Audit 304816

FY End
2023-06-30
Total Expended
$2.58M
Findings
4
Programs
15
Year: 2023 Accepted: 2024-04-29

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
394955 2023-002 Material Weakness - B
394956 2023-003 Material Weakness - B
971397 2023-002 Material Weakness - B
971398 2023-003 Material Weakness - B

Contacts

Name Title Type
EDRKFKAPJLJ5 Chris Locarno Auditee
8024335818 Samantha Hillman Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the Supervisory Union’s federal award programs have been charged with indirect costs, based upon a rate established by State of Vermont. The Supervisory Union has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Central Vermont Supervisory Union under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Central Vermont Supervisory Union, it is not intended to and does not present the statement of revenues, expenditures, and changes in fund balance of the Central Vermont Supervisory Union
Title: Note 2 - Summary of Certain Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the Supervisory Union’s federal award programs have been charged with indirect costs, based upon a rate established by State of Vermont. The Supervisory Union has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 – Expenditures to Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the Supervisory Union’s federal award programs have been charged with indirect costs, based upon a rate established by State of Vermont. The Supervisory Union has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The Supervisory Union provided federal awards to subrecipients as follows: AL Number Paine Mountain School District Echo Valley Community School District Total 84.010A $ 338,723 $ 65,352 $ 404,075 84.367A 22,100 - 22,100 $ 360,823 $ 65,352 $ 426,175
Title: Note 4 – Scope of Audit Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the Supervisory Union’s federal award programs have been charged with indirect costs, based upon a rate established by State of Vermont. The Supervisory Union has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The Supervisory Union is an independent municipal corporation. All federal grant operations of the Supervisory Union are included in the scope of the single audit.
Title: Note 5 – Non-Monetary Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the Supervisory Union’s federal award programs have been charged with indirect costs, based upon a rate established by State of Vermont. The Supervisory Union has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. For the year ended June 30, 2023, the Supervisory Union received food commodities totaling $49,486.
Title: Note 6 – Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the Supervisory Union’s federal award programs have been charged with indirect costs, based upon a rate established by State of Vermont. The Supervisory Union has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the Supervisory Union’s federal award programs have been charged with indirect costs, based upon a rate established by State of Vermont. The Supervisory Union has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Criteria: According to 2 CFR section 200.430.(i) the Supervisory Union must maintain the records it generally maintains for expenditures. Condition: The Supervisory Union expended funds from the ESSER II grant to pay expenditures. In our sample of expenditure disbursements, we found an instance where we were unable to verify supporting approval of a disbursement. Context: The audit identified disbursements that were not supported by documentation and approval. Effect: If disbursements are not supported by documentation and approval, they may not be properly safeguarded, and the Supervisory Union may not comply with the federal allowable costs rules. Cause: Unknown. Recommendation: We recommend that the Supervisory Union develop a system to make sure that proper approved invoices are obtained in a timely manner.
Criteria: Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud. Condition: In our sample of payroll disbursements, we found an instance where the amount paid to an employee did not reconcile to contracts and/or timesheet. Context: The audit identified disbursements that could not be reconciled with an approved contracts and timesheets. Effect: The designed and implementation of internal controls did not allow management or employees, in the normal course of performing their assigned function, to prevent, or detect and correct, misstatement on a timely basis. Cause: Unknown. Recommendation: We recommend that the Supervisory Union evaluate its design and implementation of internal control to allow management or employees, in the normal course of performing their assigned function, to prevent or detect and correct, misstatement on a timely basis.
Criteria: According to 2 CFR section 200.430.(i) the Supervisory Union must maintain the records it generally maintains for expenditures. Condition: The Supervisory Union expended funds from the ESSER II grant to pay expenditures. In our sample of expenditure disbursements, we found an instance where we were unable to verify supporting approval of a disbursement. Context: The audit identified disbursements that were not supported by documentation and approval. Effect: If disbursements are not supported by documentation and approval, they may not be properly safeguarded, and the Supervisory Union may not comply with the federal allowable costs rules. Cause: Unknown. Recommendation: We recommend that the Supervisory Union develop a system to make sure that proper approved invoices are obtained in a timely manner.
Criteria: Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud. Condition: In our sample of payroll disbursements, we found an instance where the amount paid to an employee did not reconcile to contracts and/or timesheet. Context: The audit identified disbursements that could not be reconciled with an approved contracts and timesheets. Effect: The designed and implementation of internal controls did not allow management or employees, in the normal course of performing their assigned function, to prevent, or detect and correct, misstatement on a timely basis. Cause: Unknown. Recommendation: We recommend that the Supervisory Union evaluate its design and implementation of internal control to allow management or employees, in the normal course of performing their assigned function, to prevent or detect and correct, misstatement on a timely basis.