Audit 295538

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-008 Improve Internal Controls Over Reporting Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients design internal controls to ensure that reports submitted to the State/Federal government are complete and accurate. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Key line items, specifically current period expenditures and total cumulative expenditures, included on the project and expenditure report submitted for quarter 2 of 2022 (April – June) did not agree to the general ledger. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, key lines items on reports submitted may not be complete or accurate. No questioned costs are reported as it is not quantifiable. Recommendation The City should design and implement an internal control procedure to ensure that reports submitted are complete and accurate. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-005 Limit Federal Cash on Hand Federal Agency: U.S. Department of Agriculture Cluster/Program: Child Nutrition Cluster Award Name: National School Lunch Program AL Number(s): 10.553/10.555/10.559/10.582 Award Year: 2022 Compliance Requirement: Cash Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients minimize the time elapsing between the transfer of funds from the State and the disbursement by the non-federal entity for direct program costs. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Federal guidelines indicate that cash balances should be equal to or less than the average of three months operating expenses. At June 30, 2022 the school lunch fund had cash balances exceeding these guidelines. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Federal funds may be on hand for an excessive period of time, which is inconsistent with Federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-005. Recommendation The City should address the weaknesses in internal controls in order to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-008 Improve Internal Controls Over Reporting Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients design internal controls to ensure that reports submitted to the State/Federal government are complete and accurate. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Key line items, specifically current period expenditures and total cumulative expenditures, included on the project and expenditure report submitted for quarter 2 of 2022 (April – June) did not agree to the general ledger. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, key lines items on reports submitted may not be complete or accurate. No questioned costs are reported as it is not quantifiable. Recommendation The City should design and implement an internal control procedure to ensure that reports submitted are complete and accurate. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-007 Improve Procurement Procedures Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Procurement Suspension & Debarment Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States AL Number(s): 84.027 Award Year: 2021 and 2022 Compliance Requirement: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context HVAC upgrades paid for by the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund and services paid for by the Special Education Grants to States grant did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement require¬ments. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-007, which applied to the Special Education Grants to States. Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.