Audit 350800

FY End
2024-06-30
Total Expended
$741,330
Findings
8
Programs
8
Year: 2024 Accepted: 2025-03-31

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
541991 2024-001 Significant Deficiency - B
541992 2024-001 Significant Deficiency - B
541993 2024-002 Significant Deficiency - B
541994 2024-002 Significant Deficiency - B
1118433 2024-001 Significant Deficiency - B
1118434 2024-001 Significant Deficiency - B
1118435 2024-002 Significant Deficiency - B
1118436 2024-002 Significant Deficiency - B

Programs

Contacts

Name Title Type
Z6D6TK69CNL6 Peter Daly Auditee
6319981371 Jill S. Sanders, CPA Auditor
No contacts on file

Notes to SEFA

Title: OTHER DISCLOSURES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the Schedule at the fair market value of commodities used, which are amounts provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: Bridgehampton Union Free School District has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year end.
Title: TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the Schedule at the fair market value of commodities used, which are amounts provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: Bridgehampton Union Free School District has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District expended $438,900 for project 0187-24-8003, which was the amount of the original award for the period of July 1, 2023 through, and including, June 30, 2024. Subsequent to the expenditures taking place and the annual program completion, the District was informed by New York State that upon reconciling the actual number of participants with the targeted number of participants on which the program’s annual award was based, the program did not meet the participation goals for the year. The amount of the award was reduced by $21,945 to $416,955. Since that communication took place subsequent to June 30, 2024, the general fund will financially support the grant reduction for this program during fiscal year 2025.
Title: SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS RECONCILIATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the Schedule at the fair market value of commodities used, which are amounts provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: Bridgehampton Union Free School District has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule reflects only those expenditures that are subject to the requirements of the Uniform Guidance, and thus excludes certain items reported in the District's financial statements. For the fiscal year ended June 30, 2024, the District reported $4,534 in surplus food commodities received from the federal government as federal sources revenue in its governmental funds financial statements. However, in accordance with the Uniform Guidance, the value of surplus food commodities used during the fiscal year is required to be reported as federal awards expended. Therefore, an adjustment of $398 was reflected, resulting in a total of $4,136 reported as non-cash assistance (food distribution) for surplus food commodities used in the National School Lunch Program, ALN: 10.555. Additionally, for the fiscal year ended June 30, 2024, subsequent to the year end, the District received notification from the State about a reduction in funding for expenditures that had already occurred in the amount of $21,945, which was reported as federal sources revenue in the governmental funds financial statements. The following is a reconciliation of the federal revenues reported in the financial statements to federal awards expended, as reported in the Schedule:

