In mild of remaining unanswered questions related to the embezzlement at KIPP DC of about $2.2 million in excess of an 18 thirty day period period of time (see here and here), the hottest out there audit raises additional considerations about KIPP DC’s capability and dedication to monetary transparency and competence.
KIPP DC was flagged in December 2021 for what independent auditors referred to as a “important deficiency.”
KIPP DC Public Charter Schools and Affiliate
Timetable of Results and Questioned Prices (Continued) Year Ended June 30, 2021
Section II. Economic Assertion Findings
Acquiring 2021-01—Search for Unrecorded Liabilities
Conditions: Centered on the principles contained within auditing standards commonly accepted in the United States and Governing administration Auditing Requirements, administration is accountable for the servicing of inner control more than economical reporting with the aim that fiscal statements are accurate below usually acknowledged accounting principles.
Problem: During our lookup for unrecorded liabilities, we pointed out design in progress action incurred by way of June 30, 2021, that was not recorded or correctly accrued for at June 30, 2021.
Bring about: Management did not have enough controls implemented all around the review of building contracts and commitments to make certain expenditures incurred, but not but invoiced were being adequately accrued for.
Result: The error unreported assets, particularly assets and gear, and liabilities by approximately $5,209,000.
Recommendation: We propose administration acquire supplemental controls more than the review of design contracts and commitments to be certain all expenses incurred are adequately recorded in the appropriate time period.
Sights of responsible people today: Management agrees with the acquiring and advice. See corrective motion program for even more information (p.8).
Given the truth that KIPP DC’s web belongings in 2019 were being more than $144,000,000, with more than fifty percent of that in cash or property that could be readily turned into dollars, it would look that some oversight would be forthcoming.
Except, of program, that KIPP DC’s corporate board is in location as a safety racket rather than general public accountability for the billions of public pounds that KIPP DC, Inc. has garnered.