001Good afternoon. My name is Laura Kvassos. I am one of the lead auditors in the desk reviews team within financial compliance. This session we're going to go over the audit 2.0 um overview of the charter school data schedules. So this is primarily going to focus on step three, how to complete those data schedules for charter schools, more specifically how to complete them manually. So um the good news is for those of you who are familiar with the AFR submission and completing those data schedules in our legacy system is the charter school data schedules have not changed um a whole lot. Um there are two new schedules which we'll I'll spend some time on later in the presentation but um primarily they are the same. So you still have your uh individual charter school uh financial
002statement schedules your statement of financial position statement of activities and statement of cash flows B7 B8 B9. We still have our supplemental schedules, our B10 schedule of assets, B11 sk uh excuse me, B10 schedule of expenses, B11 schedule of assets, and now we have added a new schedule, B12, our budgetary comparison schedule. So, this is a supplementary schedule that has always been included in the AFR PDFs. Um, but we are now requiring that schedule be entered as a data schedule within step three. And I will go over that schedule later on. B19, B20, and B21 are largely unchanged. Those are our supplementary schedules. They're schedule real property ownership interest, related party transactions, and related party compensation and benefits. Um, these are only required to be reported uh if you have transactions to report. And we'll
003go into the J4 schedule. The selected state aotment programs is still required. The um what was previously known as B17 in our legacy system is now schedule K1, which is a schedule of expenditures of federal rewards. So this is applicable if you are a school that requires a single audit. Um you will only see the schedule if you've indicated yes uh a single audit is required in step one the preliminary information uh page and we went over that in our first session which is the overview of our AFR submission process. Then what was also known as B15A and B15B have been renamed to K2, our schedule of findings and question cost part one and K3, our schedule of findings and question costs part two. And then we have a one more new schedule which is
004our schedule M1 for the management letter comments. And this one is only required if applicable. So if you have indicated in step one that yes you have a management letter comment um then you are required to enter that comment in the M1 schedule and RQ1 is also a required data schedule. This schedule is not required to be included in your AFR PDF. This is we only require these responses in step three. And I'm not sure if I have any governmental charter users here in this session today, but I will u go over the schedules required. Um and they are as I've listed the schedules for the charter school is how they are going to display um on within your uh step three page. So similarly for the governmental charter school, A1 B1 is largely unchanged
005from the legacy system. The order has now changed because we're going in kind of alpha numeric order. So, uh B19, B20, B21 are still required to be entered if you have transactions to report. And uh what I mean by that is um a lot of times you may include a schedule of real property ownership interest for example within your AFR PDF, but you actually list not applicable or you list none. And so if that's the case, we don't need any entry in in step three here. Um C1, our governmental funds balance sheet is still required for governmental charters. What was previously known as C1R is now C2 for the reconciliation of the balance sheet to the statement of net position. And what was previously C2 is now C3. statement of revenue, expenditures, changes in fund
006balances for governmental funds. And C4 is a new schedule reconciling the statement of revenues, expenditures, and changes in fund balance to the statement of activities. G1 is also a new schedule, and I did not highlight that. It's the budgetary comparison schedule for that general fund. J4 is still required. what was previously known as B17 is now K1 and previously B15A and B15B are now K2 and K3. So we renamed these schedules to be consistent with um how they were listed in the FASRAG and just to kind of keep them consistent across all LEAs. So these now align with uh the ISD data schedules. So they now all schools will see those K1 you know K2 K3 if applicable if they have that single audit M1 management letter which I'll go into later in the presentation
007and then our Q1. Okay, some new features with these data schedules and this is speaking more so from a user who's completing these manually. um you are required to fill out those schedules in order which is the order that I listed them a few slides ago. Uh they function navigating within the schedule is similar to how you would navigate an Excel spreadsheet. You can select tab to move to the right, select the inner key to move down. Um and the system will highlight applicable fields uh if it does not pass edit checks. Um, so we do have edit checks built into each of these schedules. Most schedules, and I'll go into some examples of the a kind of edit checks that you may run into within these schedules. The selecting next as you navigate through