Finding Details

2024-001. Allowable Costs/Cost Principles: Compensation – Personal Services United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: Salaries and wages charged to federal awards must be supported by documentation prescribed by the Uniform Guidance at Subpart E, 2 CFR §200.430. Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee's compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PARs) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District prepared periodic certification equivalents, but it did not comply with Subpart E, 2 CFR §200.430. Cause: The individual that was responsible for coordinating the program did not complete time and effort records, as described in Subpart E, 2 CFR §200.430, to support salaries charged to federal awards. Effect: Noncompliance could result in the incorrect amount for services rendered being charged to the federal award. Questioned Costs: None reported. Context: Time records for the balance of employees audited in our sample of 25, who were charged to federal awards by the District, were supportive of amounts included in budgets approved by the State and included in the Final Expenditure Report. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor its procedures to ascertain that documentation to support salaries and wages charged to federal awards is in a format that complies with the requirements of the Uniform Guidance at Subpart E, 2 CFR §200.430. Views of Responsible Officials of Auditee: The District agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the monitoring of procedures to ensure appropriate documentation will be prepared to comply with Subpart E, 2 CFR §200.430.
2024-001. Allowable Costs/Cost Principles: Compensation – Personal Services United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: Salaries and wages charged to federal awards must be supported by documentation prescribed by the Uniform Guidance at Subpart E, 2 CFR §200.430. Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee's compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PARs) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District prepared periodic certification equivalents, but it did not comply with Subpart E, 2 CFR §200.430. Cause: The individual that was responsible for coordinating the program did not complete time and effort records, as described in Subpart E, 2 CFR §200.430, to support salaries charged to federal awards. Effect: Noncompliance could result in the incorrect amount for services rendered being charged to the federal award. Questioned Costs: None reported. Context: Time records for the balance of employees audited in our sample of 25, who were charged to federal awards by the District, were supportive of amounts included in budgets approved by the State and included in the Final Expenditure Report. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor its procedures to ascertain that documentation to support salaries and wages charged to federal awards is in a format that complies with the requirements of the Uniform Guidance at Subpart E, 2 CFR §200.430. Views of Responsible Officials of Auditee: The District agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the monitoring of procedures to ensure appropriate documentation will be prepared to comply with Subpart E, 2 CFR §200.430.
2024-002. Allowable Costs/Cost Principles: Final Expenditure Report for a Federal or State Project (FS-10-F) United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: The District commits to expenditures using federal funds that comply with program guidelines established by federal agencies and in accordance with the State approved program budget. Condition: Testing of the expenditures charged to the grant, determined that costs were in excess of the adjusted budget amount because the actual number of students was less than the target number of students. Cause: The District included certain program costs to be funded by the original amount of the grant award in their final total federal expenditures. The District had not reduced expenditures charged to the grant, as the monitoring of the program, specifically student count data, had not been communicated. Effect: The District included expenditures for reimbursement when calculating its reimbursement from the State, which were in excess of the adjusted budget. Questioned Costs: None, the District will provide the funding for the expenditures in excess of the adjusted budget. Context: The budget was reduced by $21,945, since the actual number of students served was 90% of the target number of students to be served. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor performance indicators for grants in terms of expenditures, and review expenditures charged to grants prior to submitting final cost reports to the New York State Education Department for reimbursement. View of Responsible Officials of Auditee: Management agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the procedures for monitoring performance indicators, as well as the review of final expenditures charged to grants to ensure that they are reimbursable costs under the guidance provided by federal agencies.
2024-002. Allowable Costs/Cost Principles: Final Expenditure Report for a Federal or State Project (FS-10-F) United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: The District commits to expenditures using federal funds that comply with program guidelines established by federal agencies and in accordance with the State approved program budget. Condition: Testing of the expenditures charged to the grant, determined that costs were in excess of the adjusted budget amount because the actual number of students was less than the target number of students. Cause: The District included certain program costs to be funded by the original amount of the grant award in their final total federal expenditures. The District had not reduced expenditures charged to the grant, as the monitoring of the program, specifically student count data, had not been communicated. Effect: The District included expenditures for reimbursement when calculating its reimbursement from the State, which were in excess of the adjusted budget. Questioned Costs: None, the District will provide the funding for the expenditures in excess of the adjusted budget. Context: The budget was reduced by $21,945, since the actual number of students served was 90% of the target number of students to be served. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor performance indicators for grants in terms of expenditures, and review expenditures charged to grants prior to submitting final cost reports to the New York State Education Department for reimbursement. View of Responsible Officials of Auditee: Management agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the procedures for monitoring performance indicators, as well as the review of final expenditures charged to grants to ensure that they are reimbursable costs under the guidance provided by federal agencies.
