regulations to ensure the School?s procurement procedures are properly documented and in line with the regulations. Effect Not documenting these procedures could result in the School completing procurement transactions that are not in compliance with Federal regulations. Recommendation We recommend the School develop a written procurement policy that incorporates the Federal regulations identified above. School Response: We will update our current procurement policy to incorporate the Federal regulations. Implementation prior to June 30, 2020: Chief of Staff