Laupahoehoe Community Public Charter School

Finding 2019-001: Internal Control over Federal Awards; Title I, Grants to Local Educational Agencies, State Fiscal Stabilization Funds- CFDA 84.010, and Education and Preschool Development Grant/Special Education-Grants to States (IDEA, Part B)/Special Education Project cluster ? CFDA 84.173/84.027 Criteria: Part 200. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart F. Audit Requirements subgroup 47. Auditees Section 200.510, Financial statements: The auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502 Basis for determining Federal awards expended. Condition: During the course of the audit, it was noted that management had not prepared the Schedule of Expenditures of Federal Awards. Additionally, the School does not have procedures in place to ensure the Schedule of Expenditure of Federal Awards is complete and accurate. Potential Effect: As a result of the condition above, it is feasible that Management was not aware of some of the compliance requirements pertaining to federal funds. Context and Cause of Condition: During the fiscal year, there was turn over in the key finance position. Management did not track the amount of federal funds expended during the fiscal year and was not aware of the CFDA numbers associated with them. Questioned Costs: None Recommendation: We recommend Management establish procedures and controls to properly identify the funding source of all grant awards and the applicable CFDA numbers. Management should track the federal funds it receives and review the applicable compliance requirements to insure proper grant spending, monitoring and reporting. See Management?s Response and Corrective Action Plan on page 26.