008the schedules will trigger these edit checks. And so um and the system might have a short delay in processing these edit checks especially if you are um changing a field and then suddenly hitting next. Um so you you have to wait to make sure that these fields are are registered and and I can show you an example of that um as we go as I demo the system later in the presentation. Uh so most of these edit checks are usually um some errors, right? Making sure that your totals agree um either across columns, across rows. Uh but important to note that if the discrepancy is less than $100, the system will not give you an edit check error. Um so it will let you navigate to the next schedule. And then um these schedules now
009have autosave. So as you are entering them um if at any point during the session you need to leave you can select you can exit out of the system go back in and that data will be saved. Another new feature is going to be the introduction of prompts. So, manual entry users, um, especially for charter school users, you will first see this as you navigate through the B19 schedule, um, and then following B20 and B21. And the prompt for these schedules is just asking if you have if your AFR includes this schedule. So, the example that I have here is, does the AFR include a schedule of real property ownership interest? Select no if the school does not have any real property ownership interest to report. So this is um like I mentioned earlier where
010your AFR may have a schedule of real property ownership interest but that schedule says none or not applicable. And so in that case you would select no to bypass this schedule and move on to the next schedule. If you do have transactions to report, you would select yes, then okay, and it will take you to that schedule. And I will uh demo what this looks like later on in the in the uh presentation. The next prompt you'll see is regarding the K1 schedule and this is if a single audit is required. And so this is if your schedule ha if your schedule of expenditures of federal rewards which is the K1 schedule if it includes a pass through to subreients column. So the user would either select yes to display that column or no to
011hide that column and move continue on with the schedule. And for the most part, um, from my experience with charter school AFRs, you typically do not have this schedule, uh, that this particular column. Um, so what this column would look like, um, I I couldn't even find an example within the charter schools that had this. Um so basically you would see a fourth column um uh next to federal expenditures which is a separate which is a pass through to subreients column and kind of in that specific amount that is passed through to subreients. So it's federal expenditures and then that those expenditures that are passed through to subreients. Um again this is very rare um but you will if you're completing these schedules manually you will see this prompt. Um, and so you can just
012refer back to your schedule of expenditures of federal awards within your AFR PDF. If you do not see this column, then you can just select no and okay and continue with your entry into the K1 schedule. Okay. So now I'm going to spend some more time on the newer schedules for charters starting with B12 which is the budgetary comparison schedule. And this is I want to say it's going to mirror your budgetary comparison schedule within your RP within your AFR PDF with one minor change. And um for the for the most part, your budgetary comparison schedule is likely going to include four columns, which is your columns one and two, your budgeted amounts, your original budget, your final budget, your column four, your actual amounts, and column five, your v variance between the final budget
013to actual is typically what your budgetary comparison schedule looks We are asking schools to complete column three which is to have include that variance between the original and final budget. And this is because we do review these variances uh in our AFR review. Um, and we uh will typically look for a written explanation if these variances are material either between the original and final budget amounts or between the final budget amounts and actual budget amounts and this is just consistent with the FASRG. So, the newer version of the FASRAG um will have a template of this B12 schedule and it will include all five columns. So, hopefully um going forward in future years, your AFR PDF will also include this column. Um but this is something that you may have to um enter manually because
014it's not going to be included in your uh AFR PDF. And so here's an example here where as I um as I mentioned, you know, typically it's gonna your budgetary comparison schedule is going to include these four columns. Uh we do ask that you also complete a variance between the original and final budget amounts. And then uh speaking to an example here of what those uh edit checks look like. So the system again is going to highlight those fields if the schedule does not pass the edit check. So here in this particular example, this the sum of total expenses here does not agree. It's because there is a number missing. So the system highlighted red to indicate what that error is. Um, and then in my demo, I'll show you uh where you can actually
