2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-002 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance
Criteria: Per 7 CFR Part 225.9 (d)(5), the District must retain records that support its claims for meal reimbursement.
Condition: The District’s school lunch office maintained production records and manual count sheets for the elementary school and high school instead of using the point-of-sale system for tracking student meal counts.
Cause: The elementary school and high school utilize manual counts to track meals for reimbursement.
Effect: Manual records are subject to clerical and other errors which could lead to inaccurate claims for reimbursement.
Questioned Costs: None
Perspective Information: The District started utilizing the point-of-sale system in the elementary school and high school starting in the FY25 school year.
Repeat Finding from Prior Year: No
Recommendation: The elementary school and high school should utilize the point-of-sale system for tracking student meal counts.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.
2023-003 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
COVID-19 – Education Stabilization Fund – ALN 84.425
Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award.
Condition: Two final financial reports due during the prior fiscal years were not submitted.
Cause: A lack of formal reconciliation and review process for grants.
Effect: The District is not in compliance with reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-002.
Recommendation: The District should implement procedures to verify that reports are completed and submitted to the oversight agency within the prescribed deadlines.
Views of Responsible Official: Management agrees with the finding.