Audit 359815

FY End
2024-06-30
Total Expended
$2.29M
Findings
14
Programs
7
Year: 2024 Accepted: 2025-06-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
566944 2024-003 Material Weakness Yes A
566945 2024-003 Material Weakness Yes A
566946 2024-003 Material Weakness Yes A
566947 2024-003 Material Weakness Yes A
566948 2024-003 Material Weakness Yes A
566949 2024-003 Material Weakness Yes A
566950 2024-003 Material Weakness Yes A
1143386 2024-003 Material Weakness Yes A
1143387 2024-003 Material Weakness Yes A
1143388 2024-003 Material Weakness Yes A
1143389 2024-003 Material Weakness Yes A
1143390 2024-003 Material Weakness Yes A
1143391 2024-003 Material Weakness Yes A
1143392 2024-003 Material Weakness Yes A

Contacts

Name Title Type
EZ1KL7H4XHM3 Miriam Goodman Auditee
5085207991 Grady Connor Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate The King Philip Regional School District (the District) is a governmental agency established by the laws of the Commonwealth of Massachusetts, for the purposes of providing public education for grades middle school through high school. It is comprised of its member towns of Town of Norfolk, Town of Wrentham, and the Town of Plainville. All operations related to the District's federal grant programs are included in the scope of the OMB Uniform Guidance. The U.S. Department of Education has been designated as the District’s oversight agency for purposes of the audit. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the King Philip Regional School District for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the King Philip Regional School District it is not intended to and does not present the financial position, or changes in the financial position of the District.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: CASH AND NONCASH ASSISTANCE - CHILD NUTRITION CLUSTER Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate The following define the cash and non-cash assistance provided by the U.S. Department of Agriculture's Child Nutrition cluster – National School Lunch Program (Assistance Listing #10.555). Cash : represent federal reimbursement for meals during the year. Non-cash assistance :represent food commodities received under a state distribution formula and are valued at federally published wholesale prices for purposes of this schedule. Such commodities are not recorded in the financial records, although memorandum records are maintained.
Title: SUBRECIPIENTS Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate The District did not have any subrecipients for the year ended June 30, 2024.
Title: COVID-19 PANDEMIC RELATED FUNDING Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the de minimis cost rate Programs identified in the accompanying Schedule of Expenditures of Federal Awards which have been funded pursuant to federal legislation as a result of the coronavirus pandemic have been specifically indicated with the prefix- COVID-19.

Finding Details

Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.
Material weakness 2024-003 Reporting and Internal Controls Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award’s compliance requirement on an annual basis. This includes ensuring original approved grants are amended in accordance with activities for which expenditures are incurred (activities allowed). Established procedures should ensure that established policies and procedures surrounding grants administration ensure that activity associated with approved grants is accurately classified and posted as incurred. Moreover, all grant reporting should be formally reconciled with the underlying accounting records and performed within the appropriate period (reporting). Condition: As a result of the prior year audit (fiscal year 2023), during fiscal year 2025 the current Superintendent worked directly with the pass-through entity (Massachusetts Department of Elementary and Secondary Education), to correct numerous eligibility and reporting errors associated with certain costs classified within the awarded grants and associated reporting. As noted in prior year, certain activity was reclassified via journal entry. As we noted in the fiscal year 2023 audit, final grant reports associated with the awards were not filed with the pass-through entity within 60 days after the end of the grant period. Initial copies of final reports were tested were not clearly reconciled to the underlying accounting records. Subsequent corrected final reporting has been performed. During fiscal year 2025, the District repaid disallowed costs of $59,067 reported in the fiscal year 2023 Single Audit. Additionally, subsequent to year end (fiscal year 2025), we noted the District paid funds to a third-party nonprofit entity for final administration of a grant for which the District had been administering. We have been informed by current administration that additional work is being performed to ensure propriety of all amounts expended. Cause: Established policies and procedures and the implementation and ongoing monitoring of the administration of award programs was not sufficient to ensure activity processed through the District’s general ledger was in accordance with approved grant budgets. Grant personnel had insufficient involvement with monitoring the grants, ensuring ongoing monitoring and amendments (as applicable) after the initial grant submission and approval with subsequent changes and reconciliations with the underlying accounting records. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, which was as a result of receiving COVID-19 pandemic related funding. While the District established general procedures surrounding administration of grant awards in accordance with District processes and guidance proposed by the bypass-through agency during fiscal year 2023, the implementation of such procedures was not sufficient. Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Inadequate monitoring of awarded grants, compliance and reporting could result in material misstatements (in addition to potential for unallowed costs) not being prevented, detected and corrected in a timely manner. Additionally, amounts reported in the District’s schedule of expenditures of federal awards (SEFA) could be misstatement. Questioned Costs: None. Repeat Finding: This is a repeat finding from the prior year. (2023-001). Auditor’s recommendation: The establishment, implementation of effective internal controls (surrounding financial reporting and compliance) is the ongoing responsibility of management and those charged with governance. We recommend the District review establish policies and procedures surrounding the administration of federal grants and award programs (in addition to financial reporting). Such enhancements should consider, but not be limited to additional procedures to ensure identification of federal grant programs, review and documentation of annual compliance requirements of all grants received and a centralized monitoring and reporting (schedule of expenditures of federal awards), reconciliation, amendments related thereto. We recommend grants personnel/managers be involved in the ongoing monitoring of each awarded grants with business office personnel, ensuring activity is charged to appropriate grants as incurred and funds are drawn on a reimbursement basis to ensure minimal amount of time District is in receipt of the federal funds.