015pull up that list and see kind of what the formula is uh what the system is doing to come up with that error. And now we're moving on to the K2 schedule of findings and question costs. So, um I'm going over this one just because there there were some changes to it. Um, this is a schedule that was already included in the legacy system. So, charter schools were already entering this information. Um, but I do just want to go over some minor changes with it. So, the schedule of findings and question cost is going is laid out to mirror the uh summary schedule of findings and question cost that is included in uh your AFR PDF. Um, so here's an example. So the first part of it is going to be um on the financial
016statements, a summary of the auditor's results of these financial statements. And then the uh federal awards section is usually on that second part. And so we've kind of laid out this schedule to uh to kind of mirror the layout of that summary of auditors results. And I say uh part one because so as you can see part A is a summary of audited result summary of auditor's results excuse me. Part B part C is where we get into the financial statement or federal award findings that is going to be entered later which I'll I'll cover here in just a second. But part A in this particular schedule of findings and question costs is what we are looking for on the K2 schedule. Right. Um so again, that summary is going to be where you're going
017to find that information. And um this is typically included with every AFR PDF regardless if if there is a single audit or not. Uh, a lot of times the auditors may just include this top section and and you won't see you won't even see a federal award section or they'll include a federal award section and just say not applicable because a single audit was not required. Um, now if a single audit is not required then the auditor is actually not required to even include a schedule of findings and question costs. say if a single audit is not required and there were no findings, um the auditor may not even include this schedule in your AFR PDF. Um if that is the case, you are still required to fill in this top section regardless of whether
018that schedule is included in your AFR or not. So if you do not have a a single audit, you didn't have any findings and so your auditor did not include a a schedule of findings in question cost. Um I would recommend that you consult with your auditor to help you complete this portion. Um it is it is pretty straightforward, right? You're entering the auditor's opinion. If it was an unmodified opinion or modified, you would select that drop down. you're entering if there were material weaknesses or significant deficiencies, if there was a non-compliance material to the financial statement. So, these uh are still required to be completed even if you do not have see this schedule within your AFR PDF. Um, so you if you feel comfortable filling that out on your own, that's great. If
019not, you can consult with your independent auditor to make sure that you are completing this schedule correctly. And another thing to note is um that this bottom section of this schedule, this federal awards section here that goes over the uh the if there are any internal control uh issues over major programs or the type of auditor's report issued on compliance for major programs, the audit findings that are reported in accordance with uniform guidance, dollar threshold, all of this related to the federal rose program will not appear if you select uh no to step one. So in step one we do ask a few questions. Um one of them being was a single audit required. So if you are responding no then you will only see this tops financial statement section of this schedule. If you
020select yes, you will see the entire schedule and be required to complete um that federal awards section as well. Okay. And I think we've gone over kind of where to find that information on your uh summary of auditor's results. Another thing to note here is um we do ask for you to identify the major programs listed within those summary uh within the schedule of findings and question cost. So within your schedule you will see a list of ma identification of major programs. So like here in this particular example, there was an SRO program that was included um in the single audit. So you would enter this program and I'll go over that in my demo on this bottom section in the identification of major programs. You would list the ALN number, the name of the
021federal program and the federal expenditures. Now, the federal expenditures are typically not listed on the schedule of findings and question cost, which is common. Um, so you will have to go back to your schedule of expenditures of federal awards to enter that amount. And then like I said, this bottom section of the schedule of findings and question costs is usually reserved for financial statement bindings or federal award findings and those would be entered in the K3 schedule. So the K3 schedule is reserved for entering those findings. And if your independent auditor did not report any findings in your audit, um then you can just simply select next and leave the schedule blank. You're not required to make any entries in the schedule if you do not have any findings to report. The schedule is dynamic.
