Audit 367221

Material Weakness:2024-002 Recommend continued enhancement/monitoring of established policies and procedures surrounding grant compliance Criteria: Current Uniform Guidance and Government Auditing Standards emphasize the importance and requirement for grantees to maintain internal control policies and procedures surrounding the administration of federal grants, focusing clearly on internal controls over compliance with federal requirements for each major program. Condition: As noted in the prior year audit, the District has yet to fully update and review established policies and procedures surrounding risk assessments and grants management associated with the direct administration of federal grants (and others), focusing on clearly defining the key components (i.e., control environment, risk assessment, control activities, information and communication, monitoring). See also the Financial Statement Finding 2024-001 reported in accordance with Government Auditing Standards. Perspective Information: This is a repeat finding from the prior year. Cause: As noted above (Finding 2024-001), in December of 2024 (fiscal year 2025) the District adopted an updated manual to address policies and procedures surrounding grant administration. Potential Effect: Specific grant compliance requirements may not be complied with. Moreover, errors or fraud may occur which may not be prevented or detected in a timely manner. Auditor’s recommendation: In our professional opinion, as recommended in prior years, it is important the District evaluate enhancements to address timely updating of established procedures to ensure the District’s compliance with grant and financial reporting requirements. Management and those charged with governance should design and implement internal controls surrounding financial reporting which ensure timely reconciliation, reporting, monitoring of financial activity and grant compliance. Such policies and procedures should include centralized reporting and monitoring of grant requirements and compliance related thereto should be incorporated into established organizational internal control policies and procedures (inclusive of risk assessment). Adequate grant administration (compliance and internal controls surrounding compliance should be a collaborative effort between grant administrators and the accounting/business staff. A routine assessment (annually) should be performed by individuals involved in the day-to-day activities of the District, to ensure the appropriate design and implementation of internal controls, policies, and procedures. The District implemented an updated manual in December 2024 (fiscal year 2025). View of Responsible Official and Planned Corrective Action: The Silver Lake Regional School District adopted and maintains a Federal Grants Manual however the lack of dedicated grant personnel presents a challenge in following the manual with fidelity.

2024-003 Completion and filing of the Single Audit in accordance with OMB guidelines. Criteria: OMB guidelines generally require the District’s Single Audit to be completed and filed by March 31 of the following year (March 31, 2025). Condition: The District was unable to meet the filing deadline in the current year. This is a repeat finding from the prior year. Perspective Information: This is a repeat finding from the prior year. Cause: The District was not closed out and timely with the audit. Effect: The District’s filing is considered late by OMB. Auditor’s Recommendation: We recommend the District work to meet the required filing deadline. View of Responsible Official and Planned Corrective Action: The District is working to meet filing deadlines in the future. Again, the lack of sufficient staff has hampered progress on this.