2024-001. Allowable Costs/Cost Principles: Compensation – Personal Services United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: Salaries and wages charged to federal awards must be supported by documentation prescribed by the Uniform Guidance at Subpart E, 2 CFR §200.430. Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee's compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PARs) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District prepared periodic certification equivalents, but it did not comply with Subpart E, 2 CFR §200.430. Cause: The individual that was responsible for coordinating the program did not complete time and effort records, as described in Subpart E, 2 CFR §200.430, to support salaries charged to federal awards. Effect: Noncompliance could result in the incorrect amount for services rendered being charged to the federal award. Questioned Costs: None reported. Context: Time records for the balance of employees audited in our sample of 25, who were charged to federal awards by the District, were supportive of amounts included in budgets approved by the State and included in the Final Expenditure Report. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor its procedures to ascertain that documentation to support salaries and wages charged to federal awards is in a format that complies with the requirements of the Uniform Guidance at Subpart E, 2 CFR §200.430. Views of Responsible Officials of Auditee: The District agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the monitoring of procedures to ensure appropriate documentation will be prepared to comply with Subpart E, 2 CFR §200.430.
2024-001. Allowable Costs/Cost Principles: Compensation – Personal Services United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: Salaries and wages charged to federal awards must be supported by documentation prescribed by the Uniform Guidance at Subpart E, 2 CFR §200.430. Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee's compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PARs) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District prepared periodic certification equivalents, but it did not comply with Subpart E, 2 CFR §200.430. Cause: The individual that was responsible for coordinating the program did not complete time and effort records, as described in Subpart E, 2 CFR §200.430, to support salaries charged to federal awards. Effect: Noncompliance could result in the incorrect amount for services rendered being charged to the federal award. Questioned Costs: None reported. Context: Time records for the balance of employees audited in our sample of 25, who were charged to federal awards by the District, were supportive of amounts included in budgets approved by the State and included in the Final Expenditure Report. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor its procedures to ascertain that documentation to support salaries and wages charged to federal awards is in a format that complies with the requirements of the Uniform Guidance at Subpart E, 2 CFR §200.430. Views of Responsible Officials of Auditee: The District agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the monitoring of procedures to ensure appropriate documentation will be prepared to comply with Subpart E, 2 CFR §200.430.
2024-002. Allowable Costs/Cost Principles: Final Expenditure Report for a Federal or State Project (FS-10-F) United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: The District commits to expenditures using federal funds that comply with program guidelines established by federal agencies and in accordance with the State approved program budget. Condition: Testing of the expenditures charged to the grant, determined that costs were in excess of the adjusted budget amount because the actual number of students was less than the target number of students. Cause: The District included certain program costs to be funded by the original amount of the grant award in their final total federal expenditures. The District had not reduced expenditures charged to the grant, as the monitoring of the program, specifically student count data, had not been communicated. Effect: The District included expenditures for reimbursement when calculating its reimbursement from the State, which were in excess of the adjusted budget. Questioned Costs: None, the District will provide the funding for the expenditures in excess of the adjusted budget. Context: The budget was reduced by $21,945, since the actual number of students served was 90% of the target number of students to be served. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor performance indicators for grants in terms of expenditures, and review expenditures charged to grants prior to submitting final cost reports to the New York State Education Department for reimbursement. View of Responsible Officials of Auditee: Management agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the procedures for monitoring performance indicators, as well as the review of final expenditures charged to grants to ensure that they are reimbursable costs under the guidance provided by federal agencies.
2024-002. Allowable Costs/Cost Principles: Final Expenditure Report for a Federal or State Project (FS-10-F) United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: The District commits to expenditures using federal funds that comply with program guidelines established by federal agencies and in accordance with the State approved program budget. Condition: Testing of the expenditures charged to the grant, determined that costs were in excess of the adjusted budget amount because the actual number of students was less than the target number of students. Cause: The District included certain program costs to be funded by the original amount of the grant award in their final total federal expenditures. The District had not reduced expenditures charged to the grant, as the monitoring of the program, specifically student count data, had not been communicated. Effect: The District included expenditures for reimbursement when calculating its reimbursement from the State, which were in excess of the adjusted budget. Questioned Costs: None, the District will provide the funding for the expenditures in excess of the adjusted budget. Context: The budget was reduced by $21,945, since the actual number of students served was 90% of the target number of students to be served. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor performance indicators for grants in terms of expenditures, and review expenditures charged to grants prior to submitting final cost reports to the New York State Education Department for reimbursement. View of Responsible Officials of Auditee: Management agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the procedures for monitoring performance indicators, as well as the review of final expenditures charged to grants to ensure that they are reimbursable costs under the guidance provided by federal agencies.