FAC Explorer

Audit 364599

FY End
2024-06-30
Total Expended
$6.33M
Findings
2
Programs
15
Organization: City of Derby, Connecticut (CT)
Year: 2024 Accepted: 2025-08-20
Auditor: Accavallo & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574018 2024-006 - Yes ABFGLM
1150460 2024-006 - Yes ABFGLM

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.15M Yes 0
10.553 School Breakfast Program $273,900 Yes 0
84.027 Special Education Grants to States $76,189 - 0
10.560 State Administrative Expenses for Child Nutrition $34,739 - 0
84.010 Title I Grants to Local Educational Agencies $31,027 - 0
84.048 Career and Technical Education -- Basic Grants to States $30,599 - 0
10.555 National School Lunch Program $23,316 Yes 0
84.424 Student Support and Academic Enrichment Program $19,112 - 0
84.425 Education Stabilization Fund $18,663 Yes 0
84.173 Special Education Preschool Grants $17,433 - 0
83.027 Special Education Grants to States $7,480 - 0
84.365 English Language Acquisition State Grants $7,171 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $5,274 - 0
10.559 Summer Food Service Program for Children $3,010 Yes 0
10.649 Pandemic Ebt Administrative Costs $2,612 - 0

Contacts

Name Title Type
MMHNRUKVBKV8 Brian Hall Auditee
2037361456 John Accavallo Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2- NONCASH AWARDS Accounting Policies: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Derby, Connecticut, under programs of the federal government 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 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 City of Derby, Connecticut, it is not intended to, and does not, present the financial position, changes in fund balance, changes in net position or cash flows of the City of Derby, Connecticut. Basis of Accounting Expenditures reported on the Schedule are reported using 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate. Donated commodities in the amount of $23,316 are included in the Department of Agriculture’s National Scholl Lunch Program, Assistance Listing #10.555. The amount represents the market value of commodities received.
Title: NOTE 3- INDIRECT COST RECOVERY Accounting Policies: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Derby, Connecticut, under programs of the federal government 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 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 City of Derby, Connecticut, it is not intended to, and does not, present the financial position, changes in fund balance, changes in net position or cash flows of the City of Derby, Connecticut. Basis of Accounting Expenditures reported on the Schedule are reported using 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate. City of Derby, Connecticut, did not recover its indirect costs using the 10% de minimis indirect cost rate provided under Section 200.414 of the Uniform Guidance.

Finding Details

Finding 2024-006
*24-06 Comingling of Funds Finding: The Board of Education maintains one cash account for operations and grants. The comingling of operational and grant monies makes it difficult if not impossible to reconcile with the City. Criteria: A separate bank account should be maintained for grant income and expenditures to properly track inflows and outflows of grant monies. Assets such as grants receivable and liabilities such as deferred inflows and accounts payable should also be recorded and reconciled monthly. Cause: Improper classification of grant funds. Effect: Significant errors can occur and not be timely detected. Also see findings 24-01, 24-04 to 24-05. Recommendation: We recommend that the Board of Education utilize the accounting system to reconcile cash, accounts receivable, accounts payable, deferred inflows of financial resources in addition to the income and expenditures for educational grants. In addition, we recommend moving the grant accounting from the General Fund to a Special Revenue Fund where it is better classified. Management’s Response: Completed - As of July 1, 2023, the Board of Education separated Operating and Grant check runs to hit the respective bank accounts. This also includes the payroll account. Grant payroll totals are transferred to the payroll account from the Grant account.
Finding 2024-006
*24-06 Comingling of Funds Finding: The Board of Education maintains one cash account for operations and grants. The comingling of operational and grant monies makes it difficult if not impossible to reconcile with the City. Criteria: A separate bank account should be maintained for grant income and expenditures to properly track inflows and outflows of grant monies. Assets such as grants receivable and liabilities such as deferred inflows and accounts payable should also be recorded and reconciled monthly. Cause: Improper classification of grant funds. Effect: Significant errors can occur and not be timely detected. Also see findings 24-01, 24-04 to 24-05. Recommendation: We recommend that the Board of Education utilize the accounting system to reconcile cash, accounts receivable, accounts payable, deferred inflows of financial resources in addition to the income and expenditures for educational grants. In addition, we recommend moving the grant accounting from the General Fund to a Special Revenue Fund where it is better classified. Management’s Response: Completed - As of July 1, 2023, the Board of Education separated Operating and Grant check runs to hit the respective bank accounts. This also includes the payroll account. Grant payroll totals are transferred to the payroll account from the Grant account.