022So you will um select add if so we do default in list and give you five line items to enter your findings. Um if you do have more then you would select add to increase those additional rows as needed. The top portion is going to be reserved for financial statement findings. So make sure that you are in the correct section when entering those findings. The bottom section will uh start at row 31 and is and is also dynamic and you can enter as many rows as needed. I believe we give you 30 and I'm I don't believe we've ever had a school have to enter that many. So I think we've given you the appropriate number of rows. Um one thing that you'll see here is that we do have this row which I'll I
023can show you when we demo the system. uh a a row below these headers that expands and collapses that'll give you a brief description of what we are asking for within these particular fields. So um here for the audit finding reference number, you're entering the reference number from the audit binding description, you would enter the text reported for condition of the finding. Select yes if the auditor identified the audit binding as a material weakness in the audit report PDF. If not, select no. Um so this does help you in um on how you complete each of these fields, but again you can work with your independent auditor um to uh get this schedule entered correctly. Next we have the management letter. Uh again this schedule will display if you did indicate yes that you the
024auditor issued a management letter that included comments on step one the preliminary information page. So if you selected yes here the M1 schedule will display and you will be required to enter those management letter comments. And so a little bit about what we're looking for with management letter comments. Um a lot of times a independent auditor will issue a management letter and it may or may not even have comments within the the letter. It's um it may just be something that's a standard issue that they issued a management. they may have uh additional comments included that they will indicate are um actual deficiencies or recommendations. Um so use your best judgment on the comments that uh you that you enter within this particular schedule. So what I've included here is an example. This particular auditor
025is was uh gracious enough to actually include a table within their management letter that actually provided a rating system. So they issued they applied their own reference numbers and a rating and in the legend above you see the SD is a significant deficiency and the D here is a control deficiency. And within the finding or deficiencies that they've included um you do see here this significant deficiency is uh in the item noted and and in the suggestion they put refer to the schedule of findings in question cost and so that is because this is a significant deficiency that was included in the schedule of findings. So even though this line item is in the management letter, you would have like you would have already entered this finding in the K K3 schedule. So you do
026not have to enter this again on the M1 schedule. But if you go to the next line item, this item was considered a deficiency and does include um a comment on, you know, what was noted and what was recommended. And so this bottom one, the 2024-002 is what you would enter on the M1 schedule. And this M1 schedule is pretty straightforward. You have we do have a column above or excuse me, a row below the header to expand or collapse, which just gives you some additional information on how to answer this really more if it was a prior year management letter comment or not. But you're just entering the reference number if it's available. Again, some auditors will provide that information. Some will not. You would just enter the management letter comment description. This is
027a text field. Um, and then select yes or no if it was a repeat from the prior audit. If a reference number was not provided, you can just simply create your own uh numbering system. We recommend ML1, ML2 um as uh as you enter those comments. And again, this is a dynamic schedule, so you would select add below to add additional rows as needed. Okay, so I I did see a few questions here. Um I'm not sure. I know Iris is on and may have been answering them, but is there anything that has not been answered that? Anyone have any questions before I go into actually demoing the system? Okay, great. Okay. So I am going to go as a charter AFR user in our test environment. And here you see um the charter AFR
028user has access to three pages. The AFR page, district and campus improvement plans and the upload AFR letter response. The latter 2 will be available at a later date. Um so for right now I am just using the AFR button. And then we have our AFR process progressive steps here. So we are focusing on step three. And actually before I do that, let me go back into step one to show you here. I have on step one selected yes, a single audit was required. So my schedules will display this K1 schedule and as well as parts of the full schedule for K2 and then my auditor issued a management letter that included comments. So I selected yes to that. So my K1 K2 schedules will show and my M1 schedule and then again we are
029focusing on completing these schedules manually. So at it will start display the first schedule. You do have to navigate uh through each schedule in order. Uh so I'm going to start off with the B7 state of financial position. This is largely unchanged from the legacy system. And so I am I would just take my AFR PDF and you know navigate to that schedule and enter those entries accordingly. And this schedule is pretty straightforward. We do have some edit checks that are on really the uh just summing up the columns. So here I've added some investments. I'm going to select next and I run into an error. So the system edit check has found errors on your schedule. These fields will highlight. So let's take a look. I can select cancel or X here to exit
