Audit 310434

FY End
2023-06-30
Total Expended
$6.14M
Findings
4
Programs
11
Year: 2023 Accepted: 2024-06-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403261 2023-002 Significant Deficiency Yes P
403262 2023-003 - Yes P
979703 2023-002 Significant Deficiency Yes P
979704 2023-003 - Yes P

Programs

Contacts

Name Title Type
J9PMGBDSCA98 David Flynn Auditee
5083987610 Grady Connor Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate. The Dennis-Yarmouth Regional School District (the District) is a governmental agency established by the laws of the Commonwealth of Massachusetts, for the purposes of providing public education for grades kindergarten through high school grade 12. It is comprised of its member towns of Dennis and Yarmouth. All operations related to the District's federal grant programs are included in the scope of the OMB Uniform Guidance. The U.S. Department of Education has been designated as the District’s oversight agency for purposes of the audit. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Dennis-Yarmouth Regional School District for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), 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 Dennis-Yarmouth Regional School District it is not intended to and does not present the financial position, or changes in the financial position of the District.
Title: Cash and Non-cash Assistance - Child Nutrition Cluster Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate. The following define the cash and non-cash assistance provided by the U.S. Department of Agriculture's Child Nutrition cluster – School Breakfast Program (Assistance Listing #10.553) and National School Lunch Program (Assistance Listing #10.555). Cash assistance - expenditures represent federal reimbursement for meals during the year. Non-cash assistance - represent food commodities received under a state distribution formula and are valued at federally published wholesale prices for purposes of this schedule. Such commodities are not recorded in the financial records, although memorandum records are maintained.
Title: Subrecipients Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate. The District did not have any subrecipients for the year ended June 30, 2023.
Title: COVID-19 pandemic related funding Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate. Programs identified in the accompanying Schedule of Expenditures of Federal Awards which have been funded pursuant to federal legislation as a result of the coronavirus pandemic have been specifically indicated with the prefix- COVID-19.

Finding Details

Criteria: Established internal controls surrounding documentation of federal award compliance requirements should ensure that all charges to Federal awards for salaries and wages are based on records that accurately reflect the work performed. Accordingly, time and effort documentation are required to be maintained which clearly documents “after-the -fact” determinations of amounts for which individuals have worked on the federal program. These records should correspond with the internal control policies and procedures maintained by the District. Condition and Context: During our current year audit, we noted (2) instances of time and effort certifications associated with personnel charged to the Title I program were signed only by the employee and not signed by supervisory personnel. The additional (4) personnel tested were appropriately signed by both the employee and supervisory personnel. W also noted the District made certain adjusting entries during the year reflecting corrections of payroll charges to the grant. Additionally, the District was unable to file the required final reporting associated with the various grants within the 60 days. Cause and effect: In the previous fiscal year (fiscal year 2022), the District implemented a formalized grants manual. However, the District has experienced significant turnover in personnel in recent years. Current personnel continue to work to cleanup grant reporting within the ledger and reporting to the pass-through entity. Based upon our discussions with personnel, additional steps are being made to ensure personnel are charged appropriately within the accounting system annually, thereby eliminating the need for certain journal entry reclassifications. Perspective Information: In the prior year there was a finding related to time and effort certifications related to the SPED IDEA grant. In the current year, the District no longer charges personnel costs to the federal award. Findings related to continued enhanced formalization of grant compliance was previously reported. During fiscal year 2022, the District implemented a grants manual. Questioned Costs: None. Auditor’s Recommendation: We recommend the District review the adopted grants manual on an annual basis. The design and implementation of internal control over grant compliance is the ongoing responsibility of management. Grant personnel should work closely with accounting and business office personnel to ensure all activity is posted to the proper grants/accounts as incurred and all reporting can be completed in a timely manner. We recommend additional approval of subsequent reclassification of activity (non-standard journal entries). District personnel should review established policies and procedures on a routine basis to not only ensure the District’s compliance with all aspects of established policies and procedures, but also the ever-changing requirements of federal grant programs. pursuant to OMB. We recommend all District established policies and procedures be reviewed on an annual basis to ensure continued compliance with each grant’s specific requirements and requirements pursuant to OMB. We recommend an additional centralized monitoring program be established to ensure the Districts compliance with all federal programs.
Criteria: OMB guidelines generally requires the District’s Single Audit to be completed and filed by March 31 of the following year (March 31, 2024). Condition: The District was unable to meet the filing deadline in the current year. Effect: The District’s filing is considered late by OMB. Auditor’s Recommendation: We recommend the District work to meet the required filing deadline.
Criteria: Established internal controls surrounding documentation of federal award compliance requirements should ensure that all charges to Federal awards for salaries and wages are based on records that accurately reflect the work performed. Accordingly, time and effort documentation are required to be maintained which clearly documents “after-the -fact” determinations of amounts for which individuals have worked on the federal program. These records should correspond with the internal control policies and procedures maintained by the District. Condition and Context: During our current year audit, we noted (2) instances of time and effort certifications associated with personnel charged to the Title I program were signed only by the employee and not signed by supervisory personnel. The additional (4) personnel tested were appropriately signed by both the employee and supervisory personnel. W also noted the District made certain adjusting entries during the year reflecting corrections of payroll charges to the grant. Additionally, the District was unable to file the required final reporting associated with the various grants within the 60 days. Cause and effect: In the previous fiscal year (fiscal year 2022), the District implemented a formalized grants manual. However, the District has experienced significant turnover in personnel in recent years. Current personnel continue to work to cleanup grant reporting within the ledger and reporting to the pass-through entity. Based upon our discussions with personnel, additional steps are being made to ensure personnel are charged appropriately within the accounting system annually, thereby eliminating the need for certain journal entry reclassifications. Perspective Information: In the prior year there was a finding related to time and effort certifications related to the SPED IDEA grant. In the current year, the District no longer charges personnel costs to the federal award. Findings related to continued enhanced formalization of grant compliance was previously reported. During fiscal year 2022, the District implemented a grants manual. Questioned Costs: None. Auditor’s Recommendation: We recommend the District review the adopted grants manual on an annual basis. The design and implementation of internal control over grant compliance is the ongoing responsibility of management. Grant personnel should work closely with accounting and business office personnel to ensure all activity is posted to the proper grants/accounts as incurred and all reporting can be completed in a timely manner. We recommend additional approval of subsequent reclassification of activity (non-standard journal entries). District personnel should review established policies and procedures on a routine basis to not only ensure the District’s compliance with all aspects of established policies and procedures, but also the ever-changing requirements of federal grant programs. pursuant to OMB. We recommend all District established policies and procedures be reviewed on an annual basis to ensure continued compliance with each grant’s specific requirements and requirements pursuant to OMB. We recommend an additional centralized monitoring program be established to ensure the Districts compliance with all federal programs.
Criteria: OMB guidelines generally requires the District’s Single Audit to be completed and filed by March 31 of the following year (March 31, 2024). Condition: The District was unable to meet the filing deadline in the current year. Effect: The District’s filing is considered late by OMB. Auditor’s Recommendation: We recommend the District work to meet the required filing deadline.