Audit 315563

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Education Stabilization Fund - Passed through the Pennsylvania Department of Education COVID-19 - Governor’s Emergency Education Relief Fund ALN 84.425C; Contract #252-20-0141; Grant Period 03/13/20 - 09/30/22 COVID-19 - Elementary and Secondary School Emergency Relief Fund (ESSER II) ALN 84.425D; Contract #200-21-0141; Grant Period 03/13/20 - 09/30/23 COVID-19 - ARP ESSER ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER After School Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria In accordance with Uniform Guidance cost principles, the District is not allowed to charge costs to a grant that are reimbursed by another funding source. Condition The District charged over 100% of the employer paid retirement costs to the grants. The Pennsylvania Department of Education (PDE) reimburses the District approximately 55% of the retirement costs annually. As a result, the District is only permitted to charge the unreimbursed 45% of retirement costs to the grants. Cause The District did not have review procedures in place to identify the errors in journal entries or to monitor that only 45% of the retirement costs were allowed to be charged to the grants. Effect Unallowable costs were charged to the grants. Questioned Costs ALN 84.425C; Contract #252-20-0141 - $2,373 ALN 84.425D; Contract #200-21-0141 - $78,902 ALN 84.425U; Contract #223-21-0141 - $44,757 ALN 84.425U; Contract #225-21-0141 - $250 Context Total retirement costs associated with the salaries charged to the grants was $206,218. Of this amount approximately 55% was reimbursed by PDE, leaving $92,798 allowed to be charged to the grants. The District charged a total of $219,080 retirement expense to the grants, resulting in $126,282 unallowable costs charged to the grants. Repeat Finding No. Recommendation We recommend the District identify all funding streams and have a process in place to ensure that allowable costs are only charged to one funding stream. We also recommend a procedure to be put in place to have a person independent of report preparation review cost reports and underlying expenditures. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.

Federal Program Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA). Condition The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA. Effect Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended. Questioned Costs None. Context A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity. Repeat Finding No. Recommendation In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger. Management Response See corrective action plan included in this report package.

Federal Programs Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173 Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425 Criteria Per the Uniform Guidance 2 CFR 200.512, an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The District did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2023. Cause The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, the District’s financial statement audit was not completed until November 2023 and the Uniform Guidance audit was not completed until June 2024. Effect The District was not in compliance with the requirement to submit the data collection form and reporting package by March 31, 2023. Questioned Costs None. Context The District’s fiscal year end is June 30, 2022, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s report or March 31, 2023. Due to significant turnover in the business office positions and resulting delay in completing the audit, the District’s Uniform Guidance audit was not completed until June 2024, resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the District review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response See corrective action plan included in this report package.