030out. And if I scroll down, I see where the error is. So um that may be difficult to read, right? I hovered over the highlighted field. it did display the uh the edit check. Um so what I can do is when I select error list above here, I then see what that formula is. So I I see what the system is trying to do. Um and so it's saying 1299 total. So 1299 is the data control for total current assets and column one is the total here. and it says colon the sum of and then it's just giving me the list, right? And so basically it's the sum of these current assets does not equal total current assets. So that's what this formula is telling me. And I know because I added investments but did
031not update the total. So if I remove that field and you notice even though I've removed it, it does not change the error. I I still have the error. So, I do have to navigate out of that cell in order for the system to accept the updated field. So, now the error checklist has been updated. No discrepancies found. I can close this. And then if I scroll down, I I no longer have that total current that cell highlighted under total current assets. Similarly here with liabilities, we have the same edit checks. They're usually just some errors, right? Um going across or down the column. So I would select that error list to see 22.99 total. So if I come down to 22.99, the total current liabilities, the math does not check out. Okay, so B7
032is pretty straightforward. Next, we're going to B8. So, the big change with the B8 schedule is uh the addition of dynamic rows. Uh so, as you navigate through your statement of activities, you may have to enter uh changes in net assets, nonoperational activities, uh gain on the sale of property, loss on the sale of property. Um so for this in this particular example, this charter school had um a loss on the uh sale of equipment. Um sorry if you can't see that there. So we uh yeah loss on the sale of property and equipment for 434,000. So I have entered this but if I had two additional line items for non-operational activities I would simply select add and I now have an additional row to enter this information. So I have this text field open
033for me to gain on the sale of equipment you know and and enter that as as necessary. Of course, as I enter it, I have to be mindful to make sure that I am then uh adjusting my totals as I enter these. If um now we do have a max of five rows here for these changes in net assets. Um so if you do have more uh than five line items, then you may have to consolidate as needed. Um if I've entered too many um because maybe I I didn't realize I entered this again or entered this row twice. I have a delete button here. I can delete that row and that erases that data or clears that data. So that's for changes in net assets. Below I have additional dynamic rows uh for any
034adjustments to net assets. So I would select uh add here and I may have a prior period uh adjustment for whatever amount and I may then have excuse me to then my net assets as restated right so that's what I would enter so I have a five column Excuse me. Five rows that are dynamic. I enter as many as needed. Have to consolidate if I have more than five, but should only you only should really need one or two here. Um, and I can delete as necessary. See? And it does update your formulas as you enter. Okay, moving on to statement of cash flows. This one's pretty straightforward. Um, one thing to note here is that you do have to enter a a dash to indicate a negative number. Um, I think that's probably the
035most common comment I have in in these data schedules, at least in these this B9 schedule, is sometimes we'll just enter those values as they're reported, but kind of miss the the misindicating whether or not this is a negative number. So, use a dash uh not parenthesis to indicate a negative number. Um, and then you did see there was an edit check here. So we do uh the math to uh come to our net increase or decrease in cash flows here. Um so you do want to make sure that those totals agree. Now we're going to our B10 schedule of expenses. Uh, and this is similar. Uh, you would just enter your supplemental schedule. Thought I had bookmarks here. Yeah. So, you enter that information as is reported on your supplemental schedule. One thing I
036want to note here with this edit, this particular schedule includes an edit check that does refer back to a prior schedule. So, my total expenses on this schedule, the the 28,962 is going to tie back to my schedule of activities for this individual charter school, the 28962. Um, so that is the edit check within uh the system as well. So it's not only going to check whether or not your your total agrees across or down this column. It's going to check whether or not your total expenses has actually matches with the B8 schedule. So I added a million here to death service. I added a million to the total. So my total expenses agrees to these sum amounts. But I still have an error here. And if I select error list, it is telling me
037so my TE total expenses for total this total column. So the B B8 TE total and I'll like large that out. The B8 total expenses total does not equal the B10 total expenses total. So, um, that B8 is letting you know that it is referring to another schedule. So then I could I mean I could stay I could go back, right? And so go because it autosaves. So these changes I've made stay here. I can't go forward um until I address this error. But I can look back. So I have 2962 here. If I go back to my total expenses entered on my B8 schedule, then I can see here, yeah, my total I have 28,962. So now I'm going to just change that back. So now it's telling me my math is wrong, which
038understandable. Okay, no errors. And I don't know if you uh have picked up on this, but the system will update um those errors in real time as you make those changes. So, as you address, if you have multiple errors, as you address them, you'll start to see that error checklist get smaller and smaller with every adjustment. Okay. So now we have our schedule of assets. This is largely unchanged. We have some uh edit checks that check the totals down the columns. Um and I believe that's it. We do not check across uh the rows here. And this is the new schedule, the budgetary comparison schedule. So similarly with the B10 schedule, this one all also has an edit check that looks back to your other entries. So here on column 4, you're entering those actual
039amounts, the actual revenues, your actual expend expenses as they are reported on your statement of activities. And so what this system is going to look at, it's going to look to see that what you've entered on your B8 schedule um as your actual revenues um agrees with uh your actual amounts column. So I can do the same thing where I'm adding an another million here in federal revenue. I'm going to get an edit check on the amounts the the sum amount. They don't tie out. So that's fine because I increased it by a million. So I'm going to increase the total by a million. Well, now I still get another error because my B8 5,000 total. So the the 5,000 my total revenues in the B8 schedule does not agree with B12. So just be
040on the lookout for that. um because we do want those actual amounts entered uh on this particular column to agree and then again I think this particular school also does not have that third column and so that is something that you will just have to complete as you enter. Yeah. So this this goal they have their original and final budget amounts actual amounts and variance from the final budget. So you I you would have to go in and then just fill this out uh on your own. Okay. So once you get through the B12 schedule, the next schedule is the B19. And this is where you're going to see your first prompt. So I've actually already gone through and and completed these schedules. So it does have my my prior selection defaulted, but this will
041typically be blank. And if it was blank, I didn't enter yes, I didn't enter no, and I just tried to hit okay, it would give me an error cuz it does require a response. Um, and so let's see, does this schedule have So this this particular school has a schedule property ownership interest to report. So I'm actually going to select yes. And we do default five lines here. If I can select prior and go. So, if I then navigate back to this schedule and I select no, I don't have anything to enter. It's going to then take me to the next schedule. Uh, well, I've already entered data here. So, it is going to give me a prompt to let me know that, hey, if I'm removing this schedule, so any data here is going
042to be deleted, which is fine. I actually have not entered data. Um, so it's going to take me to the next schedule, which also requires a prompt, and that's the B20. Does the AFR include a schedule related party and a related party transactions? Select no. If if it does not, if I'm say, wait, I I want to go back. I kind of clicked through these too quick. If I just hit cancel, then that's going to take me back to the previous schedule, the B19 schedule, which is going to take me back to this prompt. So, let's enter. Uh, so I'm going to say yes. I I I selected no by accident. So, I'm going to select yes this time. And now I'm back on this B19 schedule. It defaults to five rows. Um, and then
043you can add additional rows as needed. This one I think will will take up to it takes quite a few. But so uh I have my fields here that are text fields. So I can enter in for the sake of time. I'm I'm not going to enter this exactly as it's reported. Um but so I have my description. Is it giving me an error here actually don't know why it's giving me that error. I may have gone back and forth way too many times for this system. But that's okay because we can just enter it on the next schedule. Okay, I select no to this one. I'm going to select yes to the related party ones cuz it does have the same layout. So it defaults to five rows. You can enter your related party
044information. So this one is the related party transactions. my name of relation to the related party the relationship and then you will see some drop- down fields here which uh limit your selections. So on the schedule related party transactions the type of transaction is either going to be financial or financial. They have a description of the terms and conditions. Enter the text as needed and these are open text fields. And I do believe they accept special characters as well. Yes. Okay. Source of funds. Here you select the drop down and you have some options. I have seen some transactions that are um both like state and local for example. So you would just use the the one that has the most that has the largest amount of funds. So if if it was funded primarily
045by local or majority of by local then you would select local. Um or if it was funded majority through state funds then you would select state. the payment frequency here. We've added some additional um selections from the legacy system to hopefully give you um some more accurate uh options. So, make sure you look at those closely and then you enter the total paid during the fiscal year princip principal balance amount here due. Um we do not have edit checks to sum those totals. So you would just enter those amounts as necessary. So I'm then going to go to the B-21 schedule. Again, this one similar to the B20. Uh I have I was, you know, messing with this earlier. So I have several rows here. Um but if I've entered too many rows, I then
046can just come down here and select delete and delete those as necessary. So if I scroll up, uh, one, two, three, columns 1, two, and three are similar to the B20 schedule. And then you would select if this is a compensation or benefit payment frequency. And this is an issue with that. Uh, there's a there is a bug in this schedule. We are aware of this one. um the description source of funds used and total paid. So the issue and test I think this uh we do have a fix it just hasn't been released into production is you may see select twice which isn't a a big deal but it's just we are aware that it is appearing twice. Uh, somebody have a question. Oh, I thought somebody had raised their hand. Okay, we can
047continue. Um, I will we'll have some time and we can go through uh and open up the floor for questions. So, the J4 uh select state aotment programs. So in this one uh the only thing I want to note here is that you do have to enter an amount. So um if you for example maybe do not have bilingual education aotment you don't have funds here. Um and so you're just like no this doesn't apply to me um you cannot move forward. Um you do have to enter an amount. Uh so we can see the error here. Um so the responses must be entered a positive or zero value. Um so if that is the case then I am just going to enter zero here and it will let me uh move on. Okay. So
048this is the uh K1 schedule. So again does your schedule include uh does your schedule of expenditures of federal awards include pass through to subreients column. I've previous selected no. Um I can select yes to to display that column for you. Um so here you see column four. You would just enter those expenditures that are passed through to subreients as needed with that total at the bottom. Um but for our purposes here again I I typically don't see this in charters. Uh so I'm just going to select no. Uh it will it is going to let me know like hey you've we've displayed this data. So if I'm selecting no it's going to remove it and delete the related data. Do you want to continue? Yes, I'm I'm fine with that because it's just deleting
049the data that was reported in column 4. Okay. So now we're at the K1 schedule. Um, and this is largely unchanged with the exception of that prompt. So, uh, you should have no trouble filling this one out. And then we do have your total expenditures. So, that's the edit check there is to make sure that the amount of federal expenditures you've entered does agree with the total federal expenditures. K2, schedule of findings and question costs. So one thing I want to note here is that we do have an edit check within the major programs that are entered um on this schedule. So one is the is totaling up the sum, right? Whether the amount of federal expenditures I've entered here in each of these rows agrees with the total major the total that I've entered
050here, but it also checks the compliance requirement. So within your schedule of expenditures of federal awards, if a single audit, excuse me, within your schedule of findings and question cost, if your single audit um if your school required a single audit, then you'll have an indicator of whether or not your audit qualified uh as low risk. So the auditor will indicate that on the schedule of findings and question cost. they will say yes or no. Um and so based on that response I may have there is a a compliance requirement that the total amount of major programs included in this in a single audit meets a threshold whether it's 20% or 40%. So if the auditor qualified as a low-risisk audi then that amount is 20% of your federal expenditures. If they did not if
051it's they if they are high risk then it's going to be 40%. So I was previously I selected yes I'm a lowrisk audity I changed it to no so this high risk and notice this edit check appeared below on my total. So I'm going to select this error list and see what that is. And it's telling me the amount of major programs audited does not meet the 40% minimum testing requirement. So this is a new edit check included in this K2 schedule. So you want to make sure that you are entering these federal expenditures carefully. Then again, I recommend that you consult with your independent auditor on completing this particular schedule to ensure that you are entering the correct amount of audited major programs and you're entering the correct amount of total uh federal expenditures
052in K1. So, I'm going to go back to yes, and that's going to eliminate that edit check because I'm low risk and this amount is meeting that minimum requirement. And then again, what I'm using here is I'm using the identification of major programs listed in my schedule of expenditures, excuse me, schedule of findings and question costs. So, I'm entering those And I'm going to go back to my K1 schedule. So I kind of have to use these hand in hand in order to complete this portion out. So I'm going to enter I'm going to use my schedule expenditures of federal awards in order to enter and I'm sorry I keep getting off page here. Okay, now the the cycle two has already been used up. That one's over >> and everything, but >> came off
053mute. Do you have any questions? >> The Okay. Uh, sorry. I'm trying to get this viewable. So, title one grants is one of the programs here. So, I've entered uh that 84010A and that total amount there. I know it's kind of hard to follow along here. Um but then within the second major program is a cluster and one of the things that >> you quit sharing your screen. Did you mean to quit sharing? >> Oh, sorry. No, I did not. apologize. Now we're almost kind of up on time. Thank you for letting me know that. Um I can't see what what I'm sharing. Okay. So, uh, what I'm trying to do here is I'm trying to show that, uh, I am using the schedule of findings and question costs, um, in conjunction with my schedule
054of expenditures of federal awards in order to complete this portion of this K2 schedule. Um, and so one of the major programs was a cluster was a child nutrition cluster. We've updated this particular field um because it used to say cluster on it. Um it now says name of federal program and that was intentional because we we do not want to just enter child nutrition cluster as one line. We we do want these uh major programs entered individually. Um and so like here these these uh if the number is the same I guess that's kind of the rule of thumb here is that if the major program is uh is if it's the same number then you can consolidate those into one line item. So 10 this these two lines could basically be the same.
055The description and the ALN number are the same. Um I entered these backwards. Um but uh that's the the point I'm trying to make here is that we've removed cluster. So do not enter uh enter just child nutrition and and move on. We do want you to break it out uh by those uh individual major programs. So I'm going to kind of move ahead here just for the sake of time. Um next we have the K3 schedule. So this is where you would enter those financial statement findings and federal award findings. And again, it's broken up into two sections. So you could clearly see where I'm going to enter my federal award findings at this at the bottom part here where I'm going to enter my financial statement findings. And this is where I said
056we have a row at the bottom below the header that it's a little plus sign that I can expand in order to kind of get an additional description of how I should respond to these. and the schedule the findings and question causes you can normally get enough information um within the findings. Um so the the auditor will say this is a significant deficiency in internal control over compliance. Um this particular one said and compliance finding so I know it's a compliance finding. I know it's a significant deficiency in internal control. Um so that is you know if I go down here to my federal award I can I can see that that this is uh I can select yes this is significant deficiency and then so if the auditor identified an instance of non-compliance that
057is material I would select yes here if the non-compliance is not material I select no um so then I would say here well they did say it's compliance um but I don't know if it's material material or not. And I can go back here to this federal award section and they may indicate that it's material. I may also indicate it within the auditor report um because you'll actually see in the potion in the opinion the school complied in all material respect. So if they're providing this opinion within that single audit report, then it's not a material compliance finding. But again, you can consult with your auditor because as you see, I'm I'm navigating kind of multiple schedules. I'm navigating the auditor report to help complete this K3 schedule. Um, so I do recommend you work
058with your auditor to ensure that you are completing this correctly. Um, and um, you can also always uh, email us with any questions you have if you're unsure. So, I'm going to select next here. I'm going to go into the M1 schedule. So this is a uh as I mentioned before this is if your auditor issued you a management letter and and you said yes on step one. You'll see this schedule. I can enter the finding reference number uh the comment description here and then again this is a collapsible column to give me a little bit a little bit more information of uh how I'm answering these. So, if it was a prior year management letter comment, I'm going to select yes or I'm going to select no. Um, and then I can move on.
059RQ1 is largely unchanged. You do have to include a response here. Um, so you're either going to select yes or no, but okay. Sorry, I this I went over time here, but do we have uh any any questions that weren't already answered in the chat? Whoops. Okay, great. Um I'm going to stay on for a few more minutes if you have questions. Um, yes, we will try to get these recordings posted to the website as soon as possible or at least the presentations. I know those can get posted pretty quickly. Um, the videos may take a little bit longer. Um, just they they have to get reviewed, but um, but yes, we will try to get that later in later on this week. Um, I'm leaving my contact up, so if you can screenshot it,
060write it down, let you can also email me if you have any questions as you complete your submissions. Again, the deadline is February 27th. Uh that is when all submissions are due. That is also the same deadline for uh charter first. Um so thank you. Thank you everyone for attending especially those that have attended all three sessions. Take care.