BALL CHARTER SCHOOLS (DOBSON) ACADEMY

January 19, 2022 We have prepared the following corrective action plan as required by the standards applicable to financial audits contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Specifically, for each finding we are providing you with the names of the contact people responsible for corrective action, the corrective action planned, and the anticipated completion date. 2021-101: Equipment and Real Property Management (noncompliance and material weakness in internal controls) Recommendation: We recommend the School establish a written policy requiring records for property and equipment purchased with federal funds be maintained in accordance with 2 CFR section 200.313(d)(1). Action Taken: Currently we subscribe to the Arizona School Boards Association policy bridge. The current policy in Section D-Fiscal Management/DID/Inventories states the acquisition threshold for Ball Charter Schools is $1,000 or greater and that capitalized items purchased with federal funds shall have a threshold of five thousand dollars ($5,000) or greater and all procedures related to federal dollars shall use Education Department General Administrative Regulations (EDGAR) and the Code of Federal Regulations (CFR) Procedures. Ball Charter has created an inventory system including asset tags for items purchased with federal dollars that includes the date purchased, date asset will be full depreciated, federal source of funding, cost and descriptor. The asset tags include a QR code and duplicate code is included in a binder at the central office with the same information. Previous items purchased with federal dollars have been tagged in the Fall of 2021 and future purchases will be included in the same process. Contact person: Annie Gilbert Completion date: December 